Market Reports

Major Tech Acquisitions, Expansions Fuel Growth Throughout Allen, Texas

by Taylor Williams December 20, 2022

By The Allen Economic Development Corp. Austin is often in the spotlight as one of the country’s top tech hubs, but Allen, a growing suburb located north of Dallas, has emerged as a mini tech hub in its own right. Most recently, the Allen Economic Development Corp. (AEDC) announced that Pushpay, a provider of payments and engagement solutions for faith-based and nonprofit businesses, has signed a lease at One Bethany West as the company looks to expand its presence in North Texas. Pushpay is one of several companies that has in recent years discovered that Allen has the right combination of qualities and amenities to support tech companies seeking a new home. Pushpay is one of several companies that has in recent years discovered that Allen has the right combination of qualities and amenities to support tech companies seeking a new home. Pushpay will occupy 10,000 square feet of office space in the 17-acre Watters Creek campus, which will be accessible to its employees in the metroplex, many of which include associates from its subsidiary, Resi Media. “Pushpay and Resi are the perfect additions to the growing roster of tech-focused companies in Allen,” says David Ellis, assistant director at AEDC. …

December 20, 2022

District of Columbia Market Reports Office Southeast Southeast Market Reports

Something is Happening in Downtown D.C.’s Office Market

by John Nelson December 19, 2022

Downtown Washington, D.C., is confronting many of the same pandemic-generated challenges as other urban markets across the United States. This includes above-average and record high commercial vacancy (office and retail), as well as lower-than-average daytime foot traffic, in part due to an increase in hybrid work. Yet there is a case to be made that now is a unique moment for leasing office (and retail) space in the District’s central business district (CBD). The loss of foot traffic has hit downtown retail particularly hard, especially fast-casual dining. Coffee shops and sandwich places that depend on office workers have closed at a higher rate than other food-related retail. But the pedestrians are coming back. Kastle Systems’ data from the DowntownDC Business Improvement District (BID) shows an increase since Labor Day in the number of workers at their desks, with approximately 42 percent of the pre-pandemic number of employees in-office on a weekly basis, compared with around 33 percent last spring. This is expected to rise as more employers establish return-to-office policies. Despite 2022’s turbulent economy over the first six months, D.C.’s office leasing activity was up 16 percent compared with the first half of 2021, according to Cushman & Wakefield. The …

December 19, 2022

Affordable Housing Market Reports Multifamily Washington Western Western Market Reports

Multifamily Deals, Development Slow in Seattle After Breakneck Run

by Jeff Shaw December 16, 2022

It’s been quite the run for Seattle. Like many secondary markets out West, the Emerald City was a pandemic darling, racking up loads of new residents and workers over the past few years. Seattle-area employers added more than 102,600 workers in 2021 alone, according to Marcus & Millichap’s second-quarter market report, which predicts the area will add another 85,000 workers by year’s end. The report also forecasts Seattle’s population will increase by more than 220,000 residents over the next five years. All this activity has led to a bull run for multifamily owners, investors and developers. Net absorption in Seattle’s central business district surpassed the 5,000-unit mark for the first time on record last year, while rents have risen by 14 percent year over year. Demand was so fierce that all 20 of the metro’s submarkets recorded vacancy compression over the past four quarters, resulting in an average 2.8 percent vacancy rate, according to Marcus & Millichap. This is the lowest rate in two decades. Nearly 9,000 units — representing 1.9 percent of the supply — were added over the 12-month period that ended in March, with another 25,000 units still under construction at the end of the second quarter. …

December 16, 2022

Industrial Market Reports Nevada Western Western Market Reports

Northern Nevada Industrial Sector Remains Solid Despite Economic Slowdowns

by Jeff Shaw December 16, 2022

By Nick Knecht, Senior Advisor, Industrial, Dickson Commercial Group The vibrancy and growth of the Reno-Sparks industrial market has solidified the region’s position as a premier distribution hub of the Western U.S. — even as we head into what is expected to be a nationwide economic slowdown in the near term. The third quarter continued the trend of positive net absorption of 469,970 square feet. This occurred even with four new construction deliveries totaling 1.7 million square feet, 98 percent of which was spoken for upon completion. This momentum is expected to continue to some degree, as our team is actively negotiating RFPs on each of our speculative big box listings, with space requirement inquiries coming in at a steady pace. Alongside this positive activity, our market has been affected by the economic turmoil that has started to take shape over the past two quarters, with similar trends discussed nationwide. A changing debt market has produced several price adjustments mid-transaction for buyers to stay within their underwriting thresholds. The number of developers aggressively acquiring land at a feverish pace has decreased as they face a higher cost of capital and tamp down rent growth assumptions to more reasonable levels. There …

December 16, 2022

Market Reports New York Northeast Northeast Market Reports Retail

New York City Retail Market Enters Phase of Discovery

by Taylor Williams December 15, 2022

By Taylor Williams The New York City retail market is currently functioning like an episode of The Price Is Right. Developers, investors, brokers and operators are all trying to attach fair values to rents and sales prices for spaces of all sizes and submarkets. But after a tumultuous period marked by a global pandemic and record inflation, followed by a string of severe interest rate hikes, accurately assigning those numbers is easier said than done — at least in some submarkets. According to data from JLL, at the end of the third quarter, the average rent throughout New York City was $290 per square foot, down 5.3 percent year over year. That figure represents an improvement from the second quarter of 2022, when rents posted a 12 percent decline on a year-over-year basis. In addition, JLL’s data shows that 58 new leases were signed in the third quarter. While that figure marks a decline of 13 percent from the second quarter, it also constitutes an increase of 7.4 percent on a year-over-year basis. These numbers suggest that after retail leasing and sales completely stagnated in 2020 due to an unprecedented public health crisis, the market corrected sharply in 2021 and …

December 15, 2022

California Industrial Market Reports Western Western Market Reports

Despite a Slowdown, San Bernardino’s Industrial Outlook Remains Strong

by Jeff Shaw December 13, 2022

By Rick John, Executive Vice President, Ontario Branch Manager, DAUM Commercial The San Bernardino industrial market is experiencing strong market fundamentals as it’s home to 18 percent of the Inland Empire East’s nearly 245 million square feet of industrial space. The city also commands one of the highest prices per square foot across the market, exceeding $300. Although vacancy rates for the Inland Empire East increased for the first time since the pandemic – jumping 14 basis points and ending at 1.1 percent for the third quarter – overall vacancy in San Bernardino remains historically low. In fact, it’s among the lowest in the region at 0.24 percent. This incremental increase in vacancies was primarily seen among smaller buildings, while larger buildings of 500,000 square feet or more continue to be in short supply as vacancy remains near zero. Consistent low vacancy and competition for space are encouraging large companies to pre-lease new developments in the construction pipeline. This has helped bring gross leasing activity to near pre-pandemic levels. In September, Shein signed the largest lease within the Riverside-San Bernardino metro for the quarter with plans to open a 1.8-million-square-foot distribution center that’s currently under development in Cherry Valley. Due …

December 13, 2022

Market Reports Nevada Office Western Western Market Reports

Office Vacancy Declines in Reno as Sublease Availability is on the Rise

by Jeff Shaw December 9, 2022

By Melissa Molyneaux, Executive Vice President, Colliers Northern Nevada’s office market has continued to post strong fundamentals this year. Positive tenant demand has improved vacancy in recent quarters, though an uptick in available sublease space could impact market-wide vacancy in the future. The Reno-Sparks region has also seen a handful of new speculative office construction starts that will add trophy office and medical office space to the downtown and South Meadows submarkets. Strong economic recovery has been evident this year as Nevada reached a new employment peak of nearly 1.5 million jobs in June. Washoe County’s population has grown an impressive 17.1 percent since 2010, to 500,000 people. A study by Woods and Poole Economics estimates the area will reach 764,000 people by 2060. Market-wide vacancy rates dropped to 10.6 percent in the third quarter of 2022, down 200 basis points year over year. Downtown vacancy fell 310 basis points to 11.7 percent, while suburban vacancy fell 180 basis points to 10.3 percent in the same period. Vacancy has continued to improve since the onset of the pandemic, though the Reno area has started to see an increase in available sublease space hitting the market. About one quarter of all …

December 9, 2022

Industrial Life Sciences Market Reports Northeast Northeast Market Reports Pennsylvania

Logistics, Life Sciences at Center of Philadelphia’s New, Transformational Development

by Taylor Williams December 8, 2022

By Andrew Chused, founding partner, head of investments, Hilco Redevelopment Partners From the nation’s beginning to modern times, Philadelphia has been a bellwether city with a proud legacy of leading the nation to many of its firsts, including the country’s inaugural medical school, library, hospital, business school and stock exchange. In this city of firsts, Hilco Redevelopment Partners (HRP) is unlocking and reinventing a large portion of the city: the former 1,300-acre Philadelphia Energy Solutions (PES) site on the city’s southwest side. Not only is the redevelopment of this site transforming a relic of the city’s industrial age into a new, sustainable economy for the first time, but the project will also transform the way logistics and life sciences companies grow in southwest Philadelphia. An Economic Hub The site, aptly named The Bellwether District, represents a new ecosystem for a variety of tenants, including logistics, e-commerce and life sciences. Located in the shadows of University City and along the Schuylkill River, the project will create over 32,000 jobs and serve as an economic catalyst that drives growth to the city and region for generations to come. Upon its acquisition of the property in June of 2020, HRP quickly began the …

December 8, 2022

California Market Reports Retail Western Western Market Reports

San Bernardino’s Retail Leasing Market Thrives

by Jeff Shaw December 7, 2022

By Ryan Gast, Vice President, Ontario/Inland Empire, CBRE We are currently seeing a very strong leasing market in San Bernardino County, which is mostly driven by the amount of new housing developments in the market and the lack of new retail product being built. Tenants are hungry for the top-tier shopping centers, which has driven the vacancy rates down and rents up in a market where there seems to be a lot of uncertainty in the air. Some of the most active retail categories include the fast feeders (QSRs), gas stations and car wash groups. Discount retailers also hold great appeal, particularly due to inflation. The market has also seen an increase in activity from fitness users who stopped dead in their tracks during 2020 and 2021 due to COVID. As active retailers go, Stater Bros, Hobby Lobby, Burlington, 99 Ranch Market, Ross and Planet Fitness have all recently inked deals in the area. Sprouts, Quick Quack, Shell, Raising Cane’s and Dutch Bros Coffee also remain active. Many of these retailers are seeking high-growth areas where there has been an influx of residential development nearby. In terms of developers, Lewis Retail, Wood Investments and Rich Development are some of the …

December 7, 2022

Market Reports Office Texas Texas Market Reports

Texas Office Users Trade Lengthier Terms for Tenant Improvement Dollars

by Taylor Williams December 6, 2022

By Taylor Williams Success in today’s office sector is all about creating incentives. Some companies, from small professional services outfits to tech giants like Salesforce and Airbnb, have completely capitulated to remote work and have aggressively slashed their office footprints. Others remain dogged in their commitments to nonresidential (and nonretail) workspaces. What works for one company may not work for its competitors, and there remains a fundamental need for at least some traditional office space across all major markets. Against this backdrop, what separates the winners from the losers is the ability to create a draw, to give people legitimately good reasons to get up earlier, spend more time getting ready, endure traffic, put costly mileage on their cars, then deal with whatever quirky goings-on define their office experience. Needless to say, this can be a tough sell, especially for employees with families and suburban commutes. Which is why owners, both of businesses and of the office buildings that house them, are getting creative. These corporate leaders and landlords are working in tandem to ensure that the spaces meet the precise needs of their workforces, from design and layout within the suite to access to onsite amenities and surrounding retail, …

December 6, 2022

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