Absorption for the fourth quarter totaled negative 41,000 square feet (sf).
The Beltline market witnessed a net negative absorption totaling 72,000 square feet (sf) during the fourth quarter.
After another quarter characterized by strong leasing activity, the industrial market’s positive trend continued with vacancy decreasing by another 0.50% in the fourth quarter to 6.52%.
Residential Land, Multi-Residential and Industrial sales led Calgary’s commercial real estate investment market in a continued recovery during 2017. Multi-Residential and Residential Land investments both grew more than one-third year-over-year, demonstrating the health and strength of the Greater Calgary Area.
Edmonton’s commercial real estate (CRE) investment market was remarkably stable during 2017, with total dollar volume down just 2.9% year-over-year. There was a game of musical chairs among some asset classes; office investment dominated the year while industrial investment faded. Retail stayed put.
The Mexico City Metropolitan Area Inventory for Class A and A+ office buildings closed the 4Q of 2017 with a total office inventory of 6.3 million square meters. This represents an increase of 10% equivalent to 607 thousand Sq.M.
At the close of the fourth quarter of 2017, the Metropolitan Area of Mexico City’s Industrial Market recorded an inventory of 9.5M Sq.M. of industrial ships class A, mainly in the submarkets of Cuautitlan (19%), Tultitlan (17%) and Tepotzotlan (13%).
Retail Market Forecasts Continued Growth
Office Market Sees Vacancy Rates Rise Slightly.
Multifamily Market Closes 2017 on a High Note.At the beginning of 2017 most said it was the beginning of the inevitable slowdown; however, as we roll into a new year and look back at our forecast, the market ended up right where we expected. 2017 was not only a solid year in terms of investment activity, it was also a strong year from the owner/investor side. We experienced positive sales volume growth, positive rental growth and even managed to push the occupancy a little higher, a multifamily trifecta. Although the year started off a little shaky with many reports citing pressure on rents and occupancies, the rebound in Oklahoma’s economy was a welcome boost pressing the multifamily market forward.
Chicago’s suburban office market suffered its fair share of hits over the past few years but seems to be on an upward trend.
As 2017 closed out, Chicago’s downtown employment base was growing and the economy was largely still in expansion mode from the last serious contraction in 2010.
Lack of product for sale continues in Q4 2017. Market analysis showed that Sales Volume for industrial real estate in the Chicago market was down to $728 Million in the 4th quarter, the lowest Q4 volume since 2014.
At the end of 2017, Calgary’s overall retail market reflected the onset of the economic recovery and benefited from several corporate expansions.
The Upper Tollway Sub-Market has consistently been one of the main hubs of office real estate activity in Dallas. With relocations of large corporate campuses, such as Toyota, Fannie Mae, Liberty Mutual, 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.”
This Richardson/East Plano Submarket covers the I-75 corridor from Walnut Street to Hedgcoxe Road and includes central Plano up to Sam Rayburn Tollway to the North until Alma Road when it drops down to Hedgecoxe Road and Coit Road to the West. The included statistics cover Class A and B office buildings that have more than 50,000 square feet and are either under construction or existing. With more large companies looking to relocate and consolidate to the Dallas suburbs, the Richardson/East Plano Sub-Market provides a valuable option with several large blocks of space still available.
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.
The 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 the most stable period of success in its history.
The first quarter of 2016 closed with a total office inventory in Mexico City was 5.4 M SM (58M SFT) of Class A+ & A spaces what constitutes the largest in Latin America.
Welcome to Bilfinger GVA’s central London office analysis; our detailed review of the market in Q1 2016. Activity during the first quarter of the year has been relatively strong, with take-up well above the five-year quarterly average. Nevertheless, demand seems to have been dampened slightly with some occupiers looking to ‘wait and see’ for the time being.
There’s never been a better time in the last 10 years to be a Montreal tenant. With new space coming on the market and large tenants such as Deloitte and Rio Tinto Alcan moving into new premises, now is the time to either trade up to better space or get equivalent to your current space for less.
AS WAS LARGELY EXPECTED, THE EFFECTS OF LOW PRICED OIL, COMBINED WITH A DRAMATICALLY CHANGED POLITICAL LANDSCAPE IN ALBERTA, affected investor sentiment and caused the investment market in Calgary to quiet significantly in 2015. In comparison to 2014 when $2.66 billion transacted across the Office, Retail, Industrial, Multi-Residential and ICI/Residential Land asset classes, approximately $1.5 billion was invested during 2015.
The Greater Calgary industrial market saw dramatic changes in 2015, with vacancy rising 53% year-over-year from 4.30% at the end of 2014 to 6.57% at the end of 2015. This marks a +15 year peak for Calgary’s industrial vacancy rate, which was previously set in Q4 2009 at 6.38%. Vacant space at the beginning of 2015 was 5,705,105 square feet, which rose to 9,079,126 square feet by the end of the year, an increase of almost 3.4 million square feet.
CALGARY’S RETAIL MARKET REMAINED RESILIENT DURING 2015, despite the drop in discretionary spending due to deteriorating economic conditions. The major impact on vacancy stemmed largely from successive retail chain store closures with Big Box space, which had been essentially zero for years, suddenly coming to market as Target Canada exited after two years of sustained losses and Best Buy began a rebranding campaign that included closing down its sister brand Future Shop. The country-wide closures included three in Calgary. By mid-year, Canadian Tire and Lowes had taken advantage of Target’s departure, purchasing all but one Target lease in Calgary but with four Big Box stores (the former Target store in Forest Lawn plus the former Futures Shop stores in Coventry Hills, Deerfoot Meadows and Sunridge) sitting vacant, Calgary’s overall retail vacancy increased year-over-year to 2.7% from 2.3% at the close of 2014.
AFTER A QUARTER-PERCENT DECREASE IN VACANCY DURING THE THIRD QUARTER, THE BELTLINE EXPERIENCED A 2.5% INCREASE IN VACANCY TO CLOSE THE YEAR. Negative absorption of 174,834 sf has driven the vacancy rate up to 17.33%.
THE FOURTH QUARTER OF 2015 REPRESENTED A CONTINUATION OF UNCERTAIN, ARGUABLY NEGATIVE, MARKET SENTIMENT IN CALGARY. The downward trend in oil prices that began in late 2014 continued – albeit at a progressively slower pace - through 2015 and negatively affected office leasing activity. The impact has been particularly dramatic in the Downtown market as it continues to represent the epicentre of energy industry headquarters.
THE OVERALL VACANCY RATE IN SUBURBAN CALGARY CONTINUED TO INCREASE OVER THE FOURTH QUARTER, RISING FROM 16.21% IN Q3 TO 18.33% IN Q4. This change is reflective of 152,609 sf of negative absorption in addition to the completion of several suburban office projects which each contain significant amounts of vacant space. The timing of new office project deliveries has been a key element of the Suburban office story. In total, more than 800,000 sf of new product was introduced over the course of 2015.
Welcome to Bilfinger GVA’s central London office analysis; a detailed account of our view of the market in Q4 2015.
Welcome to Bilfinger GVA’s central London office analysis; a detailed account of our view of the market in Q3 2015.
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
To no one’s surprise the first half of 2016 was a rough period for the Oklahoma City office market. The market’s vacancy rate increased from 12.3% to 14.8% and the market suffered negative absorption of 179,000 square feet. The Mid-Year 2016 report is yet another lagging economic indicator of where the state’s economy and particularly the state of the petroleum industry currently stands.