A Statement On Ukraine from Kevin Maggiacomo, SVN President and CEO

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Planning for Post-Pandemic Success: Preparing for Commercial Real Estate’s “Next Normal”

With the global vaccine rollout now underway, there are plenty of reasons to be optimistic about an economic rebound ahead. As lockdowns end, restrictions lift, and new COVID-19 cases continue on a downswing trend, the commercial real estate industry can certainly expect some relief as we enter into the “Next-Normal.”

The CDC COVID Data Tracker (below) tracks daily trends in the number of COVID-19 cases in the U.S. as reported to the CDC by state and territory. As the below Data Tracker illustrates, the COVID-19 surge trend appears to be behind us.

Source: CDC COVID Data Tracker

While we aren’t completely out of the woods yet, things are looking up for industry recovery. And although we still have many unanswered questions, we also now have the forward momentum we lacked for so long, which allows for the big-picture planning needed for success in a post-pandemic world.

The global pandemic upended daily life for more than a year. It has changed how we live, where we work, even what we wear on our faces. As a result, we are seeing major shifts in consumer behavior, consumption, and lifestyle, among other things. Data collected during 2020 and currently in 2021 shows that several sectors of the commercial real industry are certainly still feeling the weight of these shifts.

Sectoral Impact

RETAIL

The Retail sector took a significant blow as the pandemic made nonessential in-person shopping quite literally illegal for a period. As Americans sheltered indoors, everyday activities such as going to the grocery store were now weighed under a contagion risk analysis. Consumption that would have normally been completed in-person has quickly flowed into online orders. The e-commerce share of retail consumption has steadily risen for more than two decades, reaching 11.8% in Q1 20201, but as the full effect of the lockdown reached a fever pitch in Q2, the share ballooned to 16.1%. While the share came down to 14.0% through Q4 2020, reflecting some natural reversion, the familiarity gained by consumers cannot be undone, and the pandemic has permanently accelerated some retail activity away from brick-and-mortar.

At the same time, manufacturers don’t have the same options they once did: As governments enacted state-wide lockdowns and shelter-in-place orders to limit the spread of COVID-19, manufacturers across the globe — which typically operate with long lead times — were brought to a complete halt. The manufacturing sub-sector has since been fighting an uphill battle, but as market conditions continue to improve, there is hope that factories will have the capacity to gain back some of the productions they lost in 2020.

INDUSTRIAL

For the Industrial sector, particularly warehouse spaces, there was a period in 2020 just ahead of the pandemic and the rapid shift to record levels of online shopping when rent growth for the overall Industrial sector was pacing ahead of cold storage. (A cold storage warehouse is used to store fresh and/or frozen perishable fruits or vegetables, or any combination thereof, at the desired temperature to maintain the quality of the product.) Cold storage rent growth has been rising since the start of the pandemic in 2020. Prior to the pandemic, rent for cold storage space averaged around $10 per square foot; currently, that number could vault to as much as $30 per square foot.2

As of February 2021, the Industrial sector has seen production drop by nearly 5%, compared to a year prior, while retail sales have increased by over 6%.3

HOSPITALITY

Hospitality was, and continues to be, among the hardest-hit industries during the pandemic. Some research suggests that recovery to pre-COVID-19 levels for the industry could take until 2023 or later. However, things already seem to be looking up for Hospitality: For the week ending March 13, 2021, U.S. hotel industry RevPAR was $53.45 — a decline of only 15.8% from the same week in 2020, which is mostly a function of easier comparisons, according to data from STR, CoStar’s hospitality analytics firm.4

Looking Ahead: The Road To Recovery

Economic recovery in a post-pandemic world depends on several factors. The economic impact of COVID-19 is being felt on a global scale, and with specific sectors more severely impacted, some may experience a quicker rebound than others once the crisis is behind us. Given the universal lifestyle changes people have had to make, and their subsequent effects on the economy, the COVID-19 crisis has pushed many industries to adjust rapidly… and continuously.

The recovery rate of various sectors will have a massive impact regionally over the next two years, according to a report by KPMG. And not all industries are equally affected: certain sectors of the economy will thrive once the pandemic is over, while others will face a seemingly endless headwind.

The Industrial sector seems poised for post-pandemic growth. A few sub-sectors are already beginning to see significant recovery:

  • Warehouses underlying e-commerce, such as cold storage space
  • Big-box retail selling essential goods, such as Walmart and Target
  • Office space in certain locations, such as suburban areas

In the long run, the Retail sector is likely to be the biggest casualty as we exit the pandemic. This sector was already struggling before COVID-19, with vacant suburban shopping malls and big retailers shuttering stores across the country. Since the pandemic hit, many well-known brands have all filed for bankruptcy. The weakness of the retailers themselves, the accelerated growth of e-commerce, and questions about how quickly shoppers will head back to the stores all weigh against a strong recovery.

If the laws of physics extend to commercial real estate, then 2021 should be a year of recovery in the Retail sector, especially as restrictions on density are further relaxed and the resumption of normalcy gains steam. Notwithstanding the short-term recovery, Retail remains in a period of secular reorganization, and the sector remains open to disruption for the foreseeable future.5

Like so many industries, Hospitality will also see both subtle and substantial shifts in the post-pandemic era. Oxford Economics reports that gross domestic product grew by 9% in the first quarter of 2021, which has positive implications for the American travel industry. Jan Freitag, National Director for Hospitality Analytics at CoStar, reported that the March 2021 revenue per available room percentage change was “very positive” at 34%.6

We are still far off from “normal,” though an accelerating vaccination rollout brings the promise of a more rapid return to normalcy. As the economy recovers, leaders in the commercial real estate industry must begin to turn their attention to preparing for opportunities presented in the post-pandemic world.

Seizing Our Opportunity

The Census Bureau’s Small Business Pulse Survey (SBPS) measures the effect of changing business conditions during the COVID-19 pandemic on our nation’s small businesses. According to the SBPS, companies are consistently marking up when they expect conditions to normalize. As leaders in the industry, we now have clear opportunities to re-strategize asset attribution and ultimately redefine what post-pandemic success means for commercial real estate.

Source: CoStar7

Looking at history, other crises and external events show that generally, the CRE industry tends to lag the trajectory of the larger economy. But with the far-reaching effects of this pandemic, the CRE industry has felt the effects much earlier. In many ways, the pandemic has accelerated trends already occurring. While there is no specific answer or one-size-fits-all solution at this time, organizations that are able to move nimbly through the phases of recovery and embrace the “next normal” will thrive post-pandemic.

As the economy gains momentum, we will begin to see a split: organizations built to last, and those that are not. Those built to last, like SVN, are using this time to not only learn and emerge stronger, but also to prepare for and shape the future of commercial real estate.

Catalysts to Recovery: The SVN Difference

There are several components of SVN’s DNA working together to pull the future forward. For example:

  • A strong and established brand, foundation, and community backing Advisors, attracting new talent and supporting local independent ownership
  • Information & Fee Sharing: Every Monday, SVN Advisors present new and featured commercial real estate property listings on SVN | Live®. This live property broadcast is open to everyone in the industry.
  • Product Council meetings and collaboration tools for all asset classes such as Industrial, Office, Self Storage, and Healthcare
  • Online and scalable training to expand teams quickly, such as our SVN System for Growth courses and digital onboarding support
  • Advanced digital recruiting tools, such as Mike Lipsey’s System for Success online training for Advisors
  • Consultation support for asset attribution to establish team development

SVN was built to be future-proofed. That’s why, from 2019 through 2020, SVN’s gross commission income grew 3.1%… when everyone else was down. When all publicly traded CRE brokerages were up against double-digit declines — some facing 30% or more in lost revenue — SVN had its best year in company history. Models like SVN, which embrace automation, collaboration and cooperation, are uniquely positioned to take market share in this era of change, as client behaviors and expectations evolve.

The SVN brand offers something completely different from what any local, regional, or national firm is offering. This is the SVN Difference. And this difference is what ultimately creates 9.6% more value for our clients.

The Future Is Now

There is significant hope that 2021 will be a year of earnest recovery. As of the March WSJ Economic Forecasting Survey, on average, leading economists expect the US economy to grow by 6.0%. If reality ends up matching expectations, 2021 will mark the fastest annual growth since 1984.

SVN Advisors are leading the way into the “Next-Normal,” pulling the future forward, enacting change where and when it matters most.

The future is here. Are you ready?

 

 

Endnotes

  1. Census Bureau; through Q4 2020
  2. https://product.costar.com/home/news/19461
  3. https://product.costar.com/home/news/848506453
  4. https://product.costar.com/home/news/1802437521
  5. SVN Asset Class Report, Retail, 2021
  6. https://www.costar.com/article/1537124142/recovery-of-us-hotel-industry-is-firmly-underway
  7. https://product.costar.com/home/news/848506453

MHN Names SVN International Corp. #1 Fastest-Growing Multifamily Property Management Company in 2020

SVN International Corporation (SVNIC), a full-service commercial real estate franchisor of the SVN® brand, was ranked number one on the list of the Fastest-Growing Multifamily Property Management Companies in 2020 by Multi-Housing News (MHN).

The MHN rankings reflect SVNIC’s strategic growth from 2017 through 2019. During this time, SVNIC increased its management portfolio from just under 6,000 units in 2017 to over 18,600 units, marking a remarkable annual portfolio growth rate of 81.6%.

“We are deeply committed to the exponential growth of our customized asset and property management businesses and to delivering a total support system to both our private and institutional clients.” said Kevin Maggiacomo, President & CEO of SVN.

Read the full article HERE.

About SVN:

The SVN organization is a globally recognized commercial real estate entity united by a shared vision of creating value with clients, colleagues, and our communities. The SVN brand is comprised of over 1,600 advisors and staff in more than 200 offices across the globe in six countries. Our brand pillars represent the transparency, innovation, and inclusivity that enables all our advisors to collaborate with the entire real estate industry on behalf of our clients. SVN’s unique Shared Value Network® is just one of the many ways that SVN advisors create amazing value with our clients, colleagues, and communities.  For more information, visit www.svn.com.

All SVN offices are independently owned and operated. To learn more about becoming an SVN commercial real estate business owner, visit http://www.svn.com/franchising-opportunities/.

Spokane, WA | 2016 Top #CRE Markets to Watch: Retail

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 Retail Markets to Watch. Not the largest or the most actively contested markets, the 2016 Retail 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 Retail Market to Watch: Spokane, WA

Spokane - Top Retail Market to WatchThe economy of Spokane is attempting to recreate itself from a natural products producer to a more high tech and business-focused cluster but, so far, the results remain mixed. Unemployment has grown recently to 7.7% in January ‘16 but new job creation is occurring at a 1.7% annualized rate, according to the Bureau of Labor Statistics. Top sectors adding jobs include Information, Professional and Business Services, and Educational and Health Services, which are growing at annualized rates of 13.8%, 6.3%, and 3.6%, respectively. Population grew 4.2% from 2010 to 2015, according the Census Bureau, which means that overall demand for retail could grow. Still, sustained reductions in unemployment will need to be seen for significant growth to occur. As the tech industry grows, this is possible.

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 retail markets, download the full version of the 2016 Retail Market Outlook report here.

2016 Retail Market Outlook

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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

[bctt tweet=”San Francisco, CA is one of 2016’s top office #CRE markets to watch.” username=”svnic”]

Tampa, FL | 2016 Top #CRE Markets to Watch: Multifamily

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 Multifamily Markets to Watch. Not the largest or the most actively contested markets, the 2016 Multifamily 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 Multifamily Market to Watch: Tampa, FL

Tampa has recovered significantly after experiencing deep impacts from the recession and is now growing jobs at an annualized pace of 3.6% with an unemployment rate of 4.8% as of January ‘16, according to the Bureau of Labor Statistics. Job growth also helped sustain population growth of 6.8% from 2010 to 2014, according to the Census Bureau. This growth has caused the multifamily sector in Tampa to expand with growing rents, falling occupancies, and lots of new supply. 2016 should bring approximately 5% rent growth with stable occupancy levels. The city is approximately 50% rental housing based and should demand more units as economic expansion continues. Top sectors for employment growth include Construction, Professional and Business Services, Leisure and Hospitality, and Financial Activities which have annualized growth rates of 7.1%, 7.1%, 6.6%, 3.4%, respectively.

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 multifamily markets, download the full version of the 2016 Multifamily Market Outlook report here.

 

[bctt tweet=”Tampa, FL is one of 2016’s top multifamily #CRE markets to watch.” username=”svnic”]

St. Louis, MO | 2016 Top #CRE Markets to Watch: Industrial

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 Industrial Markets to Watch. Not the largest or the most actively contested markets, the 2016 Industrial 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 Industrial Market to Watch: St. Louis, MO

St. Louis - Top Industrial Markets to WatchThe St. Louis economy has experienced strong growth since the recession and now features a 5.2% unemployment rate as of January ‘16 with modest job growth of 1.2% annualized. The diverse economic base includes manufacturing of food and agricultural products that are relatively immune to cyclical forces and thus stabilize the St. Louis industrial space market. Still, the key industrial sector of Manufacturing is losing jobs at a 1.3% annualized pace while Trade, Transportation, and Utilities grows at a nearly flat rate of 0.3% annualized. Overall, the stable nature of the industries operating in St. Louis, many with corporate HQs, and its strong river, rail, and air linkages should allow its industrial market to remain healthy 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 industrial markets, download the full version of the 2016 Industrial Market Outlook report here.

2016 Industrial Market Outlook

[bctt tweet=”St. Louis, MO is one of 2016’s top industrial #CRE markets to watch.” username=”svnic”]

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

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 Retail Markets to Watch. Not the largest or the most actively contested markets, the 2016 Retail 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 Retail Market to Watch: San Francisco, CA

San Francisco - Top Retail Market to WatchSan Francisco has been the iconic American boomtown for centuries and this trend continues today as technology firms have helped lead record job growth that has brought the unemployment rate down to 3.9% in January ‘16 as employment continues to grow at a 3.6% annualized rate, according to the Bureau of Labor Statistics. San Francisco is also a major port and tourist destination, thus the demand for retail real estate should grow strongly in 2016 and beyond. According to the Census Bureau, population has grown by 5.9% from 2010 to 2014, which is quite impressive given the limited land mass of the city and topography of the Bay Area. As rents and home prices rise, expect San Francisco retail real estate to continue gentrifying as well, causing rent spikes in many sub markets.

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 retail markets, download the full version of the 2016 Retail Market Outlook report here.

2016 Retail Market Outlook

[bctt tweet=”San Francisco, CA is one of 2016’s top retail #CRE markets to watch.” username=”svnic”]

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

[bctt tweet=”San Antonio, TX is one of 2016’s top office #CRE markets to watch.” username=”svnic”]

Seattle, WA | 2016 Top #CRE Markets to Watch: Multifamily

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 Multifamily Markets to Watch. Not the largest or the most actively contested markets, the 2016 Multifamily 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 Multifamily Market to Watch: Seattle, WA

Seattle - Top Multifamily Market to WatchSeattle is one of the fastest growing cities on the West Coast, with a population that grew 9.8% from 2010 to 2014, according the Census Bureau. Job growth continues at an annualized pace of 3.0% while unemployment has been stable with the latest reading in January ‘16 of 5.6%, according to the Bureau of Labor Statistics. Seattle is an expensive city to live in and as such approximately 54% of the housing units are rentals, according to the Census Bureau. The need for ample housing is real and multifamily assets should perform well for 2016 and beyond. Rents are expected grow over 5% as new supply hits record highs to fill new demand. The best sectors for job creation include Information, Leisure and Hospitality, Trade, Transportation, and Utilities, and Financial Activities, which are growing at 8.1%, 5.0%, 4.2%, and 4.1% annualized rates, respectively.

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 multifamily markets, download the full version of the 2016 Multifamily Market Outlook report here.

2016 Multifamily Market Outlook

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Seattle, WA | 2016 Top #CRE Markets to Watch: Industrial

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 Industrial Markets to Watch. Not the largest or the most actively contested markets, the 2016 Industrial 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 Industrial Market to Watch: Seattle, WA

Seattle - Top Industrial Market to WatchSeattle has experienced significant job growth since the recession and continues to add jobs at an annualized rate of 3.0%, keeping unemployment stable at 5.6% as of January ‘16, according to the BLS. As Seattle hosts major West Coast ports, a major airport, and excellent rail linkages, trade and distribution activities dominate the industrial real estate market. Employment in the Trade, Transportation, and Utilities sector is growing at an annualized rate of 4.2%, making up for losses in the Manufacturing sector that is contracting at an annualized rate of –0.9%. Overall, the Puget Sound ports and infrastructure should drive robust demand for industrial real estate as more and more ship traffic is routed up north from congested Long Beach, California.

Advisor Insights: SVN | Raven

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

  • Tear down old outdated commercial space for new modern distribution centers
  • HUB/community space on outdated office/industrial flex
  • Owner-user acquisition buildings for assemblage for larger projects

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 industrial markets, download the full version of the 2016 Industrial Market Outlook report here.

2016 Industrial 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

[bctt tweet=”Minneapolis, MN is one of 2016’s top office #CRE markets to watch.” username=”svnic”]

San Jose, CA | 2016 Top #CRE Markets to Watch: Multifamily

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 Multifamily Markets to Watch. Not the largest or the most actively contested markets, the 2016 Multifamily 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 Multifamily Market to Watch: San Jose, CA

San Jose - Top Multifamily Market to WatchSan Jose is one of the hottest cities in the Bay Area and thus has experienced very strong employment growth since 2011 which has brought the unemployment rate down to 3.9% as of January ‘16 while jobs are still being created at the robust pace of 3.8% annualized according to the Bureau of Labor Statistics. Population growth is also significant at 6.6% from 2010 to 2014 as people find this market relatively more affordable. The San Jose housing stock is traditionally owner oriented with only 43% used for rentals. Given the rate of regional growth, local multifamily assets are very well positioned to pick up demand from surrounding areas a well as localized growth. Rent growth is expected to exceed 5% with relatively low new supply in 2016. Top sectors in job creation include Construction, Information, and Professional and Business Services with annualized growth rates of 10.3%, 8.4%, and 6.8%, respectively.

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 multifamily markets, download the full version of the 2016 Multifamily Market Outlook report here.

2016 Multifamily Market Outlook

[bctt tweet=”San Jose, CA is one of 2016’s top multifamily #CRE markets to watch.” username=”svnic”]

Pittsburgh, PA | 2016 Top #CRE Markets to Watch: Industrial

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 Industrial Markets to Watch. Not the largest or the most actively contested markets, the 2016 Industrial 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 Industrial Market to Watch: Pittsburgh, PA

Pittsburgh - top industrial markets to watchThe Pittsburgh economy has more or less stabilized after the recession and massive losses to its manufacturing and steel production base. Today the unemployment rate sits at 5.5% as of January ‘16 but job creation is effectively flat at a literal 0.0% rate of growth. The industrial real estate market of Pittsburgh is highly influenced by oil and gas production as well as the steel industry, both of which have potential to see long-term losses. Key industrial sectors are losing jobs, including Manufacturing and Trade, Transportation, and Utilities which are declining at annualized rates of –3.4% and –0.4%, respectively. Thankfully, Pittsburgh is transforming itself into a more research and high-tech focused economy which should grow overall jobs and ultimately benefit the industrial sector. Further, this trend should cause more vacant industrial buildings to be repurposed and redeveloped, helping industrial landlords overall.

Advisor Insights: SVN | Three Rivers Commercial Advisors

SVN’s Pittsburgh-based Advisors at SVN | Three Rivers Commercial Advisors have some industrial market highlights to share. Here’s what to look out for in the Pittsburgh industrial market in 2016:

  • Vacancy rate is 6.2% and expected to stay the same or slight decrease
  • Rental Rate average is $5.74 / SF which is trending upwards and expected to stay the same or increase
  • Positive absorption expected for both flex and warehouse space

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 industrial markets, download the full version of the 2016 Industrial Market Outlook report here.

2016 Industrial Market Outlook

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Portland, OR | 2016 Top #CRE Markets to Watch: Retail

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 Retail Markets to Watch. Not the largest or the most actively contested markets, the 2016 Retail 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 Retail Market to Watch: Portland, OR

Portland - top retail market to watchPortland has experienced surging new employment in 2015 that has brought the unemployment rate down to 4.7% as of January ‘16, while new jobs are being continually added at an annualized rate of 3.1%, according to the Bureau of Labor Statistics. This is due to a well-diversified economy and quality of life that will also fuel growth in Portland’s retail real estate market. Top sectors for growth include Information, Leisure and Hospitality, Education and Health Services, and Construction, all growing at annualized rates of 9.4%, 4.6%, 4.5%, and 3.9%, respectively. As the population continues to grow as it has done by 6.1% from 2010 to 2014, according the Census Bureau, there will be greater needs for all real estate including retail establishments in 2016 and beyond.

Advisor Insights: SVN | Bluestone & Hockley in Portland, OR

SVN’s Portland-based Advisors at SVN | Bluestone & Hockley have some retail market highlights to share. Here’s what to look out for in Portland’s retail market in 2016:

  • Increase in on-market for sale properties
  • Decline in available SF for lease
  • Gradual increase of retail lease rate

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 retail markets, download the full version of the 2016 Retail Market Outlook report here.

2016 Retail Market Outlook

[bctt tweet=”Portland, OR is one of 2016’s top retail #CRE markets to watch.” username=”svnic”]

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

[bctt tweet=”Houston, TX is one of 2016’s top office #CRE markets to watch.” username=”svnic”]

Reno, NV | 2016 Top #CRE Markets to Watch: Multifamily

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 Multifamily Markets to Watch. Not the largest or the most actively contested markets, the 2016 Multifamily 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 Multifamily Market to Watch: Reno, NV

Reno - top multifamily markets to watchReno is experiencing sustained gains in employment with a 4.4% annualized rate after being severely impacted by the past recession; unemployment has improved dramatically and now sits at a still relatively high 6.2% as of January ‘16, according to the Bureau of Labor Statistics. Population has grown robustly with a 4.9% increase from 2010 to 2014, according to the Census Bureau. As is common with tourist market economies, the percentage of city housing used for rental purposes is high at 53% meaning that job growth will quickly mean growth for the multifamily sector. The city’s economy is rapidly diversifying with the biggest gains coming from Construction, Professional and Business Services, Financial Activities, and Education and Health Services with annualized growth rates of 9.6%, 9.5%, 5.2%, and 5.0%, respectively.

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 multifamily markets, download the full version of the 2016 Multifamily Market Outlook report here.

2016 Multifamily Market Outlook

[bctt tweet=”Reno, NV is one of 2016’s top multifamily #CRE markets to watch.” username=”svnic”]

Memphis, TN | 2016 Top #CRE Markets to Watch: Industrial

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 Industrial Markets to Watch. Not the largest or the most actively contested markets, the 2016 Industrial 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 Industrial Market to Watch: Memphis, TN

Memphis - top industrial market to watchThe Memphis economy has been slowly growing and recovering since the recession and stands today with 5.6% unemployment as of January ‘16, with modest annualized job gains of 1.7%, according to the Bureau of Labor Statistics. Its strongest industrial segment and in fact strongest employment segment overall is Trade, Transport, and Utilities, which is expanding at an annualized rate of 4.2%. Manufacturing is also adding jobs at 0.7%. Given that Memphis is located in the approximate population weighted center of the country, it is an ideal location to serve for e-commerce and other direct to consumer distribution businesses. Thus, the Memphis industrial market may be one of the largest benefactors of the rise of online shopping and will likely continue to expand 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 industrial markets, download the full version of the 2016 Industrial Market Outlook report here.

2016 Industrial Market Outlook

[bctt tweet=”Memphis, TN is one of 2016’s top industrial #CRE markets to watch.” username=”svnic”]

San Diego, CA | 2016 Top #CRE Markets to Watch: Retail

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 Retail Markets to Watch. Not the largest or the most actively contested markets, the 2016 Retail 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 Retail Market to Watch: San Diego, CA

San Diego - top retail market to watchSan Diego has steadily grown since the recession with now record levels of employment that have brought the unemployment rate down to 4.7% in January ‘16, while new jobs continue to be added at an annualized rate of 2.8%, according to the Bureau of Labor Statistics. Population has also grown 6.1% from 2010 to 2014 according to the Census Bureau, as people choose San Diego for its high quality of life and climate. Its diverse economy from military and shipping to research and finance has allowed demand and fundamentals for retail real estate to grow with a trend that should persist through 2016 and beyond. The top sectors for job gains are Construction, Education and Health Services, Professional and Business Services, and Manufacturing, with annualized growth rates of 7.4%, 3.9%, 3.6%, and 3.4%, respectively.

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 retail markets, download the full version of the 2016 Retail Market Outlook report here.

2016 Retail Market Outlook

[bctt tweet=”San Diego, CA is one of 2016’s top retail #CRE markets to watch.” username=”svnic”]

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

[bctt tweet=”Ft. Lauderdale, FL is one of 2016’s top office #CRE markets to watch.” username=”svnic”]

Portland, OR | 2016 Top #CRE Markets to Watch: Multifamily

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 Multifamily Markets to Watch. Not the largest or the most actively contested markets, the 2016 Multifamily 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 Multifamily Market to Watch: Portland, OR

Portland, OR - top multifamily market to watchPortland has experienced rapid employment growth in 2015, bringing the unemployment rate down to 4.7% as of January ‘16 while sustaining new job creation at a rate of 3.1%, according to the Bureau of Labor Statistics. Population in the city grew by 6.1% between 2010 and 2014 according to the Census Bureau who also reports that approximately 47% of the housing stock is used for rentals. Portland is a relatively high priced market for the nation but still affordable for a major West Coast metro with an excellent quality of life. Leading employment sectors include Information, Leisure and Hospitality, and Education and Health Services growing at 9.4%, 4.6%, and 4.5% respective annualized rates. These dynamics should lead to strong performance of the multifamily sector in 2016 and beyond with rents growing over 10% this year as new supply remains relatively moderate.

Advisor Insights: SVN | Bluestone & Hockley

SVN’s Portland-based Advisors at SVN | Bluestone & Hockley have some multifamily market highlights to share. Here’s what to look out for in Portland’s multifamily market in 2016:

  • More units coming online
  • Price leveling off
  • More outside of the market investors coming in

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 multifamily markets, download the full version of the 2016 Multifamily Market Outlook report here.

2016 Multifamily Market Outlook

[bctt tweet=”Portland, OR is one of 2016’s top multifamily #CRE markets to watch.” username=”svnic”]

Los Angeles, CA | 2016 Top #CRE Markets to Watch: Industrial

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 Industrial Markets to Watch. Not the largest or the most actively contested markets, the 2016 Industrial 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 Industrial Market to Watch: Los Angeles, CA

Los Angeles - top industrial market to watchLos Angeles is one of the largest, most dynamic cities in the United States and its economy has fully recovered, with a normalized level of unemployment at 5.5% as of January ‘16 and annualized total employment growth of 2.3%, according to the Bureau of Labor Statistics. Its industrial space market is one of the best performing in the nation due to the growth in container and freight traffic from the port as well as inbound air cargo from Asia. The Trade, Transportation, and Utilities sector is growing at an annualized rate of 1.7%, meaning that further growth and expansion is possible. Of course, the reliance on trade could cause a contraction in the industrial sector with global pressures, but this is unlikely as much of the trade and distribution are import goods that will benefit from a strong US dollar.

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 industrial markets, download the full version of the 2016 Industrial Market Outlook report here.

2016 Industrial Market Outlook

[bctt tweet=”Los Angeles, CA is one of 2016’s top industrial #CRE markets to watch.” username=”svnic”]

Orlando, FL | 2016 Top #CRE Markets to Watch: Retail

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 Retail Markets to Watch. Not the largest or the most actively contested markets, the 2016 Retail 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 Retail Market to Watch: Orlando, FL

Orlando - top retail market to watchOrlando continues to be one of the fastest growing markets in the nation, fueled by record tourism and new business openings and relocations. Unemployment remains stable at 4.7% as new jobs are being created at a 4.9% annualized rate, according to the Bureau of Labor Statistics. Population has also boomed by 9.9% from 2010 to 2014, according to the Census Bureau, creating the demand for more retail real estate. Top employment sectors include Construction, Professional and Business Services, Manufacturing, Educational and Health Services, and Leisure and Hospitality, with annualized growth rates of 14.5%, 8.6%, 7.3%, 4.6%, and 4.4%, respectively. This broad-based growth will enhance the health of the retail real estate sector in 2016 and beyond for both tourist-focused and resident-focused establishments.

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 retail markets, download the full version of the 2016 Retail Market Outlook report here.

2016 Retail Market Outlook

[bctt tweet=”Orlando, FL is one of 2016’s top retail #CRE markets to watch.” username=”svnic”]

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

[bctt tweet=”Denver, CO is one of 2016’s top office #CRE markets to watch.” username=”svnic”]

Phoenix, AZ | 2016 Top #CRE Markets to Watch: Multifamily

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 Multifamily Markets to Watch. Not the largest or the most actively contested markets, the 2016 Multifamily 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 Multifamily Market to Watch: Phoenix, AZ

Phoenix - top multifamily market to watchPhoenix experienced significant gains in overall employment in 2015 that moved the number of jobs significantly above pre-recession peaks as unemployment fell to 4.6% in January ‘16 with continued annualized employment gains of 3.6%. The population grew by 6.2% from 2010 to 2014, according to the Census Bureau, helping to fuel new demand for apartment units. The city utilizes approximately 46% of its housing units as rentals and has relative affordability with high quality of life making the market a prime one to grow in 2016 and beyond, with rents expected to grow over 5% this year. The leading employment sectors are Information, Construction, Financial Activities, Education and Health Services, and Professional and Business Services, growing at annualized rates of 7.6%, 6.3%, 5.3%, 5.2%, and 5.1%, respectively.

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 multifamily markets, download the full version of the 2016 Multifamily Market Outlook report here.

2016 Multifamily Market Outlook

[bctt tweet=”Phoenix, AZ is one of 2016’s top multifamily #CRE markets to watch.” username=”svnic”]

Knoxville, TN | 2016 Top #CRE Markets to Watch: Industrial

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 Industrial Markets to Watch. Not the largest or the most actively contested markets, the 2016 Industrial 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 Industrial Market to Watch: Knoxville, TN

Knoxville - top industrial market to watchThe Knoxville economy is extremely steady given its diverse economic base and thus experienced relatively low effects of the recession. The city now has a 4.5% unemployment rate as of January ‘16, with overall employment growing at an annualized rate of 2.5%, according to the Bureau of Labor Statistics. The industrial sectors of Knoxville are all showing marked strength, including Manufacturing and Trade, Transport, and Utilities growing at annualized rates of 4.5% and 4.1%, respectively. Additionally, the Mining, Logging, and Construction sector is growing at a rapid 10.2% annualized rate, further fueling the market. The mix of defense, research, and industrial manufacturers gives Knoxville strong power to grow its industrial real estate 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 industrial markets, download the full version of the 2016 Industrial Market Outlook report here.

2016 Industrial Market Outlook

[bctt tweet=”Knoxville, TN is one of 2016’s top industrial #CRE markets to watch.” username=”svnic”]

Nashville, TN | 2016 Top #CRE Markets to Watch: Retail

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 Retail Markets to Watch. Not the largest or the most actively contested markets, the 2016 Retail 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 Retail Market to Watch: Nashville, TN

Nashville - top retail market to watchNashville’s economy continues to boom, as employment sets new record highs with continued 4.0% annualized growth that has brought the unemployment rate to a low of 3.7% as of January ‘16, according to the Bureau of Labor Statistics. This corresponds with a 6.7% increase in population from 2010 to 2014, according to the Census Bureau. This growth is putting pressure on retail real estate as fundamentals improve in face of steady growth; a trend expected to persist in 2016 and beyond. The fastest growing employment sector is Mining, Logging, and Construction followed by Professional and Business Services, then Financial Activities and Information, with annualized growth rates of 9.4%, 8.7%, 4.5%, and 4.4%, respectively. This type of broad-based job growth is sure to boost all real estate sectors including retail.

Advisor Insights: SVN | The Genesis Group in Nashville, TN

SVN’s Nashville-based Advisors at SVN | The Genesis Group have some retail market highlights to share. Here’s what to look out for in Nashville’s retail market in 2016:

  • Strong demand for retail space
  • Declining vacancy
  • High rents
  • Competition for space
  • Very little inventory

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 retail markets, download the full version of the 2016 Retail Market Outlook report here.

2016 Retail Market Outlook

[bctt tweet=”Nashville, TN is one of 2016’s top retail #CRE markets to watch.” username=”svnic”]

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

[bctt tweet=”Dallas, TX is one of 2016’s top office #CRE markets to watch.” username=”svnic”]

Philadelphia, PA | 2016 Top #CRE Markets to Watch: Multifamily

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 Multifamily Markets to Watch. Not the largest or the most actively contested markets, the 2016 Multifamily 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 Multifamily Market to Watch: Philadelphia, PA

Philadelphia - top multifamily market to watchJob growth in Philadelphia has brought the city back above pre-recession employment levels as unemployment stays steady at 4.8% as of January ‘16 with modest annualized employment growth of 2.1%, according to the Bureau of Labor Statistics. Population growth has been below the national average as the city only gained 2.2% from 2010 to 2014, according to the Census Bureau. Accordingly, demand for new apartment units is modest compared to other metros of similar size; yet the city does have a relatively high use of housing units as rentals at approximately 47%. Philadelphia does have an advantage in affordability, especially compared with other East Coast metros, and thus has growth potential with rents forecast to grow by over 3% in 2016. The city’s top sectors for job growth include Mining, Logging, and Construction as well as Professional and Business Services where are expanding at annualized rates of 8.2% and 3.7%, respectively.

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 multifamily markets, download the full version of the 2016 Multifamily Market Outlook report here.

2016 Multifamily Market Outlook

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Greenville-Spartanburg, SC | 2016 Top #CRE Markets to Watch: Industrial

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 Industrial Markets to Watch. Not the largest or the most actively contested markets, the 2016 Industrial 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 Industrial Market to Watch: Greenville-Spartanburg

Greenville-Spartanburg - top industrial market to watchThe Greenville-Spartanburg region has experienced significant gains in its labor force, and overall employment is growing at a 2.6% annualized rate with unemployment holding steady at 4.9%, according to the Bureau of Labor Statistics. Key industrial sectors of Trade, Transport, and Utilities and Manufacturing are growing at annualized rates of 2.6% and 1.3%, respectively, setting up the industrial market for gains in 2016 and beyond. As South Carolina is well located for distribution in the Southeast, connected to ports, and unfriendly to labor unions, it is likely to continue to see expansion in its industrial sectors including those of Greenville-Spartanburg. Low cost of living and operating costs also serve to boost overall business development.

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 industrial markets, download the full version of the 2016 Industrial Market Outlook report here.

2016 Industrial Market Outlook

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Miami, FL | 2016 Top #CRE Markets to Watch: Retail

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 Retail Markets to Watch. Not the largest or the most actively contested markets, the 2016 Retail 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 Retail Market to Watch: Miami, FL

Miami - top retail market to watchAfter facing a deep real estate and economic recession, Miami has fully recovered, has more employment than ever, and continues to grow at a 2.9% annualized pace, while unemployment remains stable at 5.2% as of January ‘16, according to the Bureau of Labor Statistics. This growth has been led by a new construction boom fed by foreign investment that has construction jobs growing at a 10.5% annualized rate, making it the far and away fastest growing sector. Population has also grown by 7.8% from 2010 to 2015, according to the Census Bureau, and is expected to continue growing, fueling the need for more retail development. Miami’s joint tourism, retirement, and business growth should force rental rates up and vacancies down in the retail real estate sector for 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 retail markets, download the full version of the 2016 Retail Market Outlook report here.

2016 Retail Market Outlook

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Charlotte, NC | 2016 Top #CRE Markets to Watch: Multifamily

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 Multifamily Markets to Watch. Not the largest or the most actively contested markets, the 2016 Multifamily 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 Multifamily Market to Watch: Charlotte, NC

Charlotte - top multifamily market to watchThe multifamily market in Charlotte has experienced strong growth in demand as the city has gained 10.1% in population from 2010 to 2014, according to the Census Bureau. This has been fueled by significant job growth that has set new records substantially above pre-recession peaks, leading the present unemployment rate to sit at 5.3% as of January ‘16 with new job creation occurring at an annualized rate of 2.8%, according to the Bureau of Labor Statistics. Approximately 45% of the city’s housing stock is renter occupied. Thus, a good deal of the new population is likely to demand an apartment. Further, gross rents are below national averages, making Charlotte affordable and capable of seeing meaningful rent growth. New supply has grown approximately 4% in 2015 which will lower rent growth slightly in 2016, but still likely to be robust and above 4%. Many sectors are adding jobs at annualized rates above 4%, including Financial Activities, Professional and Business Services, and Leisure and Hospitality. However, this city does face a unique risk to continued growth from the new “bathroom” law, perceived very negatively by many; this could jeopardize new job growth and thus the market if firms choose to relocate or otherwise curtail operations in the state.

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 multifamily markets, download the full version of the 2016 Multifamily Market Outlook report here.

2016 Multifamily Market Outlook

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

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 Industrial Markets to Watch. Not the largest or the most actively contested markets, the 2016 Industrial 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 Industrial Market to Watch: Dallas, TX

Dallas - top industrial market to watchThe Dallas economy remains one of the strongest of the major metros in the nation with unemployment at 3.8% as of January ‘16 and steadily rising total employment at a 3.4% annualized rate, according to the Bureau of Labor Statistics. The fastest growing sector of employment in Dallas is an industrial space using Trade, Transport, and Utilities, which is growing at an annualized rate of 5.2%. This is the sector, where most of the 2016 and beyond gains in the industrial space market will be generated. Dallas has unparalleled airport and rail access making it an ideal business and distribution hub. In fact, the area surrounding the DFW airport is best poised to expand. Manufacturing is the weakest sector declining at a –1.6% annualized rate. This sector touches oil and gas production and exploration, and is thus most at risk for declines 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 industrial markets, download the full version of the 2016 Industrial Market Outlook report here.

2016 Industrial Market Outlook

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Las Vegas, NV | 2016 Top #CRE Markets to Watch: Retail

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 Retail Markets to Watch. Not the largest or the most actively contested markets, the 2016 Retail 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 Retail Market to Watch: Las Vegas, NV

Las Vegas - top retail market to watchAs tourism growth has once again led Las Vegas to new heights in overall employment, the unemployment rate is still falling as it sits at 6.5% as of January ‘16 while jobs are being added at a 2.5% annualized rate, according to the Bureau of Labor Statistics. Construction is the fastest growing employment sector at an 11.0% annualized rate followed by Education and Health Services at 8.1%. Las Vegas took a pause in population growth due to the recession but the pace is likely to grow in 2016 and beyond; still, the city grew by 5.0% from 2010 to 2014, according to the Census Bureau. Growth in tourism will spur the need for tourist-focused retail in popular locations like The Strip; however, overall growth will also increase demand for retail to service the local population. Over time, Las Vegas is likely to diversify from tourism and become a more balanced economy.

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 retail markets, download the full version of the 2016 Retail Market Outlook report here.

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

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 Multifamily Markets to Watch. Not the largest or the most actively contested markets, the 2016 Multifamily 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 Multifamily Market to Watch: Denver, CO

Denver - top multifamily market to watchThe Denver multifamily market has experienced significant additions of new supply as its population has grown 10.6% from 2010 to 2014, according to the Census Bureau. Further, the employment market is outstanding with 3.0% unemployment as of January ‘16 and annualized job growth of 2.5%, according to the Bureau of Labor Statistics. Denver features a larger renter population with approximately 50% of its metro’s housing units used for rental purposes; still rental rates are relatively affordable for a metro of its size, giving it room to grow. Top sectors for employment growth include Leisure and Hospitality, Financial Activities, Manufacturing, and Professional and Business Services growing at annualized rates of 6.0%, 3.9%, 3.5%, and 3.2%, respectively. As such, rent growth could hit 7% in 2016.

Advisor Insights: SVN | Denver Commercial

SVN’s Advisors at SVN | Denver Commercial have some multifamily market highlights to share. Here’s what to look out for in Denver’s multifamily market in 2016:

  • As population grows, (over 100,000 additional people since 2014), demand grows likewise for multifamily.
  • Household formation is growing with a younger demographic makeup in Denver. The CBD area alone now is housing a population of 90,000 residents, mostly in multifamily buildings.
  • Rents have risen significantly over the past few years but are now reaching affordability limits.
  • Renters are demanding fully amenitized properties when higher rents are asked by landlords.
  • Expect to see more micro-apartments to address affordability issues, especially in the CBD area.
  • Vacancy rates are now approaching more “normalized” conditions of 5-7%, versus virtually nil in the last couple years. This is due to increased delivery of new apartment units to the region, somewhat outpacing demand.

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 multifamily markets, download the full version of the 2016 Multifamily Market Outlook report here.

2016 Multifamily Market Outlook

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Charlotte, NC | 2016 Top #CRE Markets to Watch: Retail

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 Retail Markets to Watch. Not the largest or the most actively contested markets, the 2016 Retail 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 Retail Market to Watch: Charlotte, NC

Charlotte - top retail market to watchCharlotte has expanded its employment base steadily since the recession bottomed in 2010 and currently has a relatively low 5.3% unemployment rate, as of January ‘16, and 2.8% annualized growth of new jobs, according to the Bureau of Labor Statistics. The region has also grown population by 10.1% from 2010 to 2014 according to the Census Bureau, making it prime for expansion and development of retail real estate. Major growing employment segments include Mining, Logging, and Construction, Financial Activities, and Leisure and Hospitality with 6.4%, 4.8%, and 4.6% annualized growth, respectively. As Charlotte continues to be a popular place to work and live, more firms are likely to enter the market, including those seeking to establish corporate headquarters. Despite these positive forces, North Carolina’s recently enacted “bathroom law” threatens to reverse economic growth as businesses and consumers look elsewhere to avoid the perceived discriminatory law; this could cause pain to the retail sector for the rest of 2016 and beyond if not fixed.

Advisor Insights: SVN | Percival Partners in Charlotte, NC

SVN’s Charlotte-based Advisors at SVN | Percival Partners have some retail market highlights to share. Here’s what to look out for in Charlotte’s retail market in 2016:

  • Increasing property values
  • Ongoing new development of grocery anchored centers
  • New grocery stores entering the market
  • Target will start expanding again
  • Continue to see high demand for investment properties

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 retail markets, download the full version of the 2016 Retail Market Outlook report here.

2016 Retail 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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Boston, MA | 2016 Top #CRE Markets to Watch: Multifamily

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 Multifamily Markets to Watch. Not the largest or the most actively contested markets, the 2016 Multifamily 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 Multifamily Market to Watch: Boston, MA

Boston top multifamily marketBoston’s economy has experienced significant job growth such that its unemployment rate is now 4.0% as of January ‘16 and new jobs are being created at a 1.4% annualized rate, according to the Bureau of Labor Statistics. Further, population has grown 6.2% from 2010 to 2014, according to the Census Bureau, and has thus significantly increased the demand for rental housing in the metropolitan region. Bostonians are highly predisposed to renting as over 65% of the housing units in the city are rentals according to Census data; thus prolonged population and job growth will place great pressure on rents which could grow over 6% in 2016 and keep occupancies above 97% while new supply is likely to remain less than 2% . The top sectors for job growth include Financial Activities and Education and Health Services which are growing at 3.1% and 2.9% annualized rates, respectively.

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 multifamily markets, download the full version of the 2016 Multifamily Market Outlook report here.

2016 Multifamily Market Outlook

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Albuquerque, NM | 2016 Top #CRE Markets to Watch: Industrial

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 Industrial Markets to Watch. Not the largest or the most actively contested markets, the 2016 Industrial 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 Industrial Market to Watch: Albuquerque, NM

Albuquerque top industrial marketAlbuquerque’s overall economy has remained fairly stable with a slowly falling, above national average level of unemployment at 5.8% as of January ‘16, according to the Bureau of Labor Statistics. Key industrial sectors have been losing employees and thus may threaten to soften the industrial space market; these include Manufacturing and Trade, Transportation, and Utilities which are contracting at –2.5% and –0.9% annualized rates, respectively. As much of the economic and industrial base of Albuquerque centers on high tech, research, defense, and other manufacturing, the industrial sector should remain very stable on a relative basis. Given low levels of new supply, growth in fundamentals could also occur in 2016 as the market is not over-supplied.

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 industrial markets, download the full version of the 2016 Industrial Market Outlook report here.

2016 Industrial Market Outlook

[bctt tweet=”Albuquerque, NM is one of 2016’s top industrial #CRE markets to watch.” username=”svnic”]

Austin, TX | 2016 Top #CRE Markets to Watch: Retail

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 Retail Markets to Watch. Not the largest or the most actively contested markets, the 2016 Retail 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 Retail Market to Watch: Austin, TX

Austin - top retail market to watchRetail real estate should perform well in Austin in 2016 and beyond, as this dynamic economy continues to grow and diversify. According to the Census Bureau, the population of Austin has grown 12.5% from 2010 to 2014. Not surprisingly, the economy looks stellar with a 3.2% unemployment rate as of January ‘16 and jobs are growing at 4.7% annually, according to the Bureau of Labor Statistics. The best sectors for job growth are Mining, Logging, and Construction and Leisure and Hospitality, growing at 11.0% and 9.2% annualized rates, respectively. These forces will keep new residents locating in the metro region and businesses expanding. Retail demand will follow the population and should continue expanding in 2016 with ever-increasing fundamentals.

Advisor Insights: SVN | Tamarack in Austin, TX

SVN’s Austin-based Advisors at SVN | Tamarack have some retail market highlights to share:

Gateway Cities like Austin continue to benefit from diverse job creation ranging from service jobs to higher-end STEM (science, technology, engineering and math). It remains an attractive place to live for all generations. Due to the continued numbers of people moving to Austin all property types are attractive but retail properties will continue to be the most favorable investment type.

Austin has a tight market for space so we will see most new construction in sub-markets of Austin such as Lakeway, Leander and Cedar Park.

  • With average rental rates averaging $20 – $23.50 per square foot, rates are expected to increase by more than 4% by the end of 2016.
  • Values in the retail market are expected to increase by 2% – 3.9% by year end.
  • Absorption has been positive for the previous five years and is expected to increase to an estimated 350,000 square feet within 2016. With slightly more than 300,000 square feet of retail space expected to be constructed by the end of 2016 the occupancy rate will also increase above its current 94% rate. Retail properties that are under construction, planned and proposed represent a 3% growth to the current Austin market.
  • Cap rates are currently 6.8% – 7% and are expected to stay relatively flat for the next 6 months.

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 retail markets, download the full version of the 2016 Retail Market Outlook report here.

2016 Retail Market Outlook

[bctt tweet=”Austin, TX is one of 2016’s top retail #CRE markets to watch.” username=”svnic”]

SVN Releases 2016 CRE Market Outlook Reports

New Updates on Trends in Top Markets

This week SVN released the 2016 Market Outlook Reports as a way to update the CRE industry on current trends. Teaming up with the Lakemont Group, Real Capital Analytics, and REIS, SVN put together reports detailing today’s economic conditions and how they impact commercial real estate. These reports also highlight top markets to watch across the U.S., citing cities such as Chicago and Atlanta that CRE professionals should keep an eye on. Broken up into four major asset classes – industrial, multifamily, office, and retail – these reports provide useful insights as we head into the second half of 2016.

Highlights from Each Report Include:

Industrial

Chicago Market Outlook Reports
Chicago, IL
  • Global pressures weigh on growth
  • Net absorption strong as vacancy falls
  • Fundamentals improve for all industrial sectors
  • Demand growth persists
  • Yield seeking investors discover industrial properties
  • Warehouse is the storefront of tomorrow

Multifamily

  • New supply meeting demand
  • Rent growth fuels supply expansion
  • Class ‘A’ leads in rent growth, ‘B/C’ in occupancy
  • Record households and jobs increase demand growth
  • Low cap rates engender price risk fears
  • Baby Boomers may form next rental wave
Atlanta Market Outlook Reports
Atlanta, GA

Office

  • Slow growth and steady gains
  • Record rents amidst still high vacancies
  • ‘B/C’ holds steady while ‘A’ gains
  • Domestic strength and global uncertainty
  • Wide spreads indicate low risk
  • Return of the private office is possible

Retail

  • Discovering a new normal
  • High vacancies restrict the need for new supply
  • Neighborhood centers make gains on power centers
  • Consumer segment continues to grow
  • Opportunities for mispriced assets exist
  • Housing reconstruction to spur retail demand

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.

 

CRE Market Outlook

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San Francisco, CA | 2015 Top #CRE Markets to Watch: Multifamily

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 Multifamily Markets to Watch. Not the largest or the most actively contested markets, the 2015 Multifamily 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 Multifamily Market to Watch: San Francisco, CA

San Francisco: 2015 Multifamily Markets to WatchSan Francisco’s tech industry is booming, bringing with it jobs, rental households, and multifamily investment dollars. In spite of new development, the city still ranks as one of the most expensive (if not the most expensive) places to live in the United States. Chandan Economics reports that rents for mortgage-backed properties increased at a double-digit pace in 2014. Across the multifamily inventory, the average apartment rent was nearly $3,000. Prospects for income growth are well-capitalized into the market’s aggressive pricing; domestic and cross-border investors ready to pay a premium for liquidity are best prepared to navigate around buying opportunities.

The influx of young well-paid tech workers and the reach of development into new neighborhoods are not without their problems, as many long-time residents of San Francisco have found themselves on the losing side of gentrification. Affordability remains a concern for San Francisco residents and the stringent rent-control regulations remain bothersome for developers looking for short-term value-add investments. San Francisco should see 10,000 new units delivered before the end of 2015. The strong demand side fundamentals of the local economy should absorb the new supply easily. Among the notable projects, approvals are now in place for Parkmerced in the Outer Sunset. The first phase includes more than 1,500 units and will eventually rise to nearly 9,000 apartments. Lennar’s Hunters Point Shipyard-Candlestick Point redevelopment, which will produce 478 affordable and 755 market-rate units, is also underway, with the first affordable units expected in 2016.

To read more on San Francisco and other top multifamily markets, download the full version of the 2015 Multifamily Market Update report here.

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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.

San Diego, CA | 2015 Top #CRE Markets to Watch: Multifamily

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 Multifamily Markets to Watch. Not the largest or the most actively contested markets, the 2015 Multifamily 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 Multifamily Market to Watch: San Diego, CA

San Diego: 2015 Multifamily Markets to WatchSan Diego’s diverse economic base has been essential to its recovery from the Great Recession and the prevailing strength of the apartment sector. Recent investments in infrastructure, including the expansion of both the San Diego International Airport and San Ysidro Land Port of Call border crossing, have helped bolster the economy with construction jobs, while also laying the groundwork for permanent employment gains in San Diego’s manufacturing, shipping and logistics, and tourism sectors. San Diego has a very large military and defense contractor presence, but it has also seen an uptick in biotechnology investment, including the completion of J. Craig Venter Institute’s net-zero-energy, LEED Platinum genomics laboratory in La Jolla in February 2014. The ambitious I.D.E.A. (Innovation, Design, Education, and Arts) District is aimed at transforming the East Village area of downtown San Diego into a hip “24-hour” neighborhood, with ample space for technology startups, restaurants, and housing options that will appeal to younger renter households.

The market’s overall fundamentals remain strong even as new supply comes online. Freddie Mac projects 2015 vacancy rates of just 2.8% and year-over-year rent growth of 4.1%. The average cap rate has fallen below 5% for recent transactions and refinancing, but investors looking for small- and mid-cap value-add opportunities at marginally higher cap rates than to the north in Los Angeles and Orange County may find that forays into San Diego bear fruit.

To read more on San Diego and other top multifamily markets, download the full version of the 2015 Multifamily Market Update report.

multifamily_thumbnail

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.

Seattle, WA | 2015 Top #CRE Markets to Watch: Industrial

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 Industrial Markets to Watch. Not the largest or the most actively contested markets, the 2015 Industrial 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 Industrial Market to Watch: Seattle, WA

Seattle: 2015 Industrial Markets to WatchSeattle’s industrial vacancy rate fell to 4% in the first quarter of 2015, down more than 100 basis points from a year earlier. High occupancy rates, impressive rent growth trends, and investors’ favorable assessment of the general market opportunity are prompting significant new development. More than 4 million square feet was under construction in late 2014, representing more than 3% of the market’s current industrial inventory.

With one of the fastest growing urban cores and most highly educated populations, Seattle’s economic and investment outlook position the Puget Sound region as a contender for gateway market status. In the Urban Land Institute’s latest Emerging Trends Report, Seattle ranks in the top ten markets nationally for its attractiveness as a target for investment across all property types. It ranked fourth nationally for development and redevelopment opportunities, behind only Houston, Dallas, and San Jose and ahead of all of the coastal gateways. For industrial investment specifically, Seattle ranked second in the nation, 88% of investors assigned Seattle’s industrial sector a buy or hold rating while only 12% reported a sell recommendation.

To read more on Seattle and other top industrial markets, download the full version of the 2015 Industrial Market Update report here.

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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.

Portland, OR | 2015 Top #CRE Markets to Watch: Multifamily

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 Multifamily Markets to Watch. Not the largest or the most actively contested markets, the 2015 Multifamily 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 Multifamily Market to Watch: Portland, OR

Portland: 2015 Multifamily Markets to WatchPortland has established itself as a magnet for Millennial households, which in turn has contributed to its very tight rental market. About 7,000 units were delivered in 2014. Still, the multifamily vacancy rate in Portland ended the year at less than 3%. While Freddie Mac expects additional deliveries in 2015 to push vacancy rates up, the agency additionally projects a 3.8% increase in rental rates. Oregon’s land-use restrictions ensure that construction is overwhelmingly in-fill, which fits the Millennial preference for urban living.

The economic and labor market drivers of apartment demand in the Portland area are robust. Among last year’s milestones, November 2014 saw the single largest monthly job growth for Portland since 1990. Intel, which just negotiated a 30-year tax break in exchange for an extraordinary $100 billion investment in semiconductor equipment and facilities at its Hillsboro campus, anchors the high-tech industry in Portland, while Nike received final approvals to expand its Beaverton campus in order to accommodate the addition of 2,100 jobs. German solar panel producer, SolarWorldAG, is set to expand its Hillsboro facility, adding 200 jobs. Small- and medium-sized businesses are flourishing as well, with 57% of the Inc. 5000 list of fastest growing companies calling Portland home.

To read more on Portland and other top multifamily markets, download the full version of the 2015 Multifamily Market Update report.

multifamily_thumbnail

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.

Portland, OR | 2015 Top #CRE Markets to Watch: Industrial

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 Industrial Markets to Watch. Not the largest or the most actively contested markets, the 2015 Industrial 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 Industrial Market to Watch: Portland, OR

Portland: 2015 Industrial Markets to WatchPortland’s industrial vacancy rate dipped below 6% in the first quarter of 2015, adding the region to the ranks of the tightest industrial markets in the nation. Rent gains across industrial subtypes have accelerated in kind and, in 2014 and the first quarter of 2015, were on par with higher profile markets including San Jose. The strong local economy and online commerce trends are behind the healthy absorption of warehouse, distribution, and fulfillment spaces. But the concentration of tech activity and the market’s relatively low costs have also made Portland an attractive option for data centers. As compared to markets with comparable occupancy and rent growth rates, investors will find relatively good values in Portland. The average cap rate for sales and refinancing activity was 6.2% in 2014, nearly 100 basis points higher than in the dominant Northern California and Southern California markets and 70 basis points lower than Seattle. Diverging from the positive outlook for the area’s overall industrial market, the Port of Portland faces serious challenges. In spite of the longshoremen’s new contract, the departure of Hanjin and Hapag-Lloyd — which together account for nearly all of the port’s container traffic — will be difficult to overcome.

To read more on Portland and other top industrial markets, download the full version of the 2015 Industrial Market Update report here.

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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.

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.

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

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 Multifamily Markets to Watch. Not the largest or the most actively contested markets, the 2015 Multifamily 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 Multifamily Market to Watch: Oakland, CA

Oakland: 2015 Multifamily Markets to WatchThe rapid gentrification of some of San Francisco’s most iconic and hitherto relatively affordable neighborhoods has forced many recently priced-out residents to look eastward across the Bay to Oakland. They are not alone, but instead have been joined by some investors who are skeptical of San Francisco’s record low cap rates.

By late 2014, surging demand for apartments pushed rent growth in Oakland to nearly 7.0%, according to Chandan Economics’ tracking of mortgage-financed properties. Supporting continued increases, Freddie Mac projects Oakland’s multifamily vacancy rate will hover just above 3.0% in 2015, barely higher than San Francisco. Developers are working to meet demand. The Temescal/Telegraph neighborhood is seeing a flurry of development activity as investors bet that this area can compete with Berkeley’s Gourmet Ghetto and attract young renters. Deliveries will peak in 2016, relieving some of the upward pressure on rents.

Relocations from San Francisco are not the only drivers of multifamily performance in Oakland. The local economy is strong, supporting local demand that is independent of the Bay Area’s market interplay. The employment picture in the Oakland area has brightened considerably: the unemployment rate peaked at 16.5% in 2009, above the state-wide number, but has since declined to 5.9%, below California’s current 6.5% rate.

To read more on Oakland and other top multifamily markets, download the full version of the 2015 Multifamily Market Update.

multifamily_thumbnail

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.

Northern New Jersey | 2015 Top #CRE Markets to Watch: Industrial

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 Industrial Markets to Watch. Not the largest or the most actively contested markets, the 2015 Industrial 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 Industrial Market to Watch: Northern New Jersey

Northern New Jersey: 2015 Industrial Markets to WatchFollowing more than a year of sluggish rent gains and relatively weak absorption, Northern New Jersey’s industrial market appears poised for growth. That sentiment may be shared across the wide range investors who ranked North Jersey fifth in the nation for industrial investment prospects. In the Urban Land Institute’s 2015 Emerging Trends Report, nearly two-thirds of respondents assigned a buy rating to the North Jersey industrial market. Only 7% gave a sell rating.

Major projects underway will bolster the competitiveness of the area’s industrial assets, including interchange and bridge infrastructure projects. The Port Authority of New York and New Jersey is investing in massive infrastructure improvements to the Port Newark Container Terminal. Those efforts will increase capacity and processing time per truck. Additionally, the Bayonne Bridge is being raised more than 60 feet at a cost of more than $1.3 billion in order to accommodate the post-Panamax ships that are expected to pass through the Panama Canal once widening is complete in 2016.

Among new sources of demand for space, tighter markets in New York City are generating spillovers into the Garden State. As gentrification marches through the Outer Boroughs, some of the city’s industrial tenants may look to the Meadowlands and other Northern New Jersey markets for cheaper alternatives and larger floor plates. With little in the way of new construction, the market’s tighter occupancy outlook should support more consistent rent and property income growth.

To read more on Northern New Jersey and other top industrial markets, download the full version of the 2015 Industrial Market Update report here.

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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.