Market Reports

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


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


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


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.


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.


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.


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 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.


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.


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


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


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%).


Since mid-year 2016, Beltline vacancy has increased by 1.4%% to end Q3 at 19.7%. Given that negative absorption occurred among headleases versus subleases at a ratio of 2:1, the distribution between headlease and sublease space was adjusted to 74% and 26%, respectively. This quarter witnessed net absorption of negative 102,878 sf.


Overall vacancy increased by 1.1% during the third quarter to 22.3%. The distribution of vacancies by suburban building class changed slightly as a result of 106,000 sf of B Class vacancies, plus approximately 158,000 sf of unleased A Class space among several new Suburban developments. An additional 159,000 of sublease space was also placed on the market.


Over the third quarter of 2016, the vacancy rate in Calgary’s Downtown market exceeded 22.%. This represents a record high, comprising 9.2 million square feet of space available for lease within a 41.6 million square foot (msf) inventory. Despite some activity among A Class and C Class sublease spaces, the overall trend of negative absorption continued at roughly the same pace as we’ve seen since the beginning of 2015.


Welcome to Bilfinger GVA’s central London office analysis; our detailed view of the market in Q2 2016. The B word—It actually happened! Despite the fact that the EU referendum has cast a shadow over the last year, when the results came through, it seems that nobody actually expected it. The fallout of the decision to leave the European Union is still to be fully understood but there has clearly been quite a shock wave throughout the whole of the UK and the central London office market.


There are several types of commercial leases and terms, but a common thread among them is that the devil is in the details. Commercial real estate lease contracts are notoriously tricky documents, and a good or bad lease can mean manageable versus inflated real estate costs or even the difference between success or failure for businesses. With so much riding on a single document, it’s wise to consult a professional commercial real estate broker. Many Tenants don’t realize that a commercial real estate broker can also be retained for lease renewals. Tenant representation during lease renewal negotiations helps ensure that the terms are in line with the market and often leads to competitive concessions being received on lease rates and premises improvements. When the economy is soft, Landlords with near term rollover are further motivated to lock-in Tenants rather than risk losing them. This is a critical opportunity to not only renew the lease, but improve the lease.


Stubbornly low energy prices during the first half of 2016 kept the Alberta economy moving at a sluggish pace.The slowed market kept a lid on investment activity in Calgary and prolonged the ‘wait and see’ attitude in the investment market, for major and minor players alike. Many investors continued patiently waiting on the sidelines, looking for opportunities while current owners held onto properties of consequence.


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


Year-to-date commercial real estate (CRE) investment in the Edmonton market proved resilient against the backdrop of a second recessionary year.



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, 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


Net absorption for the year was at negative 1.9 million square feet. • Vacancy grew to 19.2%. • These dropping statistics were aided by Zurich moving into its new build to suit as well as Jim Beam and ConAgra moving from the suburbs downtown.


Net absorption for the year dropped to 833,000 square feet. • The vacancy rate reached 11.0%. • The first of Chicago’s two new office towers opened its doors, 444 West Lake had tenants move into around 140,000 square feet of the one million square-foot building.


As the third quarter for 2016 ends, the Texas economy gained momentum as recent data from the Federal Reserve Bank of Dallas shows. All indications are that Dallas has moved past the economic slump attributable to oil prices. Fort Worth has been slower to rebound, as they were deeply impacted by the dramatically lower oil prices. The Metroplex continues to experience job growth as reported by The Dallas Business Journal in November, and our in migration of residential remains strong. It appears that the Dallas/Fort Worth Metroplex has moved to a diversified economy and a lessening dependence upon the energy sector.


The Upper Tollway Sub-Market has seen a spike in Class A vacancy from 18.1% in Q3 of 2015, to 22.3% in Q3 of 2016. Although full-service rents continue to climb, prices have slowly began to mellow out as rates increased from $33.53 PSF to $34.57 PSF during the same time frame. The most alarming of the Q3 statistics is the fact that Class A total net absorption for Q3 2016 was -77,093 SF, with over 200,000 SF of new sublet space arriving to market just this quarter.


The Richardson/Plano Sub-Market has shown an decrease in the direct Class A vacancy from 15.5% in the third quarter of 2016 to 12.3% at the beginning of the third quarter of 2016. Meanwhile, direct weighted average full-service rents increased from $24.16 to $26.12 per square foot during the same time. Class A net absorption in the past twelve months sits at 1,109,572 square feet. Class B vacancy remained relatively stable and sits at 20.9% with full-service rental rates jumping from $19.08 per square foot to $22.48 per square foot.


The Preston Center Sub-Market has seen an increase in the Class A vacancy from 6.6% at the end of third quarter 2015 to 6.8% at the end of the second quarter 2016. Average full-service rental rates of Class A space increased per square foot, from $37.40 to $37.67 during the same timeframe. Class A direct net absorption was at 51,053 square feet for the third quarter of 2016.


The North Central Expressway Sub-Market has seen a remarkable decrease in the Direct Class A vacancy from 17.3% at the end of third quarter 2015 to 12.4% at the end of the third quarter 2016. Average full-service rental rates of Class A space increased per square foot, from $27.67 to $29.30 during the same timeframe. Class A direct net absorption is currently at 37,268 square feet quarter to date. Meanwhile, Direct Class B vacancy has decreased by .6% since the third quarter of 2015 from 8.7% to 8.1% with full-service rental rates increasing from $23.12 per square foot to $24.81 per square foot. Direct net absorption in Class B space is negative at 9,444 square feet for this quarter.


Class A properties along the Dallas North Tollway remain full, hovering around a record-low 12% vacancy rate. We did however see a correction in Class A property rental rates, that decreased $.33 cents per square foot to settle at $29.02 at the end of the third quarter. We do not anticipate much, if any rental rate increases in the coming months. We are of the opinion that the rental rates for Class A product have topped out, and will likely decrease as companies like Fannie Mae and JP Morgan prepare to relocate to Plano.


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.


At the end of the third quarter of 2016, the flex market averaged a $8.87 psf triple-net rental rate, which is a significant increase from the third quarter average rental rate in 2015 of $8.07 psf triple-net. The vacancy rate for the second quarter of 2016 sits at 7.0%.


TCN Worldwide's State of the Market: Central 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 Central States –Commercial Property Investment Trends


Bradford Allen is pleased to share with you our 2016 third quarter market report. This quarter in the downtown market: • Absorption for the quarter reached 806,000 square feet • Rental rates dropped a nominal $.09 to $36.14 • Vacancy dropped to 11.5% • Two companies, Duracell and Wilson Sporting Goods, announced that they will be moving their offices to downtown Chicago



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