Market Reports

TCN Worldwide's State of the Market: Western Edition, 2nd Quarter 2017 Prepared by Hugh F. Kelly, PhD, CRE, Consulting Economist to TCN Worldwide. In this edition: –National and Macroeconomic Overview –Regional Economic Conditions –Commercial Property Investment Trends


TCN Worldwide's State of the Market: Eastern Edition, 2nd Quarter 2017 Prepared by Hugh F. Kelly, PhD, CRE, Consulting Economist to TCN Worldwide. In this edition: –National and Macroeconomic Overview –Regional Economic Conditions –Commercial Property Investment Trends


TCN Worldwide's State of the Market: Central Edition, 2nd Quarter 2017 Prepared by Hugh F. Kelly, PhD, CRE, Consulting Economist to TCN Worldwide. In this edition: –National and Macroeconomic Overview –Regional Economic Conditions –Commercial Property Investment Trends


Absorption totaled 18,745 sq. ft. in the Second Quarter 2017. Solid figures considering the run this market has enjoyed over the past several quarters.


AT THE MID-POINT OF 2017, THE EDMONTON MARKET POSTED A FOURTH CONSECUTIVE QUARTER OF RENEWED APPEAL TO COMMERCIAL REAL ESTATE (CRE) INVESTORS. AS A BONUS, 2017 IS WIDELY CONSIDERED THE YEAR ALBERTA WILL SEE ITS ECONOMY ENTER A RECOVERY STAGE. THE SENSE OF OPTIMISM THAT SET IN DURING THE LATTER PORTION OF 2016 CONTINUED AND WAS MANIFEST IN THE MORE THAN $1.08 BILLION BEING INVESTED IN COMMERCIAL PROPERTIES FROM JANUARY THROUGH JUNE.


DURING THE FIRST HALF OF 2017, RAYS OF LIGHT CONTINUED BREAKING THROUGH THE CLOUDS CAST BY A NEARLY THREE-YEAR LONG RECESSION. THOUGH THE ALBERTA ECONOMY GENERALLY CONTINUED MOVING AT A SLOWED PACE, A FEW KEY SECTORS EXPANDED AND SEVERAL LARGE FINANCIAL INSTITUTIONS MAINTAINED THEIR FORECASTS OF AN OVERALL RECOVERY THIS YEAR.


This quarter in the suburban market: Net absorption for the year was negative 824,740 square feet, down from the first quarter’s positive 661,382 square feet. The overall vacancy rate was 20.7%. Available space in large (over 100,000 square feet), true Class A properties are most prevalent in the North and Northwest markets.


This quarter in the downtown market: Net absorption for the year was positive 642,176 square feet. The overall vacancy rate was 13.2%. The West Loop continues to be the Central Business District’s darling with 7 of the 11 proposed and under construction office buildings within its confines.



Regardless of High Vacancies, Construction Progresses


The Richardson/East Plano Sub-Market has shown a decrease in the direct Class A vacancy from 24.7% in the second quarter of 2016 to 22.8% for the start of second quarter 2017. Meanwhile, direct weighted average full-service rents increased from $26.91 to $27.38 per square foot during the same time. Class B vacancy decreased from 15.6% to 13.3% and as a result, full-service rental rates increased from $18.88 per square foot to $19.48 per square foot.


19% VACANCY RATE REACHES A FOUR-YEAR HIGH


The LBJ Corridor is one of the last remaining safe havens for companies that are seeking rent relief. With submarkets like Central Expressway and the Lower Tollway experiencing 10-12% vacancy rates, the East LBJ Corridor has a vacancy rate of just below 25%. We expect this to change drastically in 2017 with companies fleeing surrounding submarkets for the best valued office space in the entire DFW- Metroplex.


The second quarter ended with a vacancy of 14.3%, virtually no change from the first quarter of 14.2%. Rental rates for all property classes on a full-service basis increased marginally to $24.64 up from the first quarter of $24.52. Year-to-date absorption totaled 2,401,965, on pace for another very respectable year assuming the back half of this year reflects the first half of the year.


MANHATTAN Q2 2017 SNAPSHOT (MHP, NYC)

The Manhattan office leasing market ended the second quarter of 2017 with a negative absorption of nearly 630,000 square feet, more than 1,000,000 square feet stronger than Q1. The vacancy rate citywide is now 8.2% having ticked downwards by 0.2% almost 1.5% stronger than the national marketplace. Average rents across the Manhattan office market fell to just below $60psf. The pricing correction and significantly lower negative absorption rate indicates a leveling of the office leasing market.


CALGARY’S SUBURBAN MARKETS EXPERIENCED AN INTERESTING SECOND QUARTER AS SEVERAL NEW OFFICE DEVELOPMENTS WERE DELIVERED.


VACANCY IN CALGARY’S DOWNTOWN REMAINED RELATIVELY STEADY AT MID-YEAR 2017, RISING BY 0.4% TO 24.6%.


Vacancy dropped to 3% following four consecutive quarters in the mid-3% range. This marks a return to Q1 2016 levels.


Investors continued to demonstrate confidence in the Calgary market through the first quarter of 2017.


Investors continued to demonstrate interest and confidence in the Edmonton market through the first quarter of 2017.


AT THE MID-POINT OF 2017, THE EDMONTON MARKET POSTED A FOURTH CONSECUTIVE QUARTER OF RENEWED APPEAL TO COMMERCIAL REAL ESTATE (CRE) INVESTORS. AS A BONUS, 2017 IS WIDELY CONSIDERED THE YEAR ALBERTA WILL SEE ITS ECONOMY ENTER A RECOVERY STAGE. THE SENSE OF OPTIMISM THAT SET IN DURING THE LATTER PORTION OF 2016 CONTINUED AND WAS MANIFEST IN THE MORE THAN $1.08 BILLION BEING INVESTED IN COMMERCIAL PROPERTIES FROM JANUARY THROUGH JUNE.


DURING THE FIRST HALF OF 2017, RAYS OF LIGHT CONTINUED BREAKING THROUGH THE CLOUDS CAST BY A NEARLY THREE-YEAR LONG RECESSION. THOUGH THE ALBERTA ECONOMY GENERALLY CONTINUED MOVING AT A SLOWED PACE, A FEW KEY SECTORS EXPANDED AND SEVERAL LARGE FINANCIAL INSTITUTIONS MAINTAINED THEIR FORECASTS OF AN OVERALL RECOVERY THIS YEAR.


CALGARY’S SUBURBAN MARKETS EXPERIENCED AN INTERESTING SECOND QUARTER AS SEVERAL NEW OFFICE DEVELOPMENTS WERE DELIVERED.


VACANCY IN CALGARY’S DOWNTOWN REMAINED RELATIVELY STEADY AT MID-YEAR 2017, RISING BY 0.4% TO 24.6%.


Vacancy dropped to 3% following four consecutive quarters in the mid-3% range. This marks a return to Q1 2016 levels.


Investors continued to demonstrate confidence in the Calgary market through the first quarter of 2017.


At the end of the first trimester of 2017, the industrial market of the Metropolitan Area of Mexico City recorded an inventory of 8.8M Sq.M of industrial ships class A, mainly in the submarkets of Cuautitlan (32%) and Toluca (20%).


The first trimester of the year closed with a total office inventory of 5.8 million Sq.M in class A+ and A offices. This means an increase of 339 thousand Sq.M.


Interesting things happened in the Downtown market over the first three months of the year; notably in leasing trends at the smallest end of available options.


A pleasant surprise! While expectations were that CRE investment in the Edmonton market would decline, we have seen strong overall demand and spending, particularly on Retail properties over the course of 2016, shifting from ICI Land the previous year. The remaining asset classes largely remained stable and generally exceeded analysts’ expectations.


The entrance of institutional investors in the Calgary market, during a down period, demonstrates a renewed confidence in the future of the city. Adding additional appeal is the advanced process of industry diversification. The results of 2016 are of no surprise to prudent investors and to us Calgarians.


THE BELTLINE MARKET WITNESSED NET POSITIVE ABSORPTION DURING THE FOURTH QUARTER OF 2016, TOTALLING 135,000 SQUARE FEET (SF).


THE OVERALL VACANCY RATE IN SUBURBAN CALGARY WAS ESSENTIALLY FLAT DURING THE FOURTH QUARTER, RISING A FRACTION OF A PERCENT TO 22.6% FROM 22.3% IN Q3 2016.


Over the course of 2016, 2.5 million square feet (msf) of office space was returned to the market, causing the vacancy rate in downtown Calgary to increase by 6.2% year-over-year from Q4 2015. Downtown vacancy sat at 23.5%, representing 9.8 msf of space available for lease within a 41.6 msf inventory. Despite renewed activity among A Class and B Class headlease spaces, the overall trend of negative absorption continued, though as a slowed pace when compared to 2015 and early 2016. It should be noted that 3.9 msf were vacated during the previous year.


The ongoing economic downturn continued to exert pressure on Landlords and Tenants, leading to several store and restaurant closures. Therein, however, lay opportunity for others to take advantage of decreasing market rental rates, which led to the opening of multiple new franchise locations.


Investor sentiment regarding the Calgary market showed signs of renewed confidence as 2016 progressed.


Calgary’s industrial vacancy rate has slid again slightly to 7.80% as of the end of the third quarter 2016. Vacancy has steadily increased through 2015 and 2016, from 4.30% at the end of 2014. This marks the highest recorded vacancy rate for Calgary’s industrial market in the past 15+ years.


Welcome to Bilfinger GVA’s central London office analysis; our detailed view of the market in Q3 2016.


The third trimester of 2016 closed with a total office inventory of 5.7 million sq. m in offices of class A and A+. This means an increase of 563 thousand Sq. M in comparison with last year’s third trimester.


At the end of the third quarter of 2016, the industrial market Class A of Mexico City recorded an inventory of 8.3M Sq.M. with the Cuautitlan submarket covering a larger share of that inventory (33%) followed by Toluca (20%).



TCN Worldwide's State of the Market: Eastern Edition, 2nd Quarter 2017 Prepared by Hugh F. Kelly, PhD, CRE, Consulting Economist to TCN Worldwide. In this edition: –National and Macroeconomic Overview –Regional Economic Conditions –Commercial Property Investment Trends


Absorption totaled 18,745 sq. ft. in the Second Quarter 2017. Solid figures considering the run this market has enjoyed over the past several quarters.


MANHATTAN Q2 2017 SNAPSHOT (MHP, NYC)

The Manhattan office leasing market ended the second quarter of 2017 with a negative absorption of nearly 630,000 square feet, more than 1,000,000 square feet stronger than Q1. The vacancy rate citywide is now 8.2% having ticked downwards by 0.2% almost 1.5% stronger than the national marketplace. Average rents across the Manhattan office market fell to just below $60psf. The pricing correction and significantly lower negative absorption rate indicates a leveling of the office leasing market.


The Greater Harrisburg Market made significant gains in the First Quarter of 2017 as absorption totaled 55,196 sq. ft. As we enter the Second Quarter the suburban markets boast occupancy rates between 92% and 96%. We are encouraged by the increase in activity from our small business users and remain impressed with the outlook for owners of premier properties as opportunities dwindle for first class options.


TCN Worldwide's State of the Market: Eastern Edition, 1st Quarter 2017 Prepared by Hugh F. Kelly, PhD, CRE, Consulting Economist to TCN Worldwide In this edition: –National and Macroeconomic Overview –Regional Economic Conditions –Commercial Property Investment Trends


Markets continued their advance in 2016 as absorption totaled 250,333 sq. ft., its highest total in over 20 years. Since the First Quarter of 2010 the market has gained over 948,000 sq. ft. Rental rates have stabilized and market fundamentals have continued to strengthen.


TCN Worldwide's State of the Market: Eastern Edition, 4th Quarter 2016 Prepared by Hugh F. Kelly, PhD, CRE, Consulting Economist to TCN Worldwide In this edition: –National and Macroeconomic Overview –Regional Conditions in the Central States –Commercial Property Investment Trends


Going forward we expect continued firming of rates, steady demand and further modest improvement in most segments of the Greater Harrisburg marketplace.


TCN Worldwide's State of the Market: Eastern Edition, 3rd Quarter 2016 Prepared by Hugh F. Kelly, PhD, CRE, Consulting Economist to TCN Worldwide In this edition: –National and Macroeconomic Overview –Regional Conditions in the Eastern States –Commercial Property Investment Trends


2016 Q3 | STREET SMARTS (MHP, NYC)

THE NEW YORK CITY ECONOMY has not only kept pace with the national rebound; it has exceeded the U.S. measures throughout this decade. The most recent data, through the 2nd Quarter of 2016, shows New York outpacing the U.S. Gross City Product growth this year 1.7%, versus the national 1.2% rate in the second quarter. The City however, had stunning results in the prior three quarters, growing at 3.2% and 3.1% in the third and fourth quarters of 2015, and at 4% in the first three months of 2016.


TCN Worldwide's State of the Market: Eastern Edition, 2nd Quarter 2016 Prepared by Hugh F. Kelly, PhD, CRE, Consulting Economist to TCN Worldwide In this edition: –National and Macroeconomic Overview –Regional Conditions in the Eastern States –Commercial Property Investment Trends


Absorption totaled 27,101 sq. ft. in the First Quarter of 2016, solid numbers for a market which had tens of thousands of square feet come on line due to the Deloitte relocation this spring. We continue to remain cautious with our expectations for properties just out of receivership and anticipate potential volatility as new availabilities are introduced to the Suburban West Shore Marketplace.


TCN Worldwide's State of the Market: Eastern Edition, 1st Quarter 2016 Prepared by Hugh F. Kelly, PhD, CRE, Consulting Economist to TCN In this edition: –Overview of National Economic Context –Regional Conditions in the Eastern States –Commercial Property Investment Trends


TCN Worldwide's State of the Market: Eastern Edition, 4th Quarter 2015 Prepared by Hugh F. Kelly, PhD, CRE, Consulting Economist to TCN In this edition: –Overview of National Economic Context –Regional Conditions in the Eastern States –Commercial Property Investment Trends


TCN Worldwide's State of the Market: Eastern Edition, 3rd Quarter 2015 Prepared by Hugh F. Kelly, PhD, CRE Consulting Economist to TCN In this edition: –Overview of National Economic Context –Regional Conditions in the Eastern States –Commercial Property Investment Trends


"As we enter the second half of 2015 we see markets which are continuing to trend towards favorable levels. Buyers are beginning to respond to the Federal Reserve’s hint of an interest rate increase later this September. We see a pronounced increase in the acquisition market and anticipate this activity will continue going forward into 2016."


"Second quarter 2015 continues an ongoing positive trend ... our seventeenth straight quarter of positive absorption."


2015 Q2 | STREET SMARTS (MHP, NYC)

Research and analysis by Hugh Kelly


TCN Worldwide's State of the Market: Central Edition, 2nd Quarter 2017 Prepared by Hugh F. Kelly, PhD, CRE, Consulting Economist to TCN Worldwide. In this edition: –National and Macroeconomic Overview –Regional Economic Conditions –Commercial Property Investment Trends


This quarter in the suburban market: Net absorption for the year was negative 824,740 square feet, down from the first quarter’s positive 661,382 square feet. The overall vacancy rate was 20.7%. Available space in large (over 100,000 square feet), true Class A properties are most prevalent in the North and Northwest markets.


This quarter in the downtown market: Net absorption for the year was positive 642,176 square feet. The overall vacancy rate was 13.2%. The West Loop continues to be the Central Business District’s darling with 7 of the 11 proposed and under construction office buildings within its confines.



Regardless of High Vacancies, Construction Progresses


The Richardson/East Plano Sub-Market has shown a decrease in the direct Class A vacancy from 24.7% in the second quarter of 2016 to 22.8% for the start of second quarter 2017. Meanwhile, direct weighted average full-service rents increased from $26.91 to $27.38 per square foot during the same time. Class B vacancy decreased from 15.6% to 13.3% and as a result, full-service rental rates increased from $18.88 per square foot to $19.48 per square foot.


19% VACANCY RATE REACHES A FOUR-YEAR HIGH


The LBJ Corridor is one of the last remaining safe havens for companies that are seeking rent relief. With submarkets like Central Expressway and the Lower Tollway experiencing 10-12% vacancy rates, the East LBJ Corridor has a vacancy rate of just below 25%. We expect this to change drastically in 2017 with companies fleeing surrounding submarkets for the best valued office space in the entire DFW- Metroplex.


The second quarter ended with a vacancy of 14.3%, virtually no change from the first quarter of 14.2%. Rental rates for all property classes on a full-service basis increased marginally to $24.64 up from the first quarter of $24.52. Year-to-date absorption totaled 2,401,965, on pace for another very respectable year assuming the back half of this year reflects the first half of the year.


The first quarter of 2017 saw vacancy move up from 14.2% in the 4th quarter 2016, to 14.3%. Rental rates increased from $24.13 in the 4th quarter to $24.52 this quarter when considering all classes of properties.


18% VACANCY RATE REACHES A THREE-YEAR HIGH


Deliveries Outweigh Net Absorption for 4th Straight Year


TCN Worldwide's State of the Market: Central Edition, 1st Quarter 2017 Prepared by Hugh F. Kelly, PhD, CRE, Consulting Economist to TCN Worldwide In this edition: –National and Macroeconomic Overview –Regional Economic Conditions –Commercial Property Investment Trends


This quarter in the downtown market: Absorption for the quarter reached 315,000 square feet; Rental rates dropped a nominal $0.19 to $36.44; 150 North Riverside officially opened and welcomed Polsinelli, Studley and Linden Capital as tenants; In the largest deal of the quarter, Context Media signed a lease for 400,000 square feet at 515 North State Street.


The Upper Tollway Sub-Market has consistently been one of the two main hubs of office real estate activity in Dallas. With relocations of large corporate campuses, such as Toyota, FedEx, and JP Morgan Chase, the area is becoming even more appealing as the influx of developers continue to attempt to capitalize on the enticing market. This recent construction has resulted in a surprisingly large vacancy rate for a market with such an “awe factor.”


The North Central Expressway Sub-Market is defined geographically as the area that is bordered by Hillcrest Avenue to the West, N Haskell Avenue to the South, Greenville Avenue to the East, and Forest Lane to the North. This analysis is focused on Class A and B office buildings that are existing or under construction and contain a minimum of 75,000 rentable square feet.


The Lower Tollway Sub-Market is defined by the geographic boundaries of Alpha Road on the south, President George Bush Turnpike on the north, Preston Road on the east, and Midway Road on the west.


The East LBJ Corridor Sub-Market is defined geographically as the area that is bordered by Midway Road to the West, Forest Lane to the South, TI Boulevard to the East, and Alpha Road to the North. This analysis is focused on Class A and B office buildings that are existing or under construction and contain a minimum of 50,000 rentable square feet.


This East Plano Sub-Market covers the area east of US-75, south of 14th Street, west of Northstar/Los Rios Boulevard and north of President George Bush Turnpike, until it turns south, at which point the southern border of the sub-market becomes Lookout Drive. The included statistics cover industrial and flex buildings that have more than 30,000 square feet of space. The East Plano Sub-Market is experiencing a gradual change making it a more mature and technology focused area.


TCN Worldwide's State of the Market: Central Edition, 4th Quarter 2016 Prepared by Hugh F. Kelly, PhD, CRE, Consulting Economist to TCN Worldwide In this edition: –National and Macroeconomic Overview –Regional Conditions in the Central States –Commercial Property Investment Trends



TCN Worldwide's State of the Market: Western Edition, 2nd Quarter 2017 Prepared by Hugh F. Kelly, PhD, CRE, Consulting Economist to TCN Worldwide. In this edition: –National and Macroeconomic Overview –Regional Economic Conditions –Commercial Property Investment Trends

TCN Worldwide's State of the Market: Western Edition, 1st Quarter 2017 Prepared by Hugh F. Kelly, PhD, CRE, Consulting Economist to TCN Worldwide In this edition: –National and Macroeconomic Overview –Regional Economic Conditions –Commercial Property Investment Trends

The Denver retail vacancy rate decreased in the fourth quarter, ending the year at 4.6%. Overall, the retail market has seen a decrease in vacancy rate, with the vacancy rate starting at 4.9% in Q1 2016, to 4.8% in the end of Q2 2016, remaining 4.8% at the end of Q3 2016, down to 4.6% in Q4 2016.

The Denver industrial vacancy rate slightly increased in the fourth quarter, ending the year at 4.8%. Specifically, both industrial-flex projects and warehouse projects experienced an increase in vacancy over the last quarter but slightly fluctuated throughout all four quarters.

The Denver office market ended the year with a vacancy rate of 9.8%. The market continued its upward climb in vacancy for the second consecutive quarter after six quarters that consistently posted a decrease.

TCN Worldwide's State of the Market: Western Edition, 4th Quarter 2016 Prepared by Hugh F. Kelly, PhD, CRE, Consulting Economist to TCN Worldwide In this edition: –National and Macroeconomic Overview –Regional Conditions in the Central States –Commercial Property Investment Trends

The Denver office market experience an upward tick in vacancy for the first time in 6 quarters during the third quarter of 2016. CoStar reported the third quarter vacancy rate at 9.6%. It was also reported that rental rates decreased slightly to $24.94 in Q3 2016 from a reported $25.11 the previous quarter. Net absorption for the overall Denver office market was a negative (29,698) comparing to a positive 754,222 square feet at the end of Q2, and a positive 722,380 square feet in Q1 2016.

The overall Denver industrial vacancy rate ended the third quarter at 4.5%, remaining exactly the same as the previous quarter. More specifically, both industrial-flex projects and warehouse projects experienced a slight increase in vacancy over the last quarter. Vacant sublease space increased dramatically, to 987,082 square feet from 618,165 square feet the previous quarter. Currently there are 4,559,050 square feet of industrial buildings under construction, having had a total of 8 buildings delivered to the market totaling 616,142 square feet during Q3 2016.

The Denver retail market did not experience much change in the third quarter compared to the previous quarter. There was positive absorption of 414,201 square feet from a positive 528,879 square feet in the second quarter 2016. Vacancy rates remained steady at 4.7% quarter-over-quarter.

TCN Worldwide's State of the Market: Western Edition, 3rd Quarter 2016 Prepared by Hugh F. Kelly, PhD, CRE, Consulting Economist to TCN Worldwide In this edition: –National and Macroeconomic Overview –Regional Conditions in the Western States –Commercial Property Investment Trends

TCN Worldwide's State of the Market: Western Edition, 2nd Quarter 2016 Prepared by Hugh F. Kelly, PhD, CRE, Consulting Economist to TCN Worldwide In this edition: –National and Macroeconomic Overview –Regional Conditions in the Western States –Commercial Property Investment Trends

As we enter the fifth year of the latest "tech boom," there are some pretty compelling signs that the "party is almost over."

TCN Worldwide's State of the Market: Western Edition, 1st Quarter 2016 Prepared by Hugh F. Kelly, PhD, CRE, Consulting Economist to TCN In this edition: –Overview of National Economic Context –Regional Conditions in the Western States –Commercial Property Investment Trends

Stark & Associates Retail Market Newsletter for the Northern Nevada Market. Local experts are bullish on Nevada...

TCN Worldwide's State of the Market: Western Edition, 3rd Quarter 2015 Prepared by Hugh F. Kelly, PhD, CRE Consulting Economist to TCN In this edition: –Overview of National Economic Context –Regional Conditions in the Western States –Commercial Property Investment Trends

TCN Worldwide's State of the Market: Western Edition, 3rd Quarter 2015 Prepared by Hugh F. Kelly, PhD, CRE Consulting Economist to TCN In this edition: –Overview of National Economic Context –Regional Conditions in the Western States –Commercial Property Investment Trends

The Scottsdale Office market ended the second quarter 2015 with a vacancy rate of 15.8%, which was slightly lower over the previous quarter. Net absorption totaled positive 42,390 square feet and rental rates ended the second quarter at $23.29, an increase over the previous quarter. No buildings were delivered, but 239,189 square feet are still under construction at the end of the quarter.

The Scottsdale retail market experienced a slight improvement in market conditions in the second quarter 2015. The vacancy rate went from 7.3% in the previous quarter to 7.5% in the current quarter. Net absorption was negative (38,078) square feet, thus creating an increase in vacant space. Quoted rental rates increased from first quarter levels, ending the second quarter at $20.24 per square foot per year. No buildings were delivered in the second quarter but 172,689 square feet are still under construction at the end of the quarter.

The Scottsdale Industrial (Northeast Ind) submarket ended the second quarter 2015 with a vacancy rate of 9.5%. The vacancy rate increased since the previous quarter, with net absorption totaling a negative 35,131 square feet in the second quarter. Vacant sublease space also increased in the quarter and rental rates ended at $11.32, an increase over the previous quarter.

A Complete Analysis of Denver Metro & Surrounding Markets Numbers - Locations Vacancies - Rates