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Office: Risk vs. Reward 

As capitalization rates continue to compress for core office assets, one red flag being raised is whether investors are biting off more risk than they can chew. Clearly, office buyers are willing to take on more risk as long as

Chasing Yield 

As competition for core properties continues to intensify, office investors have been casting a wider net to move capital off the sidelines and to capture higher returns. The question is, How much risk are buyers willing to assume when the

Stuck in Neutral 

A stubborn office market vacancy rate still hovers around 17.0 percent nationally in second quarter 2013, only marginally below its 17.6 percent peak in 2010. (See Reis sidebar, “The Numbers,” for a 2Q13 report.) This reflects the cautious attitude tenants

How Much Space Do We Need? 

No company ever seems to have the right amount of office space. Firms grow and shrink throughout the years for many reasons however, they must contract for space over a set lease term of five, 15, or even 20 years.

The New Bottom Lines 

Cost is still the main driver when most corporations consider the future of their office space portfolios, and for good reason. But according to Johnson Controls’ recent Collaboration 2020 study, this narrow perspective signals lost opportunities in the areas of

Medical Office Momentum 

The re election of President Barack Obama and last year’s favorable Supreme Court ruling on the Patient Protection and Affordable Care Act have removed some uncertainty as to whether or not the healthcare law will take effect. While some provisions

Think Big 

The national office leasing market that emerged from the recession was a vastly different animal than the one that entered it in 2008. The years of downturn transformed how corporate tenants around the country define their use of space, and

Medical Office Trends 

The U.S. demand for medical services is expected to skyrocket over the next decade due to demographic trends and new healthcare legislation. As baby boomers retire, the over–65 age bracket will grow by 36 percent and that age cohort traditionally

At the Office Crossroads 

The office investment market is at a crossroads. The spread in capitalization rates between office properties in core markets vs. office properties in secondary and tertiary markets reached a 10 year high in first quarter 2012, according to Real Capital

Resizing or Right-Sizing? 

Corporations around the globe have been holding on to office space in anticipation of a market rebound, but that’s about to change. “A growing number of corporate property owners say they have up to 50 percent excess leased office space,”

The Suburban Scene 

Despite the trend toward downtown revitalization, suburban locations still find favor with many office tenants. Financial, telecommunications, and technology companies in particular view the suburbs as an attractive location for corporate headquarters, call centers, and back offices. Convenience continues to

What Office Tenants Want 

Despite the fluctuating economy and current design trends, two factors remain constant when tenants select office space cost and location. But in today's market, other factors also influence the decision making process. From turnkey buildouts to shorter lease terms to

CBDs Sizzle 

Thriving. Hot. Exciting. Dynamic. Charged. These are the kinds of words that real estate brokers and analysts are using to describe today’s central business district office markets. While brokers overwhelmingly term their own market as very strong, those with an

Suburban Office High 

Where will you find the highest office rents in the nation? Manhattan? Washington, D.C.? Try Sand Hill Road in Palo Alto and Menlo Park, California, where tenants are paying $70 per square foot (psf) for class A space, according to

Running on Empty 

The road is clear. Lenders have given the green light. Office investors sit in the driver’s seat, poised to push the transaction pedal to the metal. The road is clear. Lenders have given the green light. Office investors sit in

Opening Moves 

Offers of rent discounts, free rent, and other incentives ignited office leasing during the first half of 2010. While that may seem like great news for landlords and brokerage firms, the surge in activity is doing little to make a

Deal Diagnosis 

During the past decade, hospitals and healthcare providers have been on a building spree. Not only is the quantity of developments growing, but project size is on the rise. Hospitals and healthcare providers often build new because aging facilities cannot

A Healthy Disposition 

Medical office buildings enjoyed healthy transaction activity in 2010. Sales volume increased by 80 percent over 2009, according to Real Capital Analytics. MOB acquisitions totaled more than $3.1 billion in volume by year end. MOBs have attracted a great deal

MOB Outbreak 

A new trend in the growing healthcare sector offers physicians the opportunity for equity participation in new medical office building developments. Hospitals planning to build new MOBs on their campuses increasingly are turning to third

Office Exodus? 

At corporations across the country chairs are empty. Maybe their occupants are working in the field or out to lunch, or maybe they are never coming back. Approximately 20.7 million U.S. workers no longer report to bricks and mortar offices

Office Romance 

At the national level, private equity investors are entering the office market at an unprecedented pace, escalating competition and pricing for premium assets in major and secondary cities. Other factors, such as interest rates, corporate relocations, and population shifts, are

Office Towers 

As the U.S. added 2 million jobs to the economy during the last 12 months, office vacancy rates in major markets fell to their lowest point since 2001. Although job growth moderated during 2006's first half, the office market is

Office Market Madness 

Tulsa, Okla., does not rank high on most commercial real estate experts’ lists of hot office investment markets. In fact, the 44th largest U.S. city has wrestled with high vacancy rates for years and historically has been dominated by private

Think Big, Buy Small 

While rent discounts and concessions may entice some tenants, many small business owners are forgoing the attractive lease terms available in depressed office markets in lieu of one very powerful incentive real estate ownership. "We're seeing more demand than ever

Office Optimism 

There are many reasons why today's national office market is inching along at a snail's pace compared to the lightning speed it was moving at less than 12 months ago. The credit squeeze, economic turbulence, and capital market volatility are