In San Francisco, vacancy rose for the fourth consecutive quarter amid a surge of new supply, according to Cushman & Wakefield. A mixed-use development at 181 Fremont St. hasn’t announced any leases for its 432,000 square feet of office space, even though it is scheduled to open later this year. Asking rents in the Midtown Manhattan neighborhood of New York City, meanwhile, averaged $80.45 a square foot annually in the first quarter, compared with $81.16 at the end of the first quarter in 2016, according to CBRE Group Inc. The vacancy rate crept up to 11.9% from 11.6%. Overall, average asking office rents increased 1.8% between the first quarter of 2016 and 2017, the slowest annual rate of growth since 2011, according to Reis Inc.
By Jerry Heaton, Senior Managing Consultant, Dallas
The article below was published several years ago, and not only have the predictions come true, they have been surpassed more than anticipated. So far this year, the number of retailers filing for Chapter 11 Bankruptcy is headed toward the highest annual tally since the great recession, per Moody’s distressed list. Amazon is about to unseat Macy’s as the largest seller of clothing. Shopping malls are becoming extinct with Macy’s, Sears and JCPenney all hanging on by selling off real estate assets and closing stores. Just this month, two more women’s and teen apparel chains – Bebe Stores Inc. and Rue 21 Inc. – announced plans to shutter hundreds of stores in shopping centers across the nation. And while Amazon already dominates the book and electronic industry, they’re taking on big box grocery stores next.
For the past 25 years, Republican lawmakers have tried over and over again to cut the much-maligned business personal property tax in Colorado. State Senate members passed a bill Monday to increase the exemption for the business personal property tax by a hefty 27-6 margin — the kind of bipartisan agreement that one might think would lead to success for the bill in the House of Representatives. But when asked just hours before the vote about the chances for the long-sought GOP goal of making substantial cuts to business equipment tax, Senate President Kevin Grantham jokingly deflected the question by asking, “Hey, how about that nice weather we’ve been having?”
Although urban office markets continue to be popular with Millennials, movement to creative corporate office campuses in the suburbs is a growing trend. A recent report from commercial real estate services firm CBRE looked at vacancy rates and rental rate increases in a number of revitalized suburbs. A lack of new supply has driven rents up in the majority of these markets, while others are benefiting from outsized demand due to a concentration of specific industries, such as technology and bioscience. Below are the ten suburban office markets with the highest rent increases, according to the report:
By Stephen Cox
Consultant, Atlanta, GA
It's revaluation year in several Tennessee counties and property owners should be on the lookout for their new valuation notices if they haven't already received one. Hamilton County, Davidson County, and Shelby County are on a 4 year reappraisal cycle, with properties last being appraised in 2013. Given the significant improvement in both the overall economy and these counties specifically, commercial property owners should expect major valuation increases. Below you will find some notable information pertaining to each county:
Hotels in Silicon Valley, California are experiencing above-average performance and attracting the attention of owners and developers across the country, thanks to the widely successful international technology companies in the area bringing in an influx of business – as well as leisure – travelers. The Santa Clara/Silicon Valley area is shaping up to be one of the most desirable markets in California due to its lack of overbuilding, scarcity of land and barriers to entry.