Posted byJonas Levy on Fri, February 21st, 2014 11:58:07
We recently reported on the positive state of the office market, and now CoStar gives us more information on the facts and figures. In the article, “For the U.S. Office Market, it was a very Good Year,” Randyl Drummer reports that investors were pumped about office market gains in 2013, and considering the drivers for rent growth and property income are forecasted for greatness, 2014 should, by all accounts, be a happy year for office investors. He writes that CoStar reports that net absorption in the nation’s office market rose by 22 percent from 2012 to 2013 to settle in at 59 million square feet. That moved the needled on vacancy for the time period from 12.4 percent to 11.9 percent.
Rents grew by 3.1 percent, he writes, buoyed by office space demand.
The hot spots are gateway markets, of course, but also suburban office, Drummer reports. He writes, “While suburban office markets were still largely lackluster as recently as a year or two ago, CoStar analysts now describe the recovery in the suburban office sector using superlatives such as amazing, remarkable, and ‘on fire.”
Spend even 10 minutes online researching and you’ll see report after report about specific market recovery. Here are just a few specific examples: Cassidy Turley says Northern and Central New Jersey are seeing rental growth and demand. The same for Burbank (as reported by Bloomberg) and Indianapolis (as reported by Cassidy Turley). (And check out this report on Houston–not a secondary market but the story here is huge, as reported by Colliers).
CBRE published a quick-read report on commercial real estate growth trends for the year, highlighting the popularity of secondary markets and their yield potential.
What secondary markets are on your radar for office investment? Share your thoughts in the comment space below.
For more articles, commentary, and industry expert views on commercial real estate topics and trends, visit the other articles on our blog at RealEstateDealSheet.com/blog.
Rents grew by 3.1 percent, he writes, buoyed by office space demand.
The hot spots are gateway markets, of course, but also suburban office, Drummer reports. He writes, “While suburban office markets were still largely lackluster as recently as a year or two ago, CoStar analysts now describe the recovery in the suburban office sector using superlatives such as amazing, remarkable, and ‘on fire.”
Spend even 10 minutes online researching and you’ll see report after report about specific market recovery. Here are just a few specific examples: Cassidy Turley says Northern and Central New Jersey are seeing rental growth and demand. The same for Burbank (as reported by Bloomberg) and Indianapolis (as reported by Cassidy Turley). (And check out this report on Houston–not a secondary market but the story here is huge, as reported by Colliers).
CBRE published a quick-read report on commercial real estate growth trends for the year, highlighting the popularity of secondary markets and their yield potential.
What secondary markets are on your radar for office investment? Share your thoughts in the comment space below.
For more articles, commentary, and industry expert views on commercial real estate topics and trends, visit the other articles on our blog at RealEstateDealSheet.com/blog.
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