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
One 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.
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