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 : Indianapolis, Indiana
A growing technology cluster has put Indianapolis on many investors’ watch lists. Employment growth is occurring in key office-using sectors, with professional and business services jobs expanding by 5.5 percent year-over-year in 2013, and financial services growing 1.9 percent over the same period. Unemployment stood at 5.8 percent at the end of the year, slightly better than Boston’s jobless rate and on a par with San Jose. That employment growth hasn’t translated into significant office absorption for Indianapolis, however. Occupancy gains in the suburbs in 2013 were largely offset by a contraction in occupied space downtown, and downtown properties will likely lose more tenants before tightening in the suburbs drives users into the CBD. Submarkets enjoying the greatest demand are the Keystone and North/Carmel suburbs. Those neighborhoods have seen their vacancy rates drop into the middle to lower teens while West Indianapolis grapples with a vacancy rate well over 30 percent.
To read more on Indianapolis, and other top office markets, download the full version of the Top Office Markets to Watch report below.
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