Regional Outlook

Sept.Oct.19

{Southeast}

Atlanta’s Big Deal
Columbia Property Trust has sold One and Three Glenlake — two Class A office towers in Atlanta’s Central Perimeter — to Starwood Property Trust for $227.5 million. The 706,000-sf campus was renovated in 2016 and fully occupied. Tenants include the headquarters of Inspire Brands, as well as offices for Oracle and Comcast. The campus also includes an on-site conference center, fitness center, and cafe.

Source: Commercial Property Executive 

{Southwest} 

Premium Prices for Downtown Living
Apartment dwellers in downtown Austin, Texas, paid the highest premium for their urban core location — 92 percent over its market average rent. The highest U.S. markets for downtown premiums: 

Retail Thriving in Fast-Growing Phoenix
The Phoenix-Mesa-Scottsdale metro area has the top population growth in the nation; between 1Q2018 and 1Q2019, the area gained 96,268 people. See the effects of this growth on retail as of 1Q2019: 
Rental Rates
$16.09 psf (up from $15.85 in 4Q2018) 
YOY Rent Increase
5.5%
Square Feet of Retail Space Under Construction
875,000
Total Sales Volume
$370 million

Source: Avison Young

{National} 

MOB Action
The most active 2018 markets for medical office building, ranked by transaction volume:

Source: “Healthcare Real Estate Outlook—United States,” JLL

Demand Fuels Spec Warehouse Construction
More than 255 million sf of warehouse space was under construction in June, with 70.2 percent built on speculation. Here are the top 10 markets for warehouse space under construction on spec:

{Midwest} 

WeWork Is Largest Chicago Office Tenant 
Need another indicator of the strength in the coworking market? WeWork is now the largest tenant leasing office space in Chicago. The New York-based company signed its 12th Chicago lease in June; the deal, for a 92,000-sf space, pushed WeWork’s Chicago leases to more than 1 million sf. The company, says the Chicago Tribune, is also the largest office tenant in Manhattan, Washington, D.C., and London.