Archive for the ‘Owner Occupied’ Category

Office Market Recovery Continues in Third Quarter

Friday, October 26th, 2012

Office space demand across the country over the third quarter remained constant while absorption of available space continued to gain momentum. According to the CoStar Group’s Third-Quarter 2012 Office Review & Outlook, the overall U.S. office vacancy rate edged down and net absorption rose to 15 million square feet during the quarter from 13 million square feet at mid-year 2012. Little new supply and construction helped balance the supply and demand.

It still remains a tenants market however as there has been a lack of rent increases in most markets. Leasing activity in general is expected to exceed 135 million square feet nationally for the third quarter, eclipsing the 130 million leased during the second quarter. After a weak start to the year, landlords are beginning to see office-using job growth translate into leasing decisions and momentum.

To read the full article from the CoStar Group, click here.

Posted in Economy, Leased, Office, Owner Occupied, Real Property | No Comments »

Washington D.C. Office Market Slows

Tuesday, October 2nd, 2012

An uncertain short-term economic outlook has caused leasing activity to slow and vacancies to rise in the Washington, DC office market. According to the Washington Business Journal, although the area remains one of the healthiest office markets in the country, net leasing absorption was a negative 2.5 million square feet through the first nine months of 2012, compared to a positive 1.1 million square feet during all of 2011.

Vacancies in the area have risen a full percentage point from a year earlier to 13.1%, but still remains one of the lowest rates in the nation and is well below the national average of 17.1%.  Much of the struggling fundamentals in the area can be attributed to demand being hit by Base Realignment and Course-related move-outs to government-owned space. This has limited leasing activity due to uncertainty about sequestration and tenants consolidating operations or downsizing space.

To read the full article from the Washington Business Journal, click here.

Posted in Eastern, Economy, Leased, Office, Owner Occupied, Real Property | No Comments »

Technology, Energy Hubs to Outperform Office Market in 2012

Friday, December 30th, 2011

The national office sector is projected to experience a slowed growth in 2012 due to a damper on demand for new space. However, according to the National Real Estate Investor, select office markets that are home to technology firms and energy companies will continue with steady growth in the foreseeable future. The average office vacancy at the end of 2011 will stand at 16.8%, and is only expected to decrease down to 15.7% over the course of 2012. In addition, average rents of all classes of office properties will continue to stagnate.

Due to strong growth in the technology and energy sectors, leasing demands for such properties in cities like San Francisco, Seattle, Houston, Oklahoma City, and Pittsburgh should fall in line with the increasing demands.

To read the full article from the National Real Estate Investor, click here.

Posted in Eastern, Economy, Leased, Mid America, Office, Owner Occupied, Real Property, Western | No Comments »

Commercial Property Outlook Good, Not Great

Thursday, September 30th, 2010

While results won’t be dramatic, an improving employment picture and a more positive outlook by private-sector employers will boost the North Texas commercial real estate market in 2011. According to the Dallas Business Journal, office leasing will increase next year due to the fact that many tenants’ leases are rolling. On top of that, many relocating corporations will choose Dallas-Fort Worth for their headquarters at an increased pace.

Occupancy and lease rate should see a modest increase in North Texas office areas in 2011. The most gain will occur in the Uptown areas of Dallas, Preston Center and Far North Dallas. 2011 should bring even more of an increase in sales activity than 2010 brought in the areas of office, industrial, apartment and retail buildings as financing for investors slowly becomes more available and interest rates remain low.

To read the full article from the Dallas Business Journal, click here.

Posted in Apartments, Industrial, Leased, Mid America, Multi Family, Office, Owner Occupied, Real Property, Retail | No Comments »

Shadow Office Space “Leased but Empty” Haunts Commercial Real Estate

Tuesday, July 27th, 2010

While office vacancies are widely reported, few factor in shadow supply, downsized companies with more leased space than they need, holding on to it hoping things will get better, or stuck in long-term leases with more space than is wanted or needed. In Mike Shedlock’s blog “Mish’s Global Economic Trend Analysis” he reports on how space that is leased or owned but largely empty and not officially listed anywhere as vacant will likely prolong the recovery of areas already struggling with high vacancy rates.

The national problem remains that subleasing is not easy to accomplish and the supply of office space just sits as rental prices drop due to lack of demand. This leads many experts to believe that the current funk that commercial real estate is in will remain for years to come.

To read the full article from Mish’s Global Economic Trend Analysis, click here.

Posted in Leased, Office, Owner Occupied, Real Property | No Comments »

Scottrade Gets OK for $2.6M in Tax Credits

Tuesday, July 20th, 2010

According to the St. Louis Business Journal, the Missouri Development Finance Board gave the final approval of close to $2.6 million in tax credits toward Scottrade’s  $36.3 million expansion in the St. Louis suburb of Town and Country. Last September, Missouri officials gave preliminary approval to help Scottrade construct a 138,000-square-foot, 700-spot parking garage.

Some financial incentives received will be used to renovate the 25-year old building currently occupied by the firm with the majority of the tax credits being used for the parking garage. Being headquartered in St. Louis County and as one of the largest privately held companies in the area, Scottrade has promised to add over 500 local jobs in the next five years.

To read the full article from the St. Louis Business Journal, click here.

Posted in Mid America, Office, Owner Occupied, Real Property | No Comments »

Further Slide Seen in Commercial Real Estate

Thursday, January 7th, 2010

According to The New York Times in their article, “Further Slide Seen in Commercial Real Estate” there are 180 major buildings totaling $12.5 billion in value that are facing foreclosure or bankruptcy in Manhattan alone. Rents for commercial office space in the area fell faster over the past two years than in any such period in the last half century.

Many New York City commercial real estate experts say that despite some flickering signs of economic recovery, big buildings and giant apartment complexes have further to tumble. Owners of troubled properties will face a final day of reckoning or in some cases lose their properties. One expert predicts that the value of New York metropolitan office buildings will decline by 58% from its late 2007 peak.

There still is the opportunity to snap up some great bargains in the down economy, however. Investors looking toward the area could bring a much needed growth in overall sales, with some people suggesting that it may be healthy for the city’s real estate market to have a down cycle.

There is still much pessimism for many reasons with one of the main ones being taxes on these commercial buildings. Residential and commercial development generated $307.7 million in tax revenues, not including property taxes, from 2000 to 2007. The industry had a $12 billion effect on the local economy during that period. The tax base is enormous in NYC and it helps fund many of the basic services that make it operate.

Read the full article from The New York Times here.

Posted in Apartments, Eastern, Leased, Multi Family, Office, Owner Occupied, Real Property | No Comments »