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.
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:
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
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
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.
Houston Industrial Healthy
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
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.
Capital Gains: More
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.