Posts Tagged ‘Business Start Ups’

USA Office Market Forecast 2017

February 2nd, 2017

USA Office Buildings offices.netOverview of USA Office Market

During 2016, the USA office market was marked by a climate of cautious optimism and moderate growth across the board. This was mostly evident in office rental rates, which increased by a modest 0.1 per cent or even declined in cities like Chicago, New York, Washington and San Francisco. This was coupled with a slow-down in leasing activity, as net absorption rates only reached 6.5 million square feet during the last quarter of 2016. The bulk of lease transactions consisted of small and medium-sized office properties, and the total number of leases exceeding 500,000 dropped by 43 per cent.

Key market indicators (such as take-up, vacancy, and availability rates) were linked to the performance of those industry sectors that make up for the bulk of office occupiers in the USA. 2016 saw a tightening of the labor market in the tech sector, driving vacancy rates down to break the 10 per cent barrier for the first time. This offset the relative stagnation in activity coming from occupiers involved in financial services, legal, and government.

Important figures that reveal the market’s performance during 2016 included:

– A total inventory in excess of 137 million square feet

– Total vacancy rates of 16.9 per cent

– Annual net absorption above 1.1 million square feet

– Nationwide average asking rates $23.91

– Office space under construction 4.9 million square feet, of which 53.7 per cent is already pre-leased

USA Office Market Forecast 2017

 

USA Office Market by City

Mid-sized markets were among the best performers in the year that has just ended. Portland, Nashville, Salt Lake City, and San Antonio were characterized by occupancy increases that averaged 3 per cent. In San Francisco, market indicators were also positive despite the fact that occupancy growth levels dropped from 2.9 to 1.1 per cent. Other regional office markets that did well included Austin, Silicon Valley, and Seattle. In these markets, occupancy growth averaged 2 per cent. Read the rest of this entry »

New York City CBD

August 11th, 2016

New York City’s Central Business District is the largest of its kind in the United States and is one of the worlds most prosperous and resilient business hubs. Although there are several designated business districts in New York, the city’s primary CBD refers to the area comprised of Midtown and downtown Manhattan.

The area has been an influential economic and financial center since the 19th century, mainly thanks to the presence of the New York Stock Exchange and other important financial institutions. Over the years, the CBD grew in size, population, and in the diversity of its industrial and commercial base. Nowadays, New York’s CBD is home to approximately 1.6 million residents and is visited by up to 4 million people every day, including tourists, commuters, and residents. According to the city’s Chamber of Commerce, the CBD is home to more than 310,000 registered businesses.

The CBD is well connected to the rest of the city via mass transit, as the area is served by 14 subway lines and more than 30 bus lines, which provide 24/7 access to the business heart of New York. The Staten Island ferry terminal is also located within the CBD’s boundaries. Connections with nearby urban centers (such as New Jersey) are readily available via frequent PATH trains. The nearest airport is New York – LaGuardia, which is approximately 10 miles east of Times Square and 12 miles away from Wall Street.

Key industries and employers

According to statistical data published in a recent Demographia report, New York’s CBD employs more than 22 per cent of the city’s workforce (nearly 2 million people). This is by far the largest share of employment of all CBDs in the United States. The CBD also ranks first in terms of the number of Fortune 500 companies, as there are more than 50 such corporations in New York’s CBD. Read the rest of this entry »

Top Ten Largest CBD’s in the USA

July 13th, 2016

USA Business CBD'sAll over the United States, central business districts serve as a magnet for economic growth and employment. Below is an overview of the top 10 largest CBDs in the country.

1. New York City
New York City’s CBD is the largest in the country and covers a large area in Midtown and downtown Manhattan. The city’s CBD contains more than 500 million square feet of commercial real estate and several residential neighborhoods. According to the US Census Bureau, New York’s CBD has a permanent population of approximately 1.6 million people. Key industries include finance, banking, retail, hospitality, tourism, and business services.

2. Chicago
Chicago’s central business district (also known as The Loop) occupies an area of 1.58 square miles. The Loop is a densely populated area and has a total commercial real estate inventory of nearly 160 million square feet, which account for 45 percent of the city’s total supply. More than 300,000 people work in the CBD, mainly in sectors like professional, scientific and technical services, finance and insurance, admin support, healthcare, and food services.

3. Los Angeles
Downtown Los Angeles is made up of 15 districts, although the business core lies between the Financial District, Historic Core, and Old Bank District. In recent years, the Bunker Hill area has also emerged as an important business destination within the city’s CBD. There are more than 32 million square feet of commercial real estate in downtown Los Angeles, and population density remains relatively low at under 5,000 / square mile. Important industries include technology, media, creative, transportation, leisure and entertainment, and the arts.

4. Boston
Boston’s CBD is one of the most important business hubs in the East Coast. Business density is particularly high in the Financial District, which is home to large banking, finance, and insurance corporations like Bank of America,PricewaterhouseCoopers, and Fidelity Investments. Boston’s CBD is characterized by its large percentage of Class A commercial stock (nearly 70 per cent of the total according to 2015 data). Tech-related firms and businesses involved in healthcare, life sciences, and advanced manufacturing are key drivers of the Boston economy. Read the rest of this entry »

Best Cities to start a Business in the Midwest USA

October 6th, 2015

Centered on the north-central region of the country, the Midwest United States includes 12 states including Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota and Wisconsin. Although major urban centers such as Chicago are known around the world as key economic drivers, the Midwest is also home to several smaller cities that provide promising conditions for new businesses. WalletHub’s 2015 ranking of the best cities to start of a business in the United States included six Midwestern cities in the top 20. The ranking used a number of metrics, from the five-year survival rate of businesses to the affordability of office space.

Springfield, Missouri
Springfield, Missouri ranked as the best Midwestern city to start of business in the United States, according to the 2015 study. The city also placed first nationally in terms of access to resources, including financing and affordable office space. Known as the Queen City of the Ozarks and the Birthplace of Route 66, Springfield is home to the Missouri State University and Drury University. The third largest city in Missouri is the economic hub of an area that spans 27 counties in Missouri and neighboring Arkansas and is home to some 1 million people. The economy is based on health care, manufacturing, retail, education and tourism. The city has also been recognized for its high quality of life, and in 2008 it was among the best communities for young people by the America’s Promise Alliance and relocating families by Worldwide ERC.

Sioux Falls, South Dakota
The same ranking found that Sioux Falls was the sixth best city to start a business in the US. With a growing population, the city also ranked second in terms of the best business environment in the United States. It was also named as the next big boom town by The Atlantic in 2013. The largest city in South Dakota, Sioux Falls is a diverse economic center focused on financial services, health care and retail. Sitting on the crossroads of interstates 90 and 29, the city is within a day’s drive from many major cities in the Midwest. The lack of a state corporate tax has helped attract a number of financial companies to Sioux Falls, including Wells Fargo and Citigroup. Read the rest of this entry »

Spotlight on Business in Manhattan

March 31st, 2015

Overview of Business in Manhattan

For decades, Manhattan has been a global business hub of undisputed prestige. This New York borough is home to some of the world’s most successful businesses and to the largest stock exchange in the world. Manhattan has repeatedly topped the global lists of most powerful cities, staying ahead of other leading business hubs like London, Dubai, Hong Kong, or Shanghai. Due to its excellent infrastructure, world-class business environment, and valuable human capital, Manhattan is the world’s most desirable business location . The borough’s thriving business scene is a catalyst for economic growth, and this is reflected in the local employment levels. According to the NYCEDC, more than 310,000 jobs are based in this borough, tens of thousands of which have been created in the private sector since 2005.

Major Industries

The banking and financial sector is the key economic driver for the local economy. More than 300,000 people are employed in this industry, which according to the Federal Reserve generates more than 35 per cent of the city’s income. The service sector is another key industry in Manhattan, as it employs over 1 million people in areas like tourism (over 240,000 jobs), professional and business services (287,000 jobs), or healthcare and social assistance (208,000 jobs).

The number of technology, advertising, media, and information companies (TAMIs) has skyrocketed since 2009. Back then, TAMIs barely occupied 100,000 square feet of space in Manhattan, but at the end of 2014 that figure had increased to more than 1.6 million. A report published by the Downtown alliance estimates that this sector is comprised of over 800 firms that generate a combined annual output of $125 billion and that employ nearly 29,000 people. Likewise, Manhattan has recently been attracting a steady number of creative firms. According to an article published at the Wall Street Journal, the number of employees working in creative ventures in this part of Manhattan has increased by 71 per cent over the past five years. Read the rest of this entry »

Top Ten Cities for Business Start Ups in the US

March 12th, 2012

Rockville, MD
Rockville is a small suburb of Maryland that has a population of a little over 50,000 people. While it may not be the biggest place in the world, its location is what makes it such a hotbed of startup activity. Its proximity to a number of major national laboratories makes Rockville specifically a hub of the biotech industry, and it means that there are a lot of funding sources available for the right type of startup.

San Francisco, CA

San Francisco, California, is known mostly for its art and culture, but it also has a bustling economic scene in these tough times. The real benefit of operating out of San Francisco is the convergence of academia and business. There are a lot of established universities out here, as well as a lot of giants in the technology industry.

Franklin, TN
Franklin, Tennessee, is a small town about the size of Rockville, but is more of an entity of its own. There is a major biotechnology push in Franklin, with the university putting up state of the art facilities to push development in that sector. More than half of the people living in Franklin have at least a four year college education, and the technology industry here is on the rise.

Bellevue, WA
Close to the home of such giants as Microsoft, Bellevue, situated in Washington, is one of the hottest spots of activity in the technology sector in the country. Bellevue residents hold more patents than any other city in the country, and there are a lot of tax incentives for small startups, especially in the technology sector. Being so close to many of the larger, older technology firms gives startups the ability to utilize a wealth of industry information that is more readily found in this area than in other areas.

Cambridge, MA
Cambridge will be recognizable to most people as the home to both MIT and Harvard, two of the most prestigious universities in the world. As a town of roughly 100,000 people, Cambridge maintains a very low-key persona that carries an air of growth. The town has a reputation to uphold as one of the hotbeds of advancement in the country, and the incentives for small business development here are ample.

Irvine, CA

Irvine, California, has a number of things going for it that make it very attractive for startups. It is right outside of Los Angeles, so it is mostly populated by technology and entertainment-based startups, but there are many different businesses here. One of the most attractive aspects of the city is that it gives entertainment and technology startups access to Los Angeles without actually having to be located in the city itself.

Bend, OR
Bend, Oregon, has experienced a growth rate of 50 percent over the past decade, and it doesn’t show any signs of slowing down. The town itself used to be centered around logging, but has since become very involved with the technology, aviation, and biotech industries.

Santa Monica, CA
Santa Monica, California, has become very popular for film startups over the past decade. The proximity to Los Angeles is the big draw here, with business owners getting all the benefits of Los Angeles without the stifling taxes that come with living in the city. Digital media production companies find that they are able to compete with larger film companies while operating out of Santa Monica.

Boca Raton, FL

Looking to shirk its reputation as nothing but a paved old folks home, Boca Raton, Florida, is very welcoming of startups, especially in the technology industry. There are a lot of smaller companies that work here that have been started by employees of IBM, which has operated out of Boca Raton since the 1970s.

Boulder, CO
Boulder, Colorado, has become something of an icon of the technology startup community. As the university has advanced its technology base over the past ten years, more and more businesses have been developing here from the resulting boom in startup grant funding. There are a number of national research labs maintained in Boulder, and these labs bring in a swathe of talent from around the globe– making Boulder a hotbed of activity in the technology industry.