10. Office Vacancies Remain Elevated
With the labor market unable to generate significant office-using employment, demand for space remains muted. It is therefore unsurprising that national vacancies have not declined much since they peaked at 17.6 percent in late 2010. Vacancies refused to budge during the second quarter, remaining at 17.0 percent. This is a nominal slowdown from the prior quarter’s 10 basis point decline in vacancy.
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9. Law Firms Continue to Scale Back on Office Space Needs
With the Dow Jones Industrial Average hitting record highs, home prices rebounding and interest rates remaining low, the question now is how long it will take the office market to catch up to the recovery.
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8. Office Developers are Moving Off the Sidelines
Despite the slow office market recovery, developers are continuing to search for—and find—new opportunities.
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7. Office Market to Hit Full Stride by 2014
The office market continued its climb upward during the second quarter, with the national vacancy rate falling to 15.3 percent, according to reports by CBRE and Cassidy Turley.
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6. Companies Using Lease Renewals As Opportunity to Reconfigure Space
Gone are the days when a lease renewal was a simple matter of agreeing on a new rental rate and signing on the dotted line. These days, renewals are triggering an opportunity for tenants to revamp space to fit their changing needs.
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5. MOB Sales Volume Down But Prices Up Due to High Demand
Demand for medical office buildings continues to overwhelm supply in mid-year 2013, pushing pricing higher and causing capital to chase tertiary properties.
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4. Gordon DuGan Warns Net-Lease Investors to Tread Carefully When Buying Office and Industrial Assets
A net-lease CEO has been sounding a warning bell about what he sees as puzzling deals being inked for office and industrial net-lease properties.
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3. Medical Offices Grow in Favor Among Net Lease Investors
Converging trends have fostered growing attention on the medical sub-sector of net lease real estate, with demographics, federal legislation and technological advances all working in tandem.
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2. Expect at Least $2B in Medical Office Portfolio Sales in 2013
Doubling down is the name of the medical office game, as health care REITs specializing in medical office buildings now typically see twice the yield as companies focusing on other property types. Large portfolio sales volume increased from the previous record of $1 billion set in 2007 to $2 billion in 2012. And according to a recent Jones Lang LaSalle study, medical office portfolio sales volume is likely to again hit $2 billion by the end of 2013, with REITs such as Health Care REIT, Healthcare Trust of America, HCP, Healthcare Realty Trust and Ventas leading the purchasing pack.
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1. Will Co-Working Erode Demand for Office Space?
Co-working—the latest trend in workplace strategies—could be the catalyst that shakes up the staid office market.
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