Emerging Trends Shaping Real Estate in 2018

Written on November 01, 2017 at 04:31 PM
The immediate future of real estate looks positive, according to t he Urban Land Institute and PwC’s annual look at the year ahead. The 2018 Emerging Trends in Real Estate report, which  compiles more than 800 individual interviews and 1,600 surveys of real estate experts, predicts a 'long glide path to a soft landing' as the economic cycle runs its course, but does not forsee a sudden drop in altitude. 
 
One of the emerging trends is investors' increasing appetite for secondary markets. The 2018 outlook for secondary markets increased nearly 12 percent compared with the 2013 survey. Over the same time period, the investment outlook for primary markets has decreased by 6 percent.  According to the survey, secondary markets have outpaced the primary cities because investors are better educated, secondary markets haven’t become as overbuilt as they were in previous cycles, foreign capital has grown and seeks a safe home, and the growth in many of these cities seems much more sustainable and long-lasting.
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Categories: Office, Washington, Real Property, Retail

Forbes: 5 U.S. Cities Poised To Become Tomorrow's Tech Meccas

Written on May 30, 2017 at 04:06 PM

While Silicon Valley remains the nation’s most vibrant tech center, the area's innovative spirit is spreading across America. More than two-thirds of tech workers now feel little or no need to live in the Bay Area, and talent is migrating to new metropolisesBelow are 2017s Top 5 tech meccas looking to overthrow Silicon Valley, according to Forbes. 

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Categories: Washington, Georgia, Hi-Tech, Colorado, California, Oregon, Utah

The 10 Suburban Office Markets with the Highest Rent Increases

Written on April 18, 2017 at 02:51 PM

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:

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Categories: South Carolina, Office, Washington, Georgia, Real Property, Tennessee, Massachusetts, California, Florida, Kentucky

10 U.S. Markets with Lowest Logistics Yields

Written on January 09, 2017 at 04:55 PM

Fueled by the rapid growth of e-commerce, the U.S. industrial market is benefiting from tight supply and rising rents and is expected to enjoy sustained momentum throughout 2017.  To track the most in-demand markets, real estate services firm CBRE put together a list of cities and regions with the lowest prime yields on logistics assets. The average prime yield for the U.S. is currently 5.84 percent.

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Categories: New Jersey, Industrial, Washington, Real Property, Illinois, Texas, California, Florida, Warehouse

Report: Top 10 CRE Markets to Watch in 2017

Written on October 31, 2016 at 04:37 PM

The Urban Land Institute and PwC recently released Emerging Trends in Real Estate 2017, an in-depth outlook report that reflects the views of more than 2,000 professionals in real estate development and investment who completed surveys, conducted interviews, or participated in focus groups as part of the research process. The reports includes a "Markets to Watch" section, that takes an expanded look at all 78 markets included in this year’s survey. 

Survey respondents shuffled the markets a little for 2017. Austin, which has been a fixture in the top ten for the past few years, is getting its turn at the top. Austin's market has benefited from a diverse economy that was affected in a minimal way by the global financial crisis, a growing population base made up of an educated labor force, and the undeniable “hip” factor that makes Austin attractive to the millennial dominated workforce.

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Categories: South Carolina, Washington, Real Property, North Carolina, Tennessee, Texas, California, Oregon

NREI: Best and Worst Office Markets for Revenue Growth

Written on September 21, 2016 at 03:02 PM

Based on data recently released by Research firm Reis Inc that shows office markets with the biggest year-over-year changes in effective revenue per sq. ft. during the second quarter of 2016, the National Real Estate Investor provided a market snap shot of the top five best and worst performers. The tech sector continues to have a big influence on boosting performance in many office markets. And while it may not be entirely fair to single out some of the laggards on the list, there are some clear trends there as well. According to Reis, smaller tertiary markets continue to struggle to rekindle economic and job growth that will fuel demand for more office space.

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Categories: Office, Washington, Real Property, Wisconsin, Virginia, Ohio, California, Kentucky

Survey: 11 Best Non-Gateway Cities for CRE Investment

Written on May 05, 2016 at 05:31 PM

Due to low cap rates and sky high prices in gateway cities, many commercial real estate investors in search of good yield are turning to non-gateway markets as a more appealing and affordable option. A recent “State of the Market” survey by global law firm DLA Piper found that 78 percent of real estate professionals it surveyed agreed that non-gateway markets will come to the forefront of investment preferences in the next 12 months (33 percent said they agreed, and 45 percent said they somewhat agreed). The preference was more pronounced among domestic rather than foreign investors, DLA Piper reports.

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Categories: Washington, Georgia, Real Property, North Carolina, Colorado, Tennessee, Texas, Florida, Oregon

Tech Demand Driving Rapid Rent, Occupancy Increases for Seattle Office Market

Written on December 29, 2015 at 03:55 PM

As the Puget Sound/Seattle region has evolved into one of the nation’s leading markets for technology jobs, the office sector is reaping the benefits.  Fifteen new office towers are currently under construction in the central business district (CBD) and rents are rapidly increasing. According to the recent Global Prime Office Occupancy Costs survey from commercial real estate services firm CBRE, downtown Seattle experienced the most significant annual change in occupancy costs, increasing by 17.3 percent. A third quarter report from commercial real estate services firm Kidder Mathews found that the city’s downtown vacancy rate has dropped to 8.8 percent, back to pre-recession levels and are trending downward. Rents for the CBD have increased almost 10 percent year-over-year, according to a report from commercial real estate services firm Colliers, pushing value-minded office tenants to look at class-B and class-C buildings.

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Categories: Office, Washington, Real Property, Hi-Tech

Voters Saying Yes to $930M 'Move Seattle' Transportation Levy

Written on November 04, 2015 at 02:53 PM

It looks like Seattle voters have approved the "Move Seattle" transportation levy, as more than 56 percent of voters said ‘yes’ to the measure in a count Tuesday night, making it highly likely the measure will pass. Proposition 1 would spend a record-high $930 million over nine years on streets, bridges and other infrastructure improvements around the city. Property owners would shoulder the entire cost of the $930 million levy.

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Categories: Washington, Real Property

Seattle Apartment Market Expected to Cool Off

Written on September 22, 2015 at 10:53 AM

A warning to apartment investors: the Seattle is market is not as hot as it seems, and rent hikes in the Puget Sound region are slowing. This is according to a new report by Seattle research firm Dupre + Scott Apartment Advisors, which forecasts rents at older buildings will increase only 1.5 percent by next spring when job growth is expected to start slowing significantly. This is drastically lower than the 8.3 percent increase a year ago. However, the company found that the thousands of new apartments that have opened in 2015 distort market reality because new units typically garner a rent premium of more than 40 percent. "We call this the skew of the new," states the report, which found rents at buildings constructed before this year increased only 6.4 percent.

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Categories: Washington, Real Property, Apartments, Multi Family

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