Regional Outlook

{southeast}

Norfolk’s Big Deal

Norfolk, Va.-based Harbor Group International completed the sale of three separate apartment portfolios for a total of $700 million. The portfolios included 12 properties with 3,100 units in Dallas and Houston; seven properties with 2,284 units in central Florida; and two properties with 5,658 units in Connecticut. The 21 properties were sold to 15 different buyers.

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{national}

Healthy Affordable Rental Markets

Workforce housing, with its low vacancy rate and above-average rent  growth, has outperformed the overall multifamily market in recent years, says CBRE Research. The top U.S. metros for Class B rent growth include:

Source: CBRE

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{national}

Fastest-Growing U.S. Cities

Oxford Economics’ November 2018 “Global Cities” report  identified U.S. cities forecasted to be the fastest growing between 2019 and 2035. 

Source: Oxford Economics, MarketWatch

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{west}

Filling San Francisco Storefronts

San Francisco Mayor London Breed announced the Citywide Storefront Vacancy Strategy “to retain, strengthen, and attract businesses to commercial corridors throughout San Francisco,” according to Medium.com. The city will allocate nearly $1 million to foster development of small businesses through legislation, new programs, and administrative reforms to ease the business permit process.

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{southwest}

Houston Industrial Healthy

Houston’s industrial market ended 2018 on a high note. The city’s vacancy rate remains steady at 5.4 percent in 4Q2018, despite an increase in development, according to NAI Partners.

Source: NAI Partners

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{southwest}

Denver: High Interest for Tech 

Denver’s low unemployment rates and relatively affordable housing have put it in fast competition with Silicon Valley for tech companies. At least 22 tech companies opened an office or relocated their headquarters to the Denver metro area between October 2017 and October 2018. Tech firms’ annual absorption of office space in Colorado was 849,000 sf between 3Q2017 and 2Q2018 — with downtown Denver leading the way with 472,282 sf, followed by Boulder with 377,000 sf, Bisnow reports. Employers also are getting a boost from the “Pivot to Colorado” campaign, a self-proclaimed poaching strategy designed to recruit tech talent backed by several state agencies and nine tech companies.

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{east}

Capital Gains:  More D.C. Construction

The Washington, D.C., area reported strong job growth at the end of 2018 as well as 2.4 million sf of net absorption, its highest figure since 2010. However, Cushman & Wakefield reports that some of the region’s submarkets could be in transition. Office markets in the central business district and East End face competition from lower-cost emerging markets in NoMa (north of Massachusetts Avenue), the Capitol Riverfront, and the Wharf. In the last two years, several federal agencies,  not-for-profits, and legal-sector groups have relocated from the two core markets. On the other hand, demand from large law firms for new construction has driven unprecedented development in the District itself.

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