19 Cities Commit to Net-Zero Carbon Buildings
A worldwide coalition of 19 mayors recently signed the Net Zero Carbon Buildings Declaration, pledging to make all new buildings in their cities net-zero carbon by 2030 and all buildings — old and new — net-zero by 2050. Seven U.S. cities are in the coalition, which represents 130 million
urban residents worldwide. U.S. members include Los Angeles; New York City; Portland, Ore.; San Francisco; San Jose, Calif.; Santa Monica, Calif.; and Washington, D.C.
Source: The C40 Cities Climate Leadership Group
Seniors Housing Occupancy Dips
The occupancy rate for seniors housing in the U.S. in 2Q2018 was at its lowest level since 1Q2010, when it was 86.9 percent, 2.3 percentage points below its most recent high of 90.2 percent in 4Q2014.
Source: National Investment Center for Seniors Housing & Care
Medical Office Sales Market Leaders
New York, Chicago, Houston, Atlanta, and Milwaukee led the U.S. markets in medical office sales in the first half of 2018. Combined total sales for the five cities was $1.5 billion; sales across the country totaled $1.87 billion.
Source: Avison Young Mid-Year Medical Office Update
A Place for Everything
Nashville, Portland, and Boston lead the way in construction of self-storage inventory under construction.
Source: Yardi Matrix
Sharp Rise in Single-User Industrial Sales
Investors spent $13.2 billion on single-user industrial properties in the U.S. in 2017. The 1,158 properties sold totaled 171.4 million sf, up 45.4 percent from 2016.
Los Angeles: $1.2 billion
Las Vegas: $1 billion
New York City: $897 million
San Francisco: $841 million
Greensboro, N.C.: $452 million
Source: Avison Young
Top 10 Industrial Markets
Of 47 U.S. industrial markets surveyed, 37 posted positive absorption in 2Q2018, and 43 of the 47 posted positive absorption for the previous 12-month period.
Top Commercial and Multifamily Construction Starts
Source: Dodge Data & Analytics
Industrial — Demand for lab space rose sharply and should continue to grow, thanks to a combination of new technology, venture capital research funding, and an aging population, according to CBRE’s 2018 U.S. Life Science Report. The report notes that employment in the life sciences sector rose 13.5 percent
between 2006 and 2016, compared to 6.9 percent overall U.S. employment. Life sciences companies “are converging on markets with concentrations of scientific talent, amid deep-seated growth drivers and industry disruption,” and rents for lab space in premier markets like
Cambridge, Mass., have increased more than 50 percent in the last three years.
Hospitality/Multifamily — Pop-up hotels are coming to a city near you. Lodging service WhyHotel opened facilities in Baltimore and planned to open another in October in Washington, D.C. WhyHotel books empty units in newly-built luxury apartment buildings during their lease-up phase; guests stay
in furnished apartments of varying sizes and can use building amenities. USA Today reports that the first WhyHotel popup in D.C. — which was open for five months — comprised 50 units out of a 699-unit building; after 60 days, the pop-up occupancy rate jumped to 85 – 90
Office — More than 200 U.S. coworking companies are operating at least one 5,000-sf location, according to Cushman & Wakefield. In its recent Coworking and Flexible Office Space report, the company says that 50 percent of all current U.S. coworking space has opened since 2015. The largest player: WeWork, which in the
first half of 2018 accounted for eight times as much newly leased space as the other nine largest companies combined. The company is now the largest tenant in Manhattan at 5.3 million sf, according to The Wall Street Journal. While coworking space only accounts for 1 percent of total office inventory, Cushman
& Wakefield predicts that in the near future it could represent between 5 percent and 10 percent in some markets.
Retail — Looking to fill empty space, mall operators are opening retail incubators in vacated stores, reports CoStar. The incubators give startups the opportunity to test retail concepts, offer variety to mall visitors, and give operators a chance to spot new tenants with growth
potential. In a related move, REIT leader Macerich has partnered with coworking company Industrious to operate coworking spaces in some Macerich properties; the first location will open in January at Scottsdale, Ariz., Fashion Square.