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San Francisco, CA | 2016 Top #CRE Markets to Watch: Office

SVNIC’s 2016 Market Outlook Reports assess the current state of the national commercial real estate market, and identify micro-trends within specific geographic regions and industries for 2016. Today we are delving into the 2016 Top Office Markets to Watch. Not the largest or the most actively contested markets, the 2016 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: San Francisco, CA

San Francisco - Top Office Market to WatchSan Francisco remains one of the hottest office markets in North America, led by booms in the tech industry that are seeking urban locations over sprawling campus sites. As such, the Bay Area has some of the highest rents and lowest vacancies and this trend is not forecast to reverse anytime soon. The overall economy is very healthy for the size of this metro, with unemployment at 3.9% as of January ‘16, according to the Bureau of Labor Statistics. Office-using sectors are some of the fastest growing, with Professional and Business Services, Information, and Financial Activities growing at 5.4%, 4.8%, and 1.3% annualized rates, respectively. Affordability of office space, as well as overall cost of living and operating, are the biggest impediments to sustained growth; thus, expect the suburbs to grow and urbanize at increasing rates as well.

Stay Updated…

Over the next few weeks, the SVN Blog will be featuring posts that will focus on each of the top markets to watch for industrial, multifamily, office, and retail properties. SVN Advisors from selected top markets have provided their industry expertise regarding what to look out for in their specific market in the coming months. Don’t miss out on these important insights – subscribe to the SVN Blog on the right side of the blog homepage.

To read more on other top office markets, download the full version of the 2016 Office Market Outlook report here.

2016 Office Market Outlook

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San Antonio, TX | 2016 Top #CRE Markets to Watch: Office

SVNIC’s 2016 Market Outlook Reports assess the current state of the national commercial real estate market, and identify micro-trends within specific geographic regions and industries for 2016. Today we are delving into the 2016 Top Office Markets to Watch. Not the largest or the most actively contested markets, the 2016 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: San Antonio, TX

San Antonio, like many Texas metros, has experienced significant economic growth with minimal impacts from the past recession. Overall, total employment is at near record highs and unemployment sits at 3.7% as of January ‘16, according to the Bureau of Labor Statistics. The metro’s diversified economic base from trade and manufacturing to research and finance has left the office market relatively healthy and poised to grow in 2016 and beyond. All key office sectors are growing, including Financial Activities, Professional and Business Services, and Information, at annualized rates of 2.1%, 2.0%, and 1.0%, respectively. San Antonio does have significant exposure to industries such as automobiles and energy that could come under pressure in continued global slowdowns, but overall the risk to the office market does not appear significant at this time.

Stay Updated…

Over the next few weeks, the SVN Blog will be featuring posts that will focus on each of the top markets to watch for industrial, multifamily, office, and retail properties. SVN Advisors from selected top markets have provided their industry expertise regarding what to look out for in their specific market in the coming months. Don’t miss out on these important insights – subscribe to the SVN Blog on the right side of the blog homepage.

To read more on other top office markets, download the full version of the 2016 Office Market Outlook report here.

2016 Office Market Outlook

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Minneapolis, MN | 2016 Top #CRE Markets to Watch: Office

SVNIC’s 2016 Market Outlook Reports assess the current state of the national commercial real estate market, and identify micro-trends within specific geographic regions and industries for 2016. Today we are delving into the 2016 Top Office Markets to Watch. Not the largest or the most actively contested markets, the 2016 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: Minneapolis, MN

Minneapolis - Top Office Market to WatchMinneapolis remains one of the strongest and most stable economies in the nation with 3.9% unemployment in January ‘16, according to the Bureau of Labor Statistics. The metro area has steadily gained total employment while only experiencing a modest decline during the past recession. The key office-using sectors are fairly stable with modest growth as Financial Activities and Professional and Business Services gain jobs at 1.6% and 0.9% annualized rates, respectively, while Information remains mostly flat at –0.3%. Given that Minneapolis is repeatedly cited as a good place to do business, its office market is likely to maintain stability and grow in 2016 and beyond. Further, Minneapolis is experiencing a long-term trend of re-urbanization, meaning that the CBD is likely to perform well for the extended horizon.

Stay Updated…

Over the next few weeks, the SVN Blog will be featuring posts that will focus on each of the top markets to watch for industrial, multifamily, office, and retail properties. SVN Advisors from selected top markets have provided their industry expertise regarding what to look out for in their specific market in the coming months. Don’t miss out on these important insights – subscribe to the SVN Blog on the right side of the blog homepage.

To read more on other top office markets, download the full version of the 2016 Office Market Outlook report here.

2016 Office Market Outlook

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Houston, TX | 2016 Top #CRE Markets to Watch: Office

SVNIC’s 2016 Market Outlook Reports assess the current state of the national commercial real estate market, and identify micro-trends within specific geographic regions and industries for 2016. Today we are delving into the 2016 Top Office Markets to Watch. Not the largest or the most actively contested markets, the 2016 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: Houston, TX

Houston - top office market to watchHouston is the hub of oil and energy production in the United States and, as such, is uniquely susceptible to the recent oil price declines that appear to have near-term persistence. It is likely that the office market in Houston will experience some pain in 2016 and beyond on a relative basis. Declines are already being felt in key office sectors with Information and Professional and Business Services declining at -2.5% and -1.8% annualized rates, respectively; however, Financial Activities is growing at 2.0% and thus should balance some of the negative effects. Overall, the Houston economy is actually fairly healthy with a 4.8% unemployment rate as of January ‘16 which has stayed near constant for much of 2015; thus, fears of the oil price declines may be overblown.

Advisor Insights: SVN | HINT Advisors

SVN’s Houston-based Advisors at SVN | HINT Advisors have some office market highlights to share. Here’s what to look out for in the Houston office market in 2016:

  • A mild increase in office sublease due to a zero net job growth, following the thousands of jobs lost between December 2014 and April 2016.
  • Increase in concessions from landlords when leasing office space is ongoing.
  • Job losses appear to have stabilized with an unemployment rate at 4.8%, and a resurgence in the energy sector is expected in the future.
  • Due to Houston’s diverse economy in recession proof sectors such as healthcare, petrochemical, and international trade, employment (and demand for office space) is expected to continue.

Stay Updated…

Over the next few weeks, the SVN Blog will be featuring posts that will focus on each of the top markets to watch for industrial, multifamily, office, and retail properties. SVN Advisors from selected top markets have provided their industry expertise regarding what to look out for in their specific market in the coming months. Don’t miss out on these important insights – subscribe to the SVN Blog on the right side of the blog homepage.

To read more on other top office markets, download the full version of the 2016 Office Market Outlook report here.

2016 Office Market Outlook

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Ft. Lauderdale | 2016 Top #CRE Markets to Watch: Office

SVNIC’s 2016 Market Outlook Reports assess the current state of the national commercial real estate market, and identify micro-trends within specific geographic regions and industries for 2016. Today we are delving into the 2016 Top Office Markets to Watch. Not the largest or the most actively contested markets, the 2016 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: Ft. Lauderdale, FL

Ft. Lauderdale - top office market to watchFt. Lauderdale has experienced significant recovery from the recession but still remains below pre-recession peaks in both total employment and lows in the unemployment rate. Still, the economy is quite healthy with a 4.7% unemployment measure as of January ‘16, according to the Bureau of Labor Statistics. As part of a multi-metro region, Ft. Lauderdale offers relatively lower office rents and higher occupancies, as well as an overall lower regional cost of living (especially compared to Miami) and thus is a rational place to grow and expand a business. Key office sectors are displaying strength with Financial Activities, Professional and Business Services, and Information all markedly positive with annualized growth rates of 4.5%, 4.3%, and 2.1%, respectively. The office market of Ft. Lauderdale should perform well in 2016.

Stay Updated…

Over the next few weeks, the SVN Blog will be featuring posts that will focus on each of the top markets to watch for industrial, multifamily, office, and retail properties. SVN Advisors from selected top markets have provided their industry expertise regarding what to look out for in their specific market in the coming months. Don’t miss out on these important insights – subscribe to the SVN Blog on the right side of the blog homepage.

To read more on other top office markets, download the full version of the 2016 Office Market Outlook report here.

2016 Office Market Outlook

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Denver, CO | 2016 Top #CRE Markets to Watch: Office

SVNIC’s 2016 Market Outlook Reports assess the current state of the national commercial real estate market, and identify micro-trends within specific geographic regions and industries for 2016. Today we are delving into the 2016 Top Office Markets to Watch. Not the largest or the most actively contested markets, the 2016 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: Denver, CO

Denver - top office market to watchDenver remains one of the most rock-solid metropolitan economies in the nation with 3.0% unemployment in January ‘16, according to the Bureau of Labor Statistics, while maintaining steady, slow growth that has total employment at record highs. The office market is equally steady with a relatively low level of vacancy and fair asking rents. This stability and growth should persist in 2016 for the office sector as key employment groups – Financial Activities, Professional and Business Services, and Information – are all showing strong-to-decent annualized growth of 3.9%, 3.2%, and 1.8%, respectively. Denver maintains a diversified set of economic base activities including aerospace, bioscience, and energy, just to name a few. As such, the office market is likely to withstand any negative impacts of global uncertainty and oil price declines for the foreseeable future.

Advisor Insights: SVN | Denver Commercial

SVN Advisors at SVN | Denver Commercial have some office market highlights to share:

  • Over 2 million square feet of newly delivered space is coming on the market, temporarily inflating vacancy rates.
  • Energy industry impact on office vacancy is significant as energy prices stay at their low prices. Sublet opportunities are up, and many energy company offices have closed completely. Vacancy rates have risen to mid-to-high teens.
  • Mixed use, co-work spaces continue to flourish, especially in the burgeoning CBD area. Conversion and re-purposing of old warehouses and factories is prevalent in the market.
  • Denver is creating jobs, with over 45,000 new positions in the last twelve months. Demand for office should rise concurrently with the job creation trend. Denver has become a desirable 18 hour city that attracts top talent in many industries.

Stay Updated…

Over the next few weeks, the SVN Blog will be featuring posts that will focus on each of the top markets to watch for industrial, multifamily, office, and retail properties. SVN Advisors from selected top markets have provided their industry expertise regarding what to look out for in their specific market in the coming months. Don’t miss out on these important insights – subscribe to the SVN Blog on the right side of the blog homepage.

To read more on other top office markets, download the full version of the 2016 Office Market Outlook report here.

2016 Office Market Outlook

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Dallas, TX | 2016 Top #CRE Markets to Watch: Office

SVNIC’s 2016 Market Outlook Reports assess the current state of the national commercial real estate market, and identify micro-trends within specific geographic regions and industries for 2016. Today we are delving into the 2016 Top Office Markets to Watch. Not the largest or the most actively contested markets, the 2016 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: Dallas, TX

Dallas - top office market to watchDallas remains one of the fastest growing employment centers in the nation, even with the energy price declines of 2015. According to the Bureau of Labor Statistics, the unemployment rate sits near record lows at 3.8% as of January ‘16, with the city creating over a half million new jobs since the recession. The office markets have fared well, as key office sectors of Financial Activities and Professional and Business Services have grown at strong annualized rates of 4.8% and 2.3%, respectively. Information has remained fairly flat at 0.4% annualized growth. As Dallas has become a modern international city with the help of the DFW airport, it is perhaps the best positioned market in the oil-producing region of the U.S. to weather any pain from the petroleum industry. The office market should remain stable and growing in 2016 and beyond.

Stay Updated…

Over the next few weeks, the SVN Blog will be featuring posts that will focus on each of the top markets to watch for industrial, multifamily, office, and retail properties. SVN Advisors from selected top markets have provided their industry expertise regarding what to look out for in their specific market in the coming months. Don’t miss out on these important insights – subscribe to the SVN Blog on the right side of the blog homepage.

To read more on other top office markets, download the full version of the 2016 Office Market Outlook report here.

2016 Office Market Outlook

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Cincinnati, OH | 2016 Top #CRE Markets to Watch: Office

SVNIC’s 2016 Market Outlook Reports assess the current state of the national commercial real estate market, and identify micro-trends within specific geographic regions and industries for 2016. Today we are delving into the 2016 Top Office Markets to Watch. Not the largest or the most actively contested markets, the 2016 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: Cincinnati, OH

Cincinnati - top office market to watchCincinnati’s economy is still struggling to find a consistent growth trend as unemployment started the new year at 5.2%, up from 3.9% in August of ‘15, according to the Bureau of Labor Statistics. Positive signs for the office market can be seen in Financial Activities and Information, which are growing at annualized rates of 3.6% and 2.2%, respectively; however the key office-using sector of Professional and Business Services is losing ground with –1.6% growth. Overall, the run of consolidations in industries such as banking, legal firms, etc. has still left Cincinnati with relatively high vacancies and lower lease rates. As the national economy grows, these relative pricing advantages should position Cincinnati to gain new tenants and users looking to locate in the region.

Advisor Insights: SVN | Commercial Realty Advisors, Inc.

SVN’s Cincinnati-based Advisors at SVN | Commercial Realty Advisors, Inc. have some office market highlights to share. Here’s what to look out for in the Cincinnati office market in 2016:

  • Continued rise in absorption
  • Declining vacancy rate
  • Continued recovery and stabilization

Stay Updated…

Over the next few weeks, the SVN Blog will be featuring posts that will focus on each of the top markets to watch for industrial, multifamily, office, and retail properties. SVN Advisors from selected top markets have provided their industry expertise regarding what to look out for in their specific market in the coming months. Don’t miss out on these important insights – subscribe to the SVN Blog on the right side of the blog homepage.

To read more on other top office markets, download the full version of the 2016 Office Market Outlook report here.

2016 Office Market Outlook

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Atlanta, GA | 2016 Top #CRE Markets to Watch: Office

SVNIC’s 2016 Market Outlook Reports assess the current state of the national commercial real estate market, and identify micro-trends within specific geographic regions and industries for 2016. Today we are delving into the 2016 Top Office Markets to Watch. Not the largest or the most actively contested markets, the 2016 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: Atlanta, GA

Screen Shot 2016-07-26 at 4.09.42 PMAtlanta has experienced strong gains in total employment and is setting record highs as of January ‘16, according to the Bureau of Labor Statistics, with unemployment at 5.2% and new job creation at an annualized rate of 3.5%. This includes growth in key office-using sectors including Professional and Business Services, Financial Activities, and Education and Health Services, which grew at annualized rates 5.0%, 2.0%, and 1.8%, respectively. In addition, Construction employment is growing at a 7.4% annualized rate, indicating further overall economic growth is projected to occur in Atlanta in 2016 and beyond. According to Georgia Trend, many high impact industries are likely to accelerate growth in Atlanta including life sciences and technology. These forces should cause rising rental rates and falling vacancies in the metro region, with downtown/midtown potentially poised to gain in the overall trend of urbanization affecting cities such as Atlanta.

Stay Updated…

Over the next few weeks, the SVN Blog will be featuring posts that will focus on each of the top markets to watch for industrial, multifamily, office, and retail properties. SVN Advisors from selected top markets have provided their industry expertise regarding what to look out for in their specific market in the coming months. Don’t miss out on these important insights – subscribe to the SVN Blog on the right side of the blog homepage.

To read more on other top office markets, download the full version of the 2016 Office Market Outlook report here.

2016 Office Market Outlook

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Washington, DC | 2015 Top #CRE Markets to Watch: Office

Sperry Van Ness International Corporation’s (SVNIC) 2015 Market Update Reports assess the current state of the national commercial real estate market, and identify micro-trends within specific geographic regions and industries for 2015. Today we are delving into the 2015 Top Office Markets to Watch. Not the largest or the most actively contested markets, the 2015 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: Washington, DC

Washington, DC: 2015 Office Markets to WatchJust a few years ago, record federal deficits were driving clarion calls for sharply reduced government spending. Few markets would have borne the burden of spending and employment cuts in the civil service like Washington, DC. Worries about how a smaller government footprint might impact space demand seem overblown in retrospect; leasing activity and underlying office-using employment trends remain generally stable in the core of the metro area. Vacancy rates trended higher during 2014 and early 2015, but those results capture losses in occupancy in Northern Virginia and suburban Maryland, and weakness in selected submarkets, including the Capitol Riverfront just south of the Capitol Building. It also reflects that recent lease expirations and tenant moves have seen firms downsize their office space, while at least one federal agency has reverted to government-owned space. Offsetting those trends, office development activity in Washington has been relatively subdued, at least as compared to New York and San Francisco. The overall trend is one of slow rent growth and relatively stable occupancy. However, investors in the District should keep a careful eye on projects underway. While the pipeline saw few new additions in early 2015, completions pick up in the latter half of the year and in 2016. The combination of measured gains in fundamentals and rising interest rates could exert downward pressure on values, rewarding patient investors who delay acquisitions till next year.

To read more on Washington, DC and other top office markets, download the full version of the 2015 Office Market Update report here.

2015 Office Market Outlook

It’s a different world out there.

It requires a different kind of commercial real estate firm working on your behalf in order to be successful. The Lipsey Company has ranked the Sperry Van Ness® organization as one of the most recognized commercial real estate brands in the US for a reason—we know how to deliver a certainty of execution for our clients. Sperry Van Ness International Corporation is one of the largest commercial real estate franchisors with more than 180 locations in 200 markets.

Silicon Valley, CA | 2015 Top #CRE Markets to Watch: Office

Sperry Van Ness International Corporation’s (SVNIC) 2015 Market Update Reports assess the current state of the national commercial real estate market, and identify micro-trends within specific geographic regions and industries for 2015. Today we are delving into the 2015 Top Office Markets to Watch. Not the largest or the most actively contested markets, the 2015 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: Silicon Valley, CA

Silicon Valley: 2015 Office Markets to WatchWith one of the fastest growing office-use job markets in the country, it is no wonder that San José and the surrounding area boast rent growth rivaling the most highly sought-after neighborhoods in Manhattan and San Francisco. Underpinning that momentum, the continued expansion of established tech firms and heady space demand from newly funded startups has pushed effective rents in prime areas like Palo Alto and Mountain View to levels approaching – and in some cases surpassing – their dot-com highs. Setting the pace, Silicon Valley investors spent much of 2014 watching Google’s leasing and buying spree. Among the highlights, the tech giant’s moves across the Peninsula included purchases of 6 office buildings comprising almost one million square feet and the leasing of Moffett Airfield from NASA.

Development is picking up as the market tightens further and corporate campus moves take large blocks of space off the market. The slate of corporate real estate projects is headlined by Apple’s Campus 2, which is expected to open in 2016. The tally of projects in the surrounding area reached nearly 5 million square feet by the end of 2014. With pre-leasing levels dropping, developers are betting the tech boom still has legs. Those optimistic assessments are well reflected in aggressive property pricing; cap rates averaging 5.8% in 2014 are on par with the largest and most actively traded gateway markets.

To read more on Silicon Valley and other top office markets, download the full version of the 2015 Office Market Update report here.

2015 Office Market Outlook

It’s a different world out there.

It requires a different kind of commercial real estate firm working on your behalf in order to be successful. The Lipsey Company has ranked the Sperry Van Ness® organization as one of the most recognized commercial real estate brands in the US for a reason—we know how to deliver a certainty of execution for our clients. Sperry Van Ness International Corporation is one of the largest commercial real estate franchisors with more than 180 locations in 200 markets.

Research Triangle, NC | 2015 Top #CRE Markets to Watch: Office

Sperry Van Ness International Corporation’s (SVNIC) 2015 Market Update Reports assess the current state of the national commercial real estate market, and identify micro-trends within specific geographic regions and industries for 2015. Today we are delving into the 2015 Top Office Markets to Watch. Not the largest or the most actively contested markets, the 2015 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: Research Triangle, NC

Research Triangle: 2015 Office Markets to WatchThe Raleigh-Durham region is already home to the sprawling, 22.5 million square foot Research Triangle Park (RTP), the largest science campus of its kind in the United States. In spite of their established position, Raleigh and Durham are not resting on their laurels. Instead, they are embracing the “innovation district” concept with open arms and a renewed vigor is now permeating the Research Triangle’s office markets. RTP is vying to make itself more appealing as well, building residential and retail amenities on a 100-acre site within the science park. Longfellow Real Estate Partners, an innovation district veteran of Cambridge, Massachusetts’s Kendall Square, is trying to spearhead an ambitious 1.3 million square foot mixed-use innovation district in downtown Durham. The development of Raleigh’s Union Station, the new passenger train station to replace the currently overcrowded Amtrak hub, represents a commitment by the city to improve its urban core through heavily investing in its currently inadequate mass transit options and long-stalled commuter rail system for the Research Triangle area.

Office fundamentals strengthened in 2014, with vacancy falling by 200 basis points over the year. There is a flurry of new development throughout the region, with roughly 1.4 million square feet of urban core space under construction that should be reasonably well absorbed given the prevailing outlook for space demand.

To read more on the Research Triangle and other top office markets, download the full version of the 2015 Office Market Update report here.

2015 Office Market Outlook

It’s a different world out there.

It requires a different kind of commercial real estate firm working on your behalf in order to be successful. The Lipsey Company has ranked the Sperry Van Ness® organization as one of the most recognized commercial real estate brands in the US for a reason—we know how to deliver a certainty of execution for our clients. Sperry Van Ness International Corporation is one of the largest commercial real estate franchisors with more than 180 locations in 200 markets.

Oakland, CA | 2015 Top #CRE Markets to Watch: Office

Sperry Van Ness International Corporation’s (SVNIC) 2015 Market Update Reports assess the current state of the national commercial real estate market, and identify micro-trends within specific geographic regions and industries for 2015. Today we are delving into the 2015 Top Office Markets to Watch. Not the largest or the most actively contested markets, the 2015 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: Oakland, CA

Oakland: 2015 Office Markets to WatchMimicking the dynamics of the Bay Area’s residential markets, Oakland is well-positioned to welcome tenants fleeing from the relentless expansion of tech companies as they further saturate San Francisco’s office landscape. Spillovers from San Francisco to Oakland are not new – they have been a feature of the market ever since the first tech companies decided to move up from Silicon Valley to the urban core of the city – but higher rents and limited space opposite the Bay Bridge have increased Oakland’s appeal. Outside of a few homegrown tech companies like Pandora and Ask.com, and a stream of freshly incubated tech startups, Oakland has yet to land its first big San Francisco tech migrant (as of early 2015). Brokers are reporting that several tech companies have been “kicking the tires” at the Sears Building, which is currently undergoing renovations to transform the former department store into tech-friendly office space. Other tenants, like chocolatier TCHO, advertising agency EVB, and several law firms, have taken advantage of the disparity in rental rates and taken the short BART ride over to Oakland.

For small- and mid-cap investors willing to accept lower liquidity than in San Francisco, Oakland’s higher cap rates and favorable prospects may offer compelling buying opportunities over the next year. Fundamentals are pointing in the right direction as investors keep their fingers crossed for a flurry of activity should big tech companies put their stamp of approval on the East Bay.

To read more on Oakland and other top office markets, download the full version of the 2015 Office Market Update report here.

2015 Office Market Outlook

It’s a different world out there.

It requires a different kind of commercial real estate firm working on your behalf in order to be successful. The Lipsey Company has ranked the Sperry Van Ness® organization as one of the most recognized commercial real estate brands in the US for a reason—we know how to deliver a certainty of execution for our clients. Sperry Van Ness International Corporation is one of the largest commercial real estate franchisors with more than 180 locations in 200 markets.

Chicago, IL | 2015 Top #CRE Markets to Watch: Office

Sperry Van Ness International Corporation’s (SVNIC) 2015 Market Update Reports assess the current state of the national commercial real estate market, and identify micro-trends within specific geographic regions and industries for 2015. Today we are delving into the 2015 Top Office Markets to Watch. Not the largest or the most actively contested markets, the 2015 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, IL

Chicago: 2015 Office Markets to WatchThe transformation of Chicago’s River North submarket echoes the metamorphoses of many up-and-coming submarkets in the United States. With an eclectic mix of industrial-era warehouses and lofts, plus plenty of bus and subway connections, effective rents in the submarket have spiked since 2012, following a path similar to Manhattan’s Midtown South tech district. Tech companies like crowd-sourced reviewer Yelp, online coupon provider Groupon, online payment processor Braintree, and the digital marketing division of McDonald’s, are located in buildings like the Reid Murdoch Center, a former food-processing plant, and the Mart, an Art Deco warehouse that formerly housed Marshall Field. Several of Chicago’s other submarkets are also recasting themselves, with the Fulton Market area leading the pack. The former Fulton Market Cold Storage warehouse (now flagged as 1kFulton) was repositioned as more than 500,000 square feet of office space, headlined by tenants like Google, tech incubator Sandbox Industries, and Chicago-based bicycle component producer, SRAM Corporation. Several projects, including boutique hotels, restaurants, and retail spaces, are now underway around 1kFulton, vying for locations proximate to Google’s Midwest regional headquarters. While traditional business stalwarts still prefer the Loop, there are many rapidly improving submarkets in downtown Chicago that are offering compelling opportunities for small- and mid-cap investors.

To read more on Chicago and other top office markets, download the full version of the 2015 Office Market Update report here.

2015 Office Market Outlook

It’s a different world out there.

It requires a different kind of commercial real estate firm working on your behalf in order to be successful. The Lipsey Company has ranked the Sperry Van Ness® organization as one of the most recognized commercial real estate brands in the US for a reason—we know how to deliver a certainty of execution for our clients. Sperry Van Ness International Corporation is one of the largest commercial real estate franchisors with more than 180 locations in 200 markets.

Boston, MA | 2015 Top #CRE Markets to Watch: Office

Sperry Van Ness International Corporation’s (SVNIC) 2015 Market Update Reports assess the current state of the national commercial real estate market, and identify micro-trends within specific geographic regions and industries for 2015. Today we are delving into the 2015 Top Office Markets to Watch. Not the largest or the most actively contested markets, the 2015 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: Boston, MA

Boston: 2015 Office Markets to WatchBy almost any measure, 2014 was a banner year for the Boston office market. Overall vacancy in the Boston metro area dropped to its lowest level since the dot-com boom. Asking rents in East Cambridge reached all-time record highs, with biotech companies and tech giants competing for space near the academic heart of the submarket. Across the metro area, asking rents in the office sector increased by just over 10% during 2014, and are on track for a comparable result in 2015. Contrasting its peer markets, leasing and rent growth was particularly strong in the suburban submarkets.

Boston has nearly 5 million square feet of office space under construction, but a significant share of those projects are single-tenant build-to-suit. In the multi-tenant market, the current balance of supply and demand echoes the frenzied pace of leasing in San Francisco’s office market. For small- and mid-cap investors making price comparisons with Manhattan and San Francisco, Boston offers investors comparatively cheap opportunities with average cap rates in the upper-end of the 5.5% to 6.0% range.

To read more on Boston and other top office markets, download the full version of the 2015 Office Market Update report here.

2015 Office Market Outlook

It’s a different world out there.

It requires a different kind of commercial real estate firm working on your behalf in order to be successful. The Lipsey Company has ranked the Sperry Van Ness® organization as one of the most recognized commercial real estate brands in the US for a reason—we know how to deliver a certainty of execution for our clients. Sperry Van Ness International Corporation is one of the largest commercial real estate franchisors with more than 180 locations in 200 markets.

Denver, CO | 2015 Top #CRE Markets to Watch: Office

Sperry Van Ness International Corporation’s (SVNIC) 2015 Market Update Reports assess the current state of the national commercial real estate market, and identify micro-trends within specific geographic regions and industries for 2015. Today we are delving into the 2015 Top Office Markets to Watch. Not the largest or the most actively contested markets, the 2015 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: Denver, CO

Denver: 2015 Office Markets to WatchFor both employers and high-skilled workers, few markets exert the same pull as Denver. The convergence of low costs of living, appealing amenities, and a business-friendly environment has allowed Denver to expand over time beyond its historical base in the energy sector. While business migration to the urban core has dominated activity and pushed the submarket vacancy rate below 10%, not every firm is headed to the CBD. In particular, some technology companies are eschewing the central business district for more flexible, open floor-plan spaces in the Lower Downtown (LoDo) and South Denver neighborhoods. LoDo is home to a disproportionate share of current office construction, though new inventory has yet to weigh on rent trends. Across the metro area, development activity is roughly 2% of in-place inventory – limited, when compared to the surge in projects underway in markets like Houston and Dallas.

While better diversified than smaller energy markets, Denver is still exposed to the vagaries of oil industry booms and busts. With about 20% of Denver’s CBD occupied by oil and gas companies, there was some worry in early 2015 that slumping oil prices could lead to instability in the office market. Most market observers agree that this will only become a major issue for Denver’s long-term outlook if a prolonged period of depressed oil prices leads to significant restructuring in the industry.

To read more on Denver and other top office markets, download the full version of the 2015 Office Market Update report here.

2015 Office Market Outlook

It’s a different world out there.

It requires a different kind of commercial real estate firm working on your behalf in order to be successful. The Lipsey Company has ranked the Sperry Van Ness® organization as one of the most recognized commercial real estate brands in the US for a reason—we know how to deliver a certainty of execution for our clients. Sperry Van Ness International Corporation is one of the largest commercial real estate franchisors with more than 180 locations in 200 markets.

Dallas, TX | 2015 Top #CRE Markets to Watch: Office

Sperry Van Ness International Corporation’s (SVNIC) 2015 Market Update Reports assess the current state of the national commercial real estate market, and identify micro-trends within specific geographic regions and industries for 2015. Today we are delving into the 2015 Top Office Markets to Watch. Not the largest or the most actively contested markets, the 2015 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: Dallas, TX

Dallas: 2015 Office Markets to WatchOffice absorption topped 2 million square feet in Dallas last year, fueled by exceptional office-use job growth, corporations relocating to the Dallas Metroplex, or expanding their operations in this business-friendly locale. Among last year’s notable moves, Toyota North America announced that it would build its $350-million, 1.8-million-square-foot corporate campus in the Legacy West mixed-use complex in West Plano. State Farm is moving into its 2.1-million-square-foot space at the sprawling CityLine campus in Richardson. Other companies, like Omnitracs and Active Network, took space for their corporate headquarters in existing central business district office towers, where the vacancy rate fell below 20% for the first time since before the recession.

Dallas’ Uptown submarket is booming with the first of several new developments pre-leasing in the range of $50 per square foot. Activity in Uptown is expected to radiate out to other submarkets, as some professional services tenants, like law firms and accountants, seek protection from the rapidly increasing rents at their current locations.

Investors should be cautious of the outlook for new supply in Dallas and the surrounding area. While two-thirds of the 6 million square feet of office space under construction in the Metroplex is pre-leased, that still leaves roughly 2 million square feet of new supply entering the competitive inventory. That new supply may slow the pace of effective rent growth and drag on occupancy levels.

To read more on Dallas and other top office markets, download the full version of the 2015 Office Market Update report here.

2015 Office Market Outlook

It’s a different world out there.

It requires a different kind of commercial real estate firm working on your behalf in order to be successful. The Lipsey Company has ranked the Sperry Van Ness® organization as one of the most recognized commercial real estate brands in the US for a reason—we know how to deliver a certainty of execution for our clients. Sperry Van Ness International Corporation is one of the largest commercial real estate franchisors with more than 180 locations in 200 markets.

Brooklyn, NY | 2015 Top #CRE Markets to Watch: Office

Sperry Van Ness International Corporation’s (SVNIC) 2015 Market Update Reports assess the current state of the national commercial real estate market, and identify micro-trends within specific geographic regions and industries for 2015. Today we are delving into the 2015 Top Office Markets to Watch. Not the largest or the most actively contested markets, the 2015 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: Brooklyn, NY

Brooklyn: 2015 Office Markets to WatchA large swathe of Downtown Brooklyn was rezoned in 2004 with the intention of transforming the neighborhood into a back-office haven rivaling that of Jersey City. Over the following decade, developers instead jumped at the chance to reposition defunct industrial space as new luxury condominium offerings. More recently, the burgeoning tech sector has fueled demand for flexible office space with less traditional formats. The structured suit-and-tie regimes of Manhattan’s Midtown office submarket have been ill-suited to the preferences of these prospective tenants. Capitalizing on the opportunity, building owners in and around DUMBO, Brooklyn Heights, and the Brooklyn Navy Yard have branded their area as the Brooklyn Tech Triangle. The Dumbo Heights complex (housed in the old Watchtower buildings which once served as the headquarters for the Jehovah’s Witnesses) is currently being refurbished, but already has major leases with e-commerce site Etsy, and co-working front-runner WeWork. The Brooklyn Navy Yard houses manufacturers of parachutes and bullet-proof vests, but now increasingly is attracting architectural and design firms for use of its office space. The downtown Brooklyn office vacancy currently sits at less than 4% with TAMI tenants (technology, advertising, media and information) clamoring for more space. Developers are looking to other neighborhoods in order to service the demand, and are making bets on offices in Fort Greene, near Pacific Park (formerly Atlantic Yards), and industrial space in Sunset Park as the next hopeful TAMI magnets.

To read more on Brooklyn and other top office markets, download the full version of the 2015 Office Market Update report here.

2015 Office Market Outlook

It’s a different world out there.

It requires a different kind of commercial real estate firm working on your behalf in order to be successful. The Lipsey Company has ranked the Sperry Van Ness® organization as one of the most recognized commercial real estate brands in the US for a reason—we know how to deliver a certainty of execution for our clients. Sperry Van Ness International Corporation is one of the largest commercial real estate franchisors with more than 180 locations in 200 markets.

Austin, TX | 2015 Top #CRE Markets to Watch: Office

Sperry Van Ness International Corporation’s (SVNIC) 2015 Market Update Reports assess the current state of the national commercial real estate market, and identify micro-trends within specific geographic regions and industries for 2015. Today we are delving into the 2015 Top Office Markets to Watch. Not the largest or the most actively contested markets, the 2015 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: Austin, TX

Austin: 2015 Office Markets to WatchA thriving tech sector set against an otherwise well-diversified local economy has made Austin a favorite of secondary market investors. In 2014, the pace of rent gains approached the double-digits as the vacancy rate fell to one of the lowest levels of any market in the country. Exceptional momentum in the local office market carried forward into the first half of 2015, though the pace of rent growth may taper off as more than 3 million square feet of office space currently under construction comes to market. In-progress projects and those in the planning and proposal stages are projected to expand the office inventory by nearly 10% over the coming years. Pre-leasing will blunt only some of the impact of new inventory. Although several high-profile central business district office construction projects like the 370,000-square-foot Colorado Tower and 195,000-square-foot IBC Tower are nearly entirely pre-leased, enthusiastic developers have allowed projects to go forward with fewer and fewer commitments.

With cap rates below 6%, investors in the Austin market face a higher burden in growing income over their investment time horizon. Current rent growth trends speak to the market’s potential, but investors should be cautious in any case. With a significant expansion in its office inventory over the next several years and more limited pre-leasing than its peer markets, Austin is exposed should the current expansion reach its peak earlier than is widely expected.

To read more on Austin and other top office markets, download the full version of the 2015 Office Market Update report here.

2015 Office Market Outlook

It’s a different world out there.

It requires a different kind of commercial real estate firm working on your behalf in order to be successful. The Lipsey Company has ranked the Sperry Van Ness® organization as one of the most recognized commercial real estate brands in the US for a reason—we know how to deliver a certainty of execution for our clients. Sperry Van Ness International Corporation is one of the largest commercial real estate franchisors with more than 180 locations in 200 markets.

#CRE Trends and Market Update 2015 | Office

Office Market Outlook

Employment Gains Drive Office Outlook

Solid gains in office-using employment are driving renewed demand for space, pushing occupancy rates and effective rents higher across a wide range of US markets. Prospective tenants have shown a clear preference for centrally located properties, but demand for suburban office space is showing signs of improvement as its cost advantages over the urban core become more pronounced. Investors in the sector may balk at record-low cap rates for large trophy properties; however, in the small- and mid-cap segments of the market, buyers will find less aggressive pricing and improving access to mortgages through regional and community banks and conduit lenders. In exploring those opportunities, entrepreneurial investors will encounter a growing class of tenants preferring flexible lease structures and co-working arrangements in addition to more traditional long-term lease rolls.

Long-Awaited Job Gains

Office Markets to Watch 2015Never in the recent history of the American economy has it taken so long to recover the jobs lost over the course of a downturn. That milestone was reached in 2014, more than 6 years after the Great Recession first took hold. Employers added more than 3 million jobs over the year, finally recouping losses from the crisis-era cull in the strongest showing for job creation since the dot-com boom.

Until recently, the lagging recovery in jobs — specifically in office-using employment — has been one of the primary drags on office sector fundamentals. Momentum in leasing activity had been concentrated in urban cores, often at the expense of suburban office properties, and in a subset of markets with high exposure to the energy and technology sectors. Leasing has also picked up as job gains have broadened and firms have grown more confident in their expectations of business activity. As a share of the office inventory, net absorption in 2014 was nearly double its long-term average. The national vacancy rate fell below 15% for the first time in 7 years, owing primarily to an uptick in leasing in central business districts (CBDs). Topping the list of the strongest CBDs, the vacancy rate in Manhattan trended below 10% in early 2015, contesting San Francisco for the title of tightest gateway office market. In Midtown South, one of New York’s tech and new media hubs, the vacancy rate has fallen below 5%, driving the largest rent gains of any submarket in the country.

While national leasing activity moderated in the early part of 2015, the medium-term outlook for space demand is healthy. Returning to the underlying drivers of space demand in the labor market, job openings climbed above 5 million positions in the early part of the year – the highest level since 2001. A large percentage of those new jobs fall into office-using occupations, including key subsets of professional and business services, supporting the overall outlook for the sector. Investors are naturally concerned that place-of-work trends and more modern space layouts will undermine the traditional relationship between employment and space demand. While those are credible concerns, limited construction in most markets means the balance of supply and demand is projected to weigh in favor of occupancy and rent gains for the immediate future.

Office Market Statistics in 2015

Office development activity is on the rise, albeit still at a restrained pace when compared to the apartment sector. Measured in terms of spending, investment in new office properties jumped nearly 25% in 2014 to $36.9 billion. While that is substantially lower than the pre-crisis peak in spending, some gateway markets are seeing a boom in activity unprecedented in recent history. At the leading edge of investment in New York City, Hudson Yards will introduce more than 17 million square feet of new commercial and residential space to the West Side of Manhattan. As the largest private development in US history, its 5 new office towers will redefine the Manhattan skyline.

In addition to New York, other leading markets for office construction include Austin, Dallas, Houston, San Francisco, San Jose, and Seattle. In each case, properties under construction represent more than 5% of the in-place inventory. The drop in oil prices over the last year offers a stark reminder that the relative success of new office projects depends critically on factors outside the immediate control of investors. In Houston – which accounts for nearly 20% of all current office construction in the United States, and an even larger share of spec development – demand conditions have softened appreciably in late 2014 and early 2015.

Office Construction SpendingOffice Spending Change

Asking rents in the office sector increased nationally by 5.2% in 2014, nearly twice the pace of the prior year. Gains were generally stronger in central business districts and weaker for suburban properties, where lease rollovers remain dilutive to cash flow in many locales.

The top markets for rent growth included Austin, New York, San Francisco, and San Jose. In the strongest submarkets, including those catering most directly to technology and new media companies, rent growth rates climbed to double-digits last year, and show few signs of losing momentum midway through 2015.

Office Asking RentsOffice Rent Change

Anticipating continued improvement in fundamentals, the office sector reached a milestone in 2014 as values in gateway and primary markets surpassed pre-crisis levels. Nationally, value-weighted cap rates based on underwriting of property sales and mortgage refinancings declined to an average of 5.8%, and were often substantially lower for trophy central business district properties. New York and San Francisco both reported CBD cap rates just below 5%, followed closely by Los Angeles, Boston, Washington, DC, and Orange County. Suburban cap rates were generally between 30 and 100 basis points higher. Detroit was among the notable exceptions, with CBD office cap rates 40 basis points higher than cap rates outside the urban core.

Office Cap RatesOffice Cap Rates Spread

Market Cap Rates

Value-weighted national average office cap rates fell to 5.8% in 2014, pushed lower by record pricing in New York City and other gateway markets. Cap rates varied significantly across a wider range of primary and secondary markets, urban, and suburban locales. Not weighted by transaction size, the national average for central business district properties was 70 basis points higher, at 6.5%. Suburban cap rates were generally higher, averaging 6.9%. The highest suburban office cap rates were in the Midwest, capping out in Detroit at 8.7%.

It’s a different world out there.

It requires a different kind of commercial real estate firm working on your behalf in order to be successful. The Lipsey Company has ranked the Sperry Van Ness® organization as one of the most recognized commercial real estate brands in the US for a reason — we know how to deliver a certainty of execution for our clients. Sperry Van Ness International Corporation is one of the largest commercial real estate franchisors, with more than 190 locations in 500+ markets.

To download the full 2015 Office Market Outlook report, click here.

2015 Office Market Outlook

Salt Lake City, UT | 2014 Top CRE Markets to Watch : Office

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 : Salt Lake City, Utah

salt-lake-city-485867_1280One of the nation’s job-growth leaders since the end of the recession, Salt Lake City boasts a diverse economy with rapid hiring in high tech, finance and other office-using jobs. The unemployment rate of 3.5 percent is one of the lowest in the nation. In 2013, the expanding economy resulted in more than 1 million square feet of net office absorption. A 12 percent vacancy rate at the start of 2014 was the lowest point since 2007, and although rental rates haven’t found a bottom, landlords have gained sufficient pricing power to slash concessions in recent months. Developers appear confident of future demand, however: A 144,000-square-foot tower is already under construction in downtown and a project breaking ground later this year will measure 450,000 square feet. All told, Salt Lake has roughly 1.7 million square feet in the pipeline for the CBD alone, equivalent to a quarter of the downtown inventory. That volume of additional space should raise a red flag among investors, especially since the vacancy rate is already higher downtown than in outlying submarkets.

To read more on Salt Lake City, and other top office markets, download the full version of the Top Office Markets to Watch report below.

It’s a different world out there.

It requires a different kind of commercial real estate firm working on your behalf in order to be successful. The Lipsey Company has ranked the Sperry Van Ness® organization as one of the most recognized commercial real estate brands in the US for a reason—we know how to deliver a certainty of execution for our clients. Sperry Van Ness International Corporation is one of the largest commercial real estate franchisers with more than 180 locations in 200 markets.

Download the Top Trends and Markets to Watch Reports

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Industrial Trends and Markets to Watch
Retail Trends and Markets to Watch
Apartment Trends and Markets to Watch
Commercial Real Estate Trends to Watch

Indianapolis, IN | 2014 Top CRE Markets to Watch : Office

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

IndianapolisA 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.

It’s a different world out there.

It requires a different kind of commercial real estate firm working on your behalf in order to be successful. The Lipsey Company has ranked the Sperry Van Ness® organization as one of the most recognized commercial real estate brands in the US for a reason—we know how to deliver a certainty of execution for our clients. Sperry Van Ness International Corporation is one of the largest commercial real estate franchisers with more than 180 locations in 200 markets.

Download the Top Trends and Markets to Watch Reports

Chandon-Office-CoverOffice Trends and Markets to Watch
Industrial Trends and Markets to Watch
Retail Trends and Markets to Watch
Apartment Trends and Markets to Watch
Commercial Real Estate Trends to Watch

Sacramento, CA | 2014 Top CRE Markets to Watch : Office

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 : Sacramento, California

bridge-67773_1280The economic recovery in California’s capital city has lagged those in Los Angeles, Phoenix and other markets that it has followed more closely in the past. The jobless rate ended 2013 at 8 percent, better than the statewide rate of 8.3 percent, but Sacramento hasn’t yet recovered the number of jobs it lost in the last recession. An office vacancy rate in the middle teens has been falling slowly and began 2014 down about 300 basis points from its peak in 2011. Mildly positive absorption over the past two years contributed to a bottoming out in rental rates in 2013 and the beginnings of a turnaround in rent levels in early 2014. Developers have shown restraint in adding new supply, and fundamentals should improve incrementally this year. While its slow job growth elevates risk, Sacramento offers investment opportunities at higher cap rates than are available in many California markets experiencing a more rapid recovery.

To read more on Sacramento, and other top office markets, download the full version of the Top Office Markets to Watch report below.

It’s a different world out there.

It requires a different kind of commercial real estate firm working on your behalf in order to be successful. The Lipsey Company has ranked the Sperry Van Ness® organization as one of the most recognized commercial real estate brands in the US for a reason—we know how to deliver a certainty of execution for our clients. Sperry Van Ness International Corporation is one of the largest commercial real estate franchisers with more than 180 locations in 200 markets.

Download the Top Trends and Markets to Watch Reports

Chandon-Office-CoverOffice Trends and Markets to Watch
Industrial Trends and Markets to Watch
Retail Trends and Markets to Watch
Apartment Trends and Markets to Watch
Commercial Real Estate Trends to Watch

Richmond, VA | 2014 Top CRE Markets to Watch : Office

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 : Richmond, Virginia

RichmondHiring that pushed Richmond’s jobless rate to a post-recession low of 5.2 percent in December 2013 also fueled brisk absorption of office space during the second half of 2013. The citywide office vacancy rate, which peaked at more than 24 percent in 2008, has returned to single-digit territory after years of methodical recovery in the market. Even in the central business district, where vacancies increased slightly in the early quarters of 2013, the supply of available offices tightened in the second half of the year. Rents have been flat for Class B office space, but average Class A rents have climbed above $20 per square foot and will likely go higher by the end of 2014. Office buildings downtown and in Northwest Richmond are outperforming the overall market, largely at the expense of landlords in the southwest, who have been losing tenants. Nearly a half million square feet of new space under construction, mostly in the CBD, will do little to undermine the current trajectory. Value-add investors are more likely to find bargain pricing in the southwest.

To read more on Richmond, and other top office markets, download the full version of the Top Office Markets to Watch report below.

It’s a different world out there.

It requires a different kind of commercial real estate firm working on your behalf in order to be successful. The Lipsey Company has ranked the Sperry Van Ness® organization as one of the most recognized commercial real estate brands in the US for a reason—we know how to deliver a certainty of execution for our clients. Sperry Van Ness International Corporation is one of the largest commercial real estate franchisers with more than 180 locations in 200 markets.

Download the Top Trends and Markets to Watch Reports

Chandon-Office-CoverOffice Trends and Markets to Watch
Industrial Trends and Markets to Watch
Retail Trends and Markets to Watch
Apartment Trends and Markets to Watch
Commercial Real Estate Trends to Watch