Market Reports

How New York City Construction Firms Can Position Themselves for Leadership Transitions

by Taylor Williams August 25, 2021

By Phil Ross, CPA, accounting & audit partner, Anchin, Block & Anchin LLP After nearly 15 months of shutdowns and restrictions, New York City has taken a major step forward. Seventy percent of the city’s residents are now vaccinated, and restrictions significantly reduced across the area’s commercial spaces, from offices and retail to dining and hospitality. Mask mandates have been lifted and the hum of the metro area’s business districts is growing loud again. With an expected increase in demand for building upgrades and repositioning services to meet new market needs, as well as new projects across housing, infrastructure and healthcare, the construction sector is poised to see a more robust pipeline. During the pandemic slowdown, construction firms were understandably more focused on the short term. But with the market back on the upswing, now is the time to refocus on long-term goals and strategies. A major part of this is ensuring you have an internal organizational pipeline to continue growth well into the future and maintain your firm’s legacy of success. This is just as important as creating a business development strategy and building up a backlog of projects. Transitioning a construction business for the next generation and beyond …

August 25, 2021

Market Reports Texas Texas Market Reports

Supply of Capital Exceeds Available Deals in Texas

by Taylor Williams August 24, 2021

By Taylor Williams There is a pronounced imbalance between the amount of capital looking for placement in commercial real estate in Texas and the number of available deals on the market, making it a good time to be a borrower or seller. In addition to the time-tested fundamentals that have fueled growth in Texas over the last decade — exceptional job and population growth, corporate relocations, a low-regulation business environment — the state has seen elevated capital flows over the last nine months as a leader in reopening and supporting its economy in response to COVID-19. The fact that the state’s economy never really had a prolonged, major shutdown during the pandemic means that investors have had more reliable data about cash flows and other key metrics for Texas real estate assets than in many other markets. Access to that data has reduced some of the uncertainty that investors despise but which has been rampant over the last 17 months. As a result of these factors, more capital sources are targeting deals in Texas. “The inflow of capital to Texas from all parts of the country has been tremendous, dating back to the late third and early fourth quarters of …

August 24, 2021

Market Reports Multifamily Washington Western Western Market Reports

Seattle’s Apartment Market Roars to Life

by Jeff Shaw August 23, 2021

By Dylan Simon, Executive Vice President and Multifamily Specialist, Kidder Mathews It’s always easy to pick on the new kid. Seattle has enjoyed its emergence as a global city and, as such, exemplified “New Kid-itis” — yet it’s roaring back to life, and critics should take notice. It was only 18 months ago that Seattle could do no wrong. The city was teeming with young, upwardly mobile and highly employable apartment renters clamoring for places to live while selecting high earning jobs of their choice. Skyrocketing demand across nearly all sectors of commercial real estate was palpable, especially apartments. The impacts of COVID-19 and social unrest that ravaged the nation had a disproportionate impact on many urban centers. Arguably, its effects on Seattle lingered the longest. Demand for high-rise office space remained questionable as apartment renters second guessed urban living altogether. Civic dysfunction amplified the questioning of downtown Seattle’s livability, causing the apartment market to noticeably suffer. Yet spring is a time for regeneration and growth, and spring 2021 marked a turning point for the Seattle region and the entire apartment market. Occupancy Returns to Pre-Pandemic Levels The Seattle region’s multifamily market unquestionably enjoyed a bull run this past decade. Average …

August 23, 2021

Data Centers Industrial Life Sciences Market Reports North Carolina Southeast Southeast Market Reports

Life Sciences Firms Dominate Activity in Raleigh-Durham’s Industrial Market

by John Nelson August 23, 2021

It seems as though we have recently seen significant weekly announcements about investment and job creation by major U.S. companies into the Research Triangle Park region, the area situated between the cities of Raleigh and Durham. For instance, tech titans Apple and Google declared plans to establish major engineering hubs in the region, adding heat to an already dynamic market. It is common knowledge that the Triangle area is respected for its large, highly educated workforce thanks to top-ranking colleges and universities, including Duke University, North Carolina State University and University of North Carolina at Chapel Hill. Wake Tech, North Carolina’s largest community college, also serves as a vital engine, providing the region’s workforce with STEM candidates. These institutions supply existing and expanding businesses with an impressive talent pool. Theses factors, along with a business-friendly economic climate, have grown the Research Triangle into one of the nation’s largest research centers. Although local headlines continue to buzz with real estate business news, the Raleigh-Durham industrial market has witnessed steady real estate investments from life sciences and R&D businesses for decades. Over the past 24 months, however, demand for life sciences space has had a dramatic impact on traditional flex/light industrial users …

August 23, 2021

Market Reports Multifamily Texas Texas Market Reports

Austin Multifamily Market Continues Meteoric Rise as Investors Target Central Texas

by Taylor Williams August 20, 2021

By Andrew Dickson, managing director, Newmark Almost daily, Newmark’s Central Texas multifamily capital markets group speaks with investors looking to enter the Austin multifamily market. With headlines aplenty about corporate relocations to the city, investors are often looking to trade tax-burdensome environments for business-friendly ones like Texas. What is driving the interest, and what is it actually like buying multifamily assets in Central Texas today? Economic Synopsis According to data from Opportunity Austin, the economic initiative of the Greater Austin Chamber of Commerce, more than 100 companies have made relocation or expansion announcements in Austin, resulting in over 15,000 jobs pledged through June 2021. Opportunity Austin tracked 22,114 new jobs announced in 2020 — a record-breaking year — and the city is presumably on its way to another record-setting year in 2021. It is worth noting that many of the jobs announced in 2019 and 2020 are still forthcoming. Like many industries, tech firms often cluster together. Whether relocation announcements are due to existing synergies with other firms or cost-reduction strategies, we anticipate the trend of tech or tech-adjacent companies moving to Central Texas to continue. Due to these local shifts, as well as macroeconomic housing impacts, the single-family housing …

August 20, 2021

Market Reports Michigan Midwest Midwest Market Reports Multifamily

Why Multifamily Investors Are Revved Up for the Motor City

by Kristin Harlow August 19, 2021

By Jason Krug, Berkadia Sunbelt states are top of mind for multifamily investors these days, as COVID-19 has accelerated the trend of renters leaving major cities in search of more space and a better cost of living. Of course, the allure of sunshine and warm weather is hard to compete with, but cities across the Midwest are also seeing a spike in interest from renters and investors and chief among them is Detroit. There has been overwhelming interest in multifamily opportunities in and around the city, as investors looking for yield move beyond core and core-plus markets in search of real value deals, which Detroit has aplenty. So, what’s driving this interest, and why should more investors be paying attention to Detroit? There are a few key reasons. Solid fundamentals Limited supply of new units being delivered across the state will continue to drive organic rent growth. As is the case across the country, there is a shortage of housing throughout Detroit and the metro area. Although Detroit’s population growth is smaller compared to the South and Southeast, the region has a fraction of the units coming out of the ground as the South and Southeast, paving the way for …

August 19, 2021

Life Sciences Market Reports Office Oregon Western Western Market Reports

Portland Office Demand Returns as the City Reopens

by Jeff Shaw August 18, 2021

By Tim Harrison, Research Manager, JLL After one the strictest and longest shelter-in-place orders in the nation, Oregon is officially back open for business and all signs point to a strong recovery in Portland. People are travelling again, with airline passengers through Portland International Airport totaling more than 1 million in May. This represents about 63 percent of the normal 2019 monthly average, according to the Port of Portland’s aviation stats. Perhaps most importantly, people are returning to the downtown core for both business and pleasure with weekly visits through Pioneer Mall — the center of downtown — up to about 70 percent of 2019’s average weekly visits, per Placer.ai. This optimism is transferring to the office market, where Portland leasing activity is up more than 33 percent year over year. The recovery is being led by industries old and new. Out in the suburbs, Portland’s largest apparel companies are expanding on campus, while new leases were signed by Lululemon and On-Running in newer creative spaces on the urban fringe. Portland’s life sciences sector is approaching a critical mass as Bay Area company Twist Biosciences entered the market by absorbing 215,000 square feet. Meanwhile, Vancouver, Wash.-based AbSci raised more than …

August 18, 2021

Healthcare Life Sciences Market Reports Multifamily Northeast Northeast Market Reports Office

How Multifamily Owners Can Cater to the Northeast’s Growing Base of Life Sciences Renters

by Taylor Williams August 17, 2021

By Justin Wybenga, vice president of asset services, GMH Communities Every day, we see the world constantly changing. Whether it’s advancements in technology, culture, arts or sciences, there are many things to look forward to as life and business return to normal. One sector of commercial real estate that continues to experience breakthroughs is life sciences. Case in point: Mayor Bill de Blasio and the NYC Economic Development Corp. announced that the organization would double its investment to $1 billion to establish New York City as the global leader in life sciences. With the increasing demand for research and lab space comes an emerging need for innovative housing that supports the rapidly growing population of researchers, professors, graduate students and third-shift workers. Historically, amenities and services for this group have been an afterthought. We saw a void in this space and recently launched a completely new vertical called “Innovative Living.” Innovative Living takes best practices from conventional multifamily and student housing, including cutting-edge technology and best-in-class amenities and services, and tailors those features to accommodate the specific needs of professionals and graduate and postgraduate students working or learning in major innovation hubs. Understand Residents’ Needs Fostering a collaborative living environment …

August 17, 2021

Industrial Market Reports Texas Texas Market Reports

Austin’s Industrial Market Reaches New Heights — But Will It Stay There?

by Taylor Williams August 16, 2021

By Bob Mohr, chairman, Mohr Capital When people talk about Austin, they call it one of the best places in the country to live. They talk about the live music scene, the die-hard fans who flock to The University of Texas football games and the hills sprouting bluebonnets. They talk about Austin attracting California residents and companies during the pandemic, bolstering the city’s tech base and positioning it as a significant Silicon Valley rival. They talk about office demand and the increasing costs of single-family housing. Few people mention Austin’s industrial market, but they really should, because there’s a heck of lot to talk about. At 55 million square feet, Austin’s industrial market is still fairly small, especially compared with the Lone Star State’s big three metros of Dallas-Fort Worth (DFW), Houston and San Antonio. Despite its size, the Austin industrial market is experiencing significant demand from various companies, particularly e-commerce and service-related tenants. And even though Austin tends to be a bit of a bubble market, money is flowing in the form of new construction and investor interest. Absorption Pushes Occupancy Historically, Austin has not been a big box warehouse market. Most industrial inventory is smaller, developed to cater …

August 16, 2021

Market Reports Multifamily North Carolina Southeast Southeast Market Reports

Charlotte’s South End Remains ‘Go-To’ Submarket for Young Renters

by John Nelson August 16, 2021

Charlotte’s South End district has firmly established itself as one of the most dynamic millennial urban submarkets in the Sun Belt. It is increasingly on par with the most thriving areas in other growth cities such as Atlanta, Austin and Nashville and is becoming a 24-hour neighborhood with dining, nightlife and high-end jobs. Charlotte is one of the few cities in the region that has both a true city center as well as a relevant mass transit system. The city’s LYNX Blue Line, which runs from Interstate 485 to the University of North Carolina at Charlotte’s main campus, has proven to be very meaningful for the local multifamily market. LYNX was the catalyst driving South End’s emergence and gives the neighborhood its own heartbeat as renters can commute to Uptown for work or UNC Charlotte for class. Developers are taking note with several apartment projects and mixed-use developments underway in the area, including Broadstone Queen City and Haven South End. As South End has grown into a more dynamic district, Charlotte is becoming an even more attractive destination for recent college grads who are looking to work in the city’s established financial sector, as well as for firms like Lending …

August 16, 2021

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