Sperry Van Ness International Corporation’s (SVNIC) 2014 Top Markets to Watch Reports assess the current state of the national commercial real estate market, and identify micro-trends within specific geographic regions and industries for 2014. Today we are delving into the 2014 Top Office Markets to Watch. Not the largest, or the most actively contested markets, the 2014 Office Markets to Watch are each at an important juncture that presents unique opportunities for investment. Together, they reflect the diversity of trends that is driving the economy and commercial real estate performance in markets across the country.
TOP OFFICE MARKET TO WATCH : Chicago, Illinois
Elevated but improving unemployment of 8.3 percent is a reminder that Chicago is lagging other major markets on the road to economic recovery. The office sector entered 2014 with nearly a fifth of its office space available for lease or sublease, but leasing activity appears to be accelerating. The central business district is attracting tenants from the suburbs as the urbanization trend takes hold, with employers moving closer to employees that live downtown. Office rents are exhibiting the volatility typical at the bottom of a market cycle, and posted a slight year-over-year decline at the end of 2013. Chicago’s diverse economy positions it for accelerated hiring as the national recovery gains momentum, but that growth is unlikely to bring substantial absorption of office space in 2014. For office investors seeking a bargain on assets in a top tier city, non-trophy assets in Chicago may harbor good opportunities with the potential to increase value as the local economic recovery finds its stride.
To read more on Chicago, and other top office markets, download the full version of the Top Office Markets to Watch report below.
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