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.
The green movement has been slow to come to the data center industry—not surprising for facilities that are believed to make up to 2 percent of the nation’s total power consumption,—but now many major data center owners and developers have embraced sustainability as a new goal.
The trickle-down of the efficient-office movement is catching up with law firms, forcing partners to figure out ways to not only service downsizing clients, but also save on their own real estate costs.
Businesses are showing their confidence in the economy in early 2015, actively seeking growth and space expansion. Though national office fundamental growth crawled even slower in the first quarter than in previous months, it’s clear the industry’s reset button has been hit hard, experts say, and the next three years should beat records for quick rent growth and absorption.
Two new studies show that investors, developers and brokers have accepted that catering to the tech sector, and the new-fangled space needs of its employees, is the best path to low vacancy and high rents.
The top 25 hotel markets in the U.S. had an average occupancy growth of 5 percent in 2014, as the industry proved it is just about fully recovered from the devastating impact of the recession. U.S. cities with improving job and housing markets are doing best of all.
Demand for e-commerce fulfillment centers and new manufacturing facilities has shifted industrial space requirements from large properties to mid-sized buildings, already in short supply following the recession. The shift is contributing to higher prices for infill land parcels.
Miami’s industrial market, currently enjoying record low vacancy of about 4.5 percent, is attracting more powerful investors who want to buy in as demand overwhelms supply and new Panamax-sized ships pull up to the newly expanded port.