Market Data

Market Trends Online(18)

Best Nests for Nurturing Small Businesses
Small businesses are economic engines, accountable for 60 percent to 80 percent of new job growth, according to the Small Business Administration. Bizjournals.com rated the 75 best locations for the creation of small businesses (companies employing less than 99 people), based on population growth, economic expansion, and the density of small businesses in the metropolitan area.

Top 5 cities Change in
small businesses,
2000-2005
Bottom
5 cities
Change in
small businesses,
2000-2005
Orlando, FL 25.1% Springfield, MA -8.4%
Sarasota-Bradenton, FL 24.7% El Paso, TX 3.4%
Miami-Fort Lauderdale, FL 14.0% Dayton, OH -2.0%
Las Vegasm NV 29.0% New Orleans, LA -1.3%
Jacksonville, FL 19.1% Memphis, TN. 0.0%

Midyear Market Glance
Office: 78 million sf of office space will come online by year-end and vacancy rates will range between 12.5 percent and 13.5 percent.

Industrial: Leasing and absorption is strongest in California and South Florida, although southwestern cities including Tucson, Ariz., Las Vegas, and Albuquerque, N.M., are seeing increased warehouse and distribution demand.

Retail: Institutional and foreign investors accounted for 60 percent of all retail transactions in the first four months of the year.

Multifamily: Reverse condominium conversions are occurring in many markets, but the vacancy rate should remain between 5.5 percent and 5.9 percent through year-end.

Source: Commercial Real Estate Outlook

1Q08 Forecast
Sector Vacancy rate Inventory Rent growth
Office 13.3% 3.4 million sf 0.7%
Industrial 9.2% 12.3 million sf 0.8%
Retail 8.6% 1.6 million sf 0.4%
Multifamily 5.7% 14 million units 1.0%

Source: National Association of REALTORS®/TWR

Southern Office Markets Post Lowest 2Q07 Vacancies
For the second straight quarter, Charlotte, N.C., had the lowest U.S. downtown vacancy rate, followed by midtown Manhattan (4.8 percent), downtown Manhattan (7.0 percent), Boston (7.1 percent), and Las Vegas (8.5 percent), according to the CB Richard Ellis 2Q07 Office Vacancy Index Report. Overall the national downtown office vacancy rate was 10.6 percent, down slightly from 1Q07. The national suburban office vacancy rate was 13.7 percent, with Miami posting the lowest suburban market vacancy rate at 6.5 percent, followed by Fort Lauderdale, Fla. (7.0 percent), Orlando, Fla. (7.7 percent), San Jose, Calif. (8.4 percent), and Los Angeles (8.5 percent).

Oklahoma Is OK for Multifamily Investors
Oklahoma’s low rental rates are attracting out-of-state multifamily investors who see an opportunity to improve cash flow, according to Commercial Realty Resources Co. in Tulsa. Total multifamily sales volume in Oklahoma City is up 91 percent over midyear 2006, and average price per unit is up 51 percent over last year. Buyers from California, Missouri, Nebraska, Utah, and Arizona have been driving the market.

Oklahoma Multifamily Snapshot, Midyear 2007
Market Average price/unit No. of units sold
Oklahoma City $75,722 4,869
Tulsa $30,394 3,650

 

Hotel Investor 6-Month Outlook
Based on a survey of 6,000 U.S. select- and limited-service hotel owners and investors

Investment strategy Property focus
for acquisition
and development
Regional focus
for acquisition
and development
39% - Hold
32% - Buy
21% - Build
8% - Sell
43% - Midmarket
38% - Upper midmarket
12% - Extended stay
7% - Economy
35% - Southeast
18% - Southwest
12% - Mid-Atlantic
12% - Midwest
10% - Northeast
4% - Northwest
9% - California

Source: Jones Lang LaSalle Hotels

Indicative Construction Costs
Price psf range as of July 1, 2007; includes labor and materials, general contractor and subcontractor fees, and taxes

Metro area Class A office Strip center Warehouse Multifamily
Boston $185-$265 $90-$140 $65-$90 $125-$190
Denver $135-$220 $65-$125 $60-$90 $70-$145
Orlando, Fla. $125-$225 $65-$120 $60-$95 $70-$140
Phoenix $140-$220 $85-$140 $55-$80 $80-$205
Portland, Ore. $155-$195 $75-$120 $45-$75 $80-$160
Source: Rider Levett Bucknall

Recommended

Building Progress

Fall 2020

Moody's Analytics Reis Chief Economist Victor Calanog, Phd, CRE, outlines how construction in many sectors will fail to meet expectations for 2020.

Read More

This Is the Altered Normal

Fall 2020

Esri’s data on consumer behavior, demographics, and employment can help real estate adapt in the COVID-19 world.

Read More

The CMBS Stress Test

Summer 2020

The commercial mortgage-backed securities market is particularly vulnerable amid the COVID-19 pandemic, with borrowers and lenders looking for creative solutions to unprecedented problems.

Read More

Market Trends in Commercial Real Estate

Summer 2020

Office Renters Change Priorities in Wake of Pandemic | Recreational Real Estate on the Rise | Case Study: COVID-19's Impact on Eastern PA Big-Box Market | Hospitality Owners Have Reservations as Occupancy Drop | Seniors Housing Responds to Mounting Pressure from Pandemic | Mixed-Use Developments Can Keep It Local | Supply Chain Reacts to Social Distancing | Self-Storage Weathers Early COVID-19 Storm

Read More