05 Dec 13
During Q3 2013, the largest year-over-year rent increases took place in downtown markets, led by Midtown South Manhattan (up 21.1%), Downtown Manhattan (up 18.1%), and San Francisco (up 16.7%). Downtown Washington, D.C., was the only market that experienced rent declines, dropping 1.9% amid concerns over federal government cuts. In suburban markets, San Francisco, Houston and Denver posted the highest increase year-over-year as a result of continued strong demand from tech and energy companies. Given improved business conditions and low levels of new construction in many markets, occupiers can expect to see an increase in rents in 20 markets over the coming year, up from 18 markets in Q2 2013, with conditions tightening in downtown Dallas, downtown and suburban Philadelphia, and the Chicago suburbs.
04 Dec 13
U.S. multi-housing market fundamentals remained stable in Q3 2013 with the national vacancy rate inching up 10 basis points from a year ago to 4.6%. Over the past four quarters, more than 172,000 units have been absorbed in the Top 50 U.S. markets, reflecting 1.2% annual growth in apartment demand.
22 Nov 13
The U.S.-wide retail availability rate remained relatively stable during Q3 2013, edging up slightly, or 10 basis points (bps), during the quarter to 12.3%. On a year-over-year basis, however, the availability rate was down 60 bps. Net absorption in Neighborhood & Community Centers over the past four quarters totaled more than 23 million sq. ft., with the baseline forecast showing increased demand for space in 2014 and 2015. The year-to-date top performers include Dallas, Houston and Phoenix, which each posted at least 1 million sq. ft. of positive net absorption through the first nine months of the year.
11 Nov 13
Demand for industrial space continued to improve in Q3 2013 with the national availability rate falling 30 basis points (bps) quarter-over-quarter to 11.7%. The Class A institutional availability rate dropped by 90 bps during the quarter to 13.4%, representing 14.3% of total available space, indicating continued strong demand for Class A space. Net absorption increased to 55.4 million sq. ft., up from 48.5 million sq. ft. in Q2 2013.
07 Nov 13
The U.S. office market vacancy rate continued to inch down during Q3 2013, decreasing 10 basis points (bps) during the quarter to 15.1%. The vacancy rate in downtown markets was up 10 bps quarter-over-quarter, but was offset by a 20 bps quarterly decrease in suburban office markets. The Midwest and South saw the largest regional declines in vacancy during the quarter, dropping 50 bps each to 18.5% and 16.7%, respectively. The Midwest’s performance was a result of strong activity by healthcare, insurance and financial services occupiers as well as the conversion of some office space for residential use.
03 Oct 13
TODAY’S LOW-YIELD ENVIRONMENT, combined with the aggressive core office asset pricing in Gateway office markets, has investors asking: Should we continue to purchase core office assets in Gateway markets, or should we begin looking to the non-Gateway markets for new opportunities? Like most things in life, the best answer usually isn’t found at one extreme or the other, but rather involves a mixed strategy. The better question to ask in today’s environment is: What mix of Gateway and non-Gateway office market acquisitions should investors be targeting?
26 Sep 13
The services sector of the high-tech industry accounted for one of every four new office-using jobs created nationwide between 2009 and mid-2013 and has played a major role in the gradual recovery of the U.S. office market. CBRE Global Research and Consulting’s latest report, “U.S. Tech-Twenty: Measuring Office Market Impact,” finds that the industry has been a catalyst for strong rental rate appreciation in key U.S. markets over the past two years, including double-digit rent growth in San Francisco, Austin, San Francisco Peninsula and Silicon Valley. The sector’s impact is even more pronounced for the top tech submarket within the 20 cities tracked in the report, with 10 submarkets posting two-year rent growth of at least 10%, led by SOMA in San Francisco, Redwood City in San Francisco Peninsula and Midtown South in New York City.
12 Sep 13
In Q2 2013, occupiers in the high-tech sector leased the most office square footage by category, according to CBRE Research data based on the top 25 lease transactions in major markets across the U.S. The high-tech category, accounting for 13% of the quarter’s leasing activity, includes high-tech services and manufacturing firms, software and web and e-commerce companies, among others. Eleven percent of space leased nationwide during the quarter was by financial services firms such as banks, mortgage companies, private equity and securities firms. Another 11% was leased by business services companies such as those in real estate, accounting and consulting. Insurance companies continued to lease space at a steady pace, accounting for 9% of major Q2 2013 activity. The government sector accounted for an 8% share despite automatic federal budget cuts due to sequestration and local government cutbacks. Another strong source of leasing activity came from “creative industries” such as media and entertainment, advertising and architectural and engineering firms, which collectively accounted for 7% of all major transactions. The continued strong growth in the oil and gas industry fueled leasing in the energy sector, which accounted for 7% of quarterly leasing activity.
04 Sep 13
With the continued exponential growth of technology, companies and real estate investors alike are spreading across the U.S. in search of established and growing pockets of tech talent. CBRE Global Research and Consulting’s newest report, “Scoring Tech Talent: Implications for U.S. Commercial Real Estate in the Digital Age,” identifies 23 major clusters of tech talent across the U.S., and breaks down the key factors tech employers are considering when choosing markets in which to locate.
27 Aug 13
Economic data painted a mixed picture for retailers in Q2 2013. Total retail sales growth decelerated in Q2 2013, expanding by only 0.81% on a quarter-over-quarter basis, which was down from the 1.03% increase logged in Q1 2013. The quarter’s soft retail sales growth was in line with other mixed economic news, as comprehensive revisions to GDP found that the U.S. economy expanded at a 1.7% annualized rate during Q2 2013, while growth in Q1 2013 was significantly revised downward to 1.1%. Looking at forward indicators, high inventory levels may weigh on economic growth in the coming months.