U.S. hotel industry metrics continued on a strong streak in the second quarter of the year, with increases in both occupancy levels and average daily rates (ADRs), as well as revenue per available room (RevPar) growth that hit double digits in some markets.
At a time when most office markets are seeing significant rent increases due to high demand from office space users, Houston’s office market has experienced its first negative absorption quarter in five years.
Preliminary reports for the second quarter show that office rents are experiencing strong, steady increases in most U.S. markets due to a lack of new construction and renewed hiring in the professional services sector.
Strong consumer spending and the rise in housing construction activity are currently the prime factors for the incredible rebound of the U.S. industrial real estate sector, and experts say as home buying continues to increase, so will demand for warehouse space.
Strong demand for office space is pushing up rents at class-A buildings in all the major U.S. cities, and times have become more challenging for tenants, though they still hold the power in many parts of the country.
High prices, low yields and volatility in their domestic markets have pushed Asian investors to increase acquisitions of U.S. office properties, particularly in the West Coast markets of Los Angeles, San Francisco and Seattle.
Skilled nursing investors competing in today’s frothy market have new goals to shoot for: High-end quality and short-term stays, to both better serve the patients as well as attract profitable Medicare recipients.
Office tenants who became believers in energy conservation in the heyday of the building sustainability movement about two decades ago only to watch building owners take all the credit have cheered a recent new law that will support, track and promote their efforts at being green.