A MONTHLY METER OF INDUSTRY TRENDS
SIGNS OF RECOVERY IN THE OFFICE MARKET
The economic recovery is finally making a dent in some office vacancy rates. For instance, in San Jose — where vacancies topped 20% in the third quarter of 2003 — the office vacancy rate declined by 2.3% to 19.3%.
Article Tools
Latest News
Most Popular Articles
advertisement
| Metro | 4Q 2003* | 3Q 2003* | 3Q % Change* |
|---|---|---|---|
| Long Island | 11.6% | 14% | -2.4% |
| San Jose | 19.3% | 21.6% | -2.3% |
| Westchester/Mid-Hudson, N.Y. | 11% | 13.1% | -2.1% |
| Stamford, Conn. | 14.6% | 16% | -1.4% |
| Boston | 19.7% | 21% | -1.3% |
| *Percentage point change | |||
| Source: CB Richard Ellis | |||
SITE SELECTION FACTORS CORPORATE USERS VALUE MOST
Building location is most important when considering corporate relocation or expansion, according to a survey of corporate users of commercial real estate conducted by NREI and Coldwell Banker Commercial this winter. Employment costs, tax incentives, a skilled labor force and transportation issues were also cited as important by at least one-third of respondents.
INDUSTRIAL STRENGTH: WHO'S HOT AND WHO'S NOT
At 22.9% vacancy, Jacksonville, Fla., holds the dubious distinction of having the highest industrial vacancy rate in the nation. Meanwhile, the New York industrial market is steaming: both Westchester and Long Island are at a mere 6.1% vacancy rate.
| Westchester Mid-Hudson, N.Y. | 6.1% | Jacksonville, Fla. | 22.9% |
| Long Island | 6.1% | Austin, Texas | 22.8% |
| Mid-New Jersey | 7.1% | Pittsburgh | 21.4% |
| Northern New Jersey | 7.8% | Boston | 19.7% |
| St. Louis | 8.5% | Las Vegas | 18.2% |
| Source: CB Richard Ellis | |||
SINGLE-TENANT RETAIL SHOWS STRENGTH
Low interest rates have encouraged investor interest in real estate, and single-tenant retail provides a safe, low-maintenance investment. In addition, 1031 Exchange buyers are nearing the end of a traditional eight-year ownership cycle, according to Marcus & Millichap. This process depresses cap rates as more investors get involved — a trend that is expected to continue for at least the next six months, the firm predicts.
FLYING SOLO
In the U.S., the number of single-person households is on the rise. By 2010, 28% of U.S. households will consist of one person. And according to Bureau of Labor data, more than 40% of one-person households will rent their residences.
Want to use this article? Click here for options!
© 2010 Penton Media Inc.
Acceptable Use Policy blog comments powered by Disqus
Quick Poll
advertisement
NREI Interactive Products
-
Podcast
Commercial Real Estate: Hey, Save a Piece of Stimulus Pie for Me!
Following a year that saw the near meltdown of the banking system, 2010 could shape up to be a better year for investors, though perhaps not as robust as some would wish.
-
Podcast
Is the Recession Over?
Rick Mattoon, senior economist with the Federal Reserve Bank of Chicago, shares the latest numbers from the Fed's National Activity Index that show the economy is experiencing a fairly sharp rebound from the bottom of the Great Recession.
Webinars
2010: The Year of the Sale - Leaseback
This webinar provides brokers, bankers, developers, CFOs and real estate executives with a blueprint for accessing the many facets of the sale-leaseback model.
Blogs
-
Green Shoots
-
BlackSwan
-
Traffic Court
Current Issue
Marketplace Ads
advertisement
advertisement
advertisement
advertisement
