Posts Tagged ‘Commercial Real Estate’
July 8th, 2024
![Three colleagues gather in an office to confer on the changing prices of commercial property in the USA. A businessman is seated on a chair on his laptop and a businesswoman is sitting on the desk, while their female colleague stands in front of them holding a clipboard and pointing at a graph on a whiteboard stand. Image at Offices.net.](https://offices.net/news/wp-content/uploads/2024/07/united-states-commercial-property-prices-per-square-foot-2024-colleagues-confer-offices.net_.jpg)
The United States is home to one of the world’s largest commercial real estate markets, accounting for nearly 40% of all real estate globally. The latest data from 2024 show that this market generates revenues in excess of $1 trillion, and 16 of the world’s 30 most competitive commercial property markets are located in the United States.
Early 2024 data show that the average asking price per square foot for US offices stands at $37. Retail averages out to $23 per square foot, and industrial space comes in at just under $8 per square foot. However, there are significant variations in average prices based on location and real estate class.
Here’s a summary of the average commercial property rates in key USA cities:
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Tags: Business Advice, commercial property, Commercial Real Estate, Office Market Trends, Office Rental, Office Space Trends and Forecasts, Office Talk, prices, statistics
Posted in Office Space Forecasts and Trends, Real Estate, Trends and Statistics | No Comments »
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May 24th, 2024
![A daytime view of downtown Boston’s skyline from the waterfront. Image at Offices.net.](https://offices.net/news/wp-content/uploads/2024/05/the-cost-of-renting-office-space-in-boston-daytime-waterfront-skyline-offices.net_.jpg)
Thanks to its academic status and thriving innovation scene, Boston is considered one of the top business hubs on the East Coast. In particular, the city and the surrounding areas have become the destination of choice for many startups, not only due to the availability of talent and funding, but also given the quality and diversity of office accommodation options.
In this article, we offer detailed insights into the cost of renting office space in Boston, district by district.
Office market trends in Boston
Over the past decade, the Boston office space market has seen fluctuating performance, witnessing shifts in demand and supply. Initially, the growth of the tech and life sciences sectors contributed to the expansion of the office market, with the development of new and modern spaces that could accommodate the requirements of these occupiers. Low vacancy levels translated into increasing asking rates, in particular in areas like East Cambridge and Sommerville, while other tenants were pushed out of the market as they couldn’t always compete with the budget of occupiers like MIT, Novartis, and Google.
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Tags: Boston, Business Advice, commercial property, Commercial Real Estate, Office Market Trends, Office Rental, Office Space Trends and Forecasts
Posted in Boston, Business Districts, CBD's, CRE, Market Overviews, Office Planning, Office Space Forecasts and Trends | No Comments »
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May 22nd, 2024
![A daytime view over the water of Potomac River's tidal basin towards the Washington Monument obelisk in the distance. Pink cherry blossoms in full bloom line the basin. Image at Offices.net.](https://offices.net/news/wp-content/uploads/2024/05/analyzing-the-cost-of-office-space-in-washington-dc-washington-monument-cherry-blossoms-offices.net_.jpg)
Washington DC is one of the largest US office space markets by square footage, which means local businesses are never short of options when it comes to finding a suitable office unit in the nation’s capital. For anyone interested in setting up an office or relocating to the city, we have created an overview of the costs involved in doing so.
The business environment in Washington DC
Washington DC has a thriving business ecosystem boasting excellent tech infrastructure, unparalleled access by road, sea, railway, and air, with three major airports, and office space options that can accommodate anything from large headquarters to micro-enterprises.
In addition, local companies enjoy access to a highly educated workforce, the presence of influential industry players in various industries, and several incentives to lessen the financial impact of running a business in the city.
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Tags: Business Advice, Commercial Real Estate, dc, Office Market Trends, Office Rental, Office-tips, statistics
Posted in Business Advice, Business Districts, CRE, DC, Office Planning, Office Talk | No Comments »
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May 17th, 2024
![A close-up view of an hourglass with red sand flowing down. The hourglass is resting on a newspaper. Image at Offices.net.](https://offices.net/news/wp-content/uploads/2024/05/commercial-real-estate-depreciation-hourglass-on-newspaper-offices.net_.jpg)
In the intricate world of commercial real estate, few topics can be as consequential—yet often misunderstood—as depreciation. At its core, depreciation represents the gradual wear and tear of a property, reflecting its diminishing value over time. While this concept might seem straightforward, its implications ripple throughout various aspects of the industry, impacting not just the physical bricks and mortar, but the financial sheets and investment calculations of those involved.
For property owners, understanding depreciation is paramount. It influences their annual tax liability and shapes the long-term financial strategy behind their real estate holdings. Investors, on the other hand, often scrutinize depreciation schedules and methods to determine the potential returns of their ventures. As for lessees, while they might not directly deal with depreciation calculations, the underlying factors that cause depreciation can indirectly affect lease terms and rental rates.
This article delves into the nuances of commercial real estate depreciation, dissecting its mechanics and significance, especially within the context of the US market. Our goal is to shed light on this pivotal subject, equipping our readers with the knowledge to make informed decisions, whether they’re exploring new office spaces, considering an investment, or simply seeking to expand their understanding of commercial real estate dynamics in the USA.
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Tags: Business Advice, commercial property, Commercial Real Estate, Office Rental, Office Space, Office-tips
Posted in CRE, Entrepreneurs, Finance & Tax, Office Planning, Office Rental, Real Estate | No Comments »
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May 10th, 2024
![An elevated view across New York City during the daytime, the Empire State Building rises out of the center of the sea of buildings with a cloud-strewn blue sky above. Image at Offices.net.](https://offices.net/news/wp-content/uploads/2024/05/nyc-office-space-rental-cost-analysis-daytime-skyline-offices.net_.jpg)
As one of the world’s leading business locations, New York City attracts office-based businesses with a wide range of requirements and budgets. In this article, we offer an in-depth analysis of the costs associated with renting office space in the Big Apple, so you can make the best decision when establishing your business footprint in the city.
Understanding the factors that influence office space costs
The cost of leasing office space in New York City‘s office market is influenced by a number of factors, including:
– Location: Although Manhattan still tops the list in terms of prestige, other areas fare better for ease of commute, as is the case of Brooklyn, and their popularity is reflected in rising prices when compared to the rest of the New York office space stock.
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Tags: commercial property, Commercial Real Estate, Manhattan, new york, Office Rental, Office Space
Posted in CBD's, CRE, Manhattan, New York, Office Planning, Office Rental, Office Talk | No Comments »
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January 31st, 2023
![colorful office building facade examples of colors in the workplace image at offices.net](https://offices.net/news/wp-content/uploads/2023/01/colors-in-the-workplace-colorful-office-buildings-offices.net_.jpg)
The use of color in an office space has a significant impact on the atmosphere of the workplace and on those that occupy it. The right combination of colors can enhance the overall design, improve the functionality of the space, and create a more positive and productive work environment.
According to the Institute for Color Research, within 90 seconds of first viewing, people make a subconscious judgement about a space or a product, and between 62% and 90% of that evaluation is based only on color. Additionally, in a ground-breaking study, the University of Texas discovered that when presented with different colors, varying brain responses can affect employee productivity and attitude.
In this article, we will discuss the power of color in offices by delving into the evidence surrounding color psychology, and the impact lighting and materials have on color, and how this should combine to be applied to office design. So, after reading, office interior designers, occupiers and landlords should gain some insight into how to use color to enhance the overall design of spaces, and improve the functionality and productivity of the office environment.
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Tags: 2023, Business, Business Advice, commercial property, Commercial Real Estate, Office Health, Office Organization, Office Space, Office-tips
Posted in Office Health, Office Renovation | No Comments »
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August 8th, 2022
![night skyline of mid 2022 atlanta commercial real estate market downtown image at offices.net](https://offices.net/news/wp-content/uploads/2022/08/atlskyline-Offices.net_.jpg)
Office Space
As of Q2 2022, we’re continuing to see signs of Atlanta’s increased post-pandemic recovery when compared to its peers. Office occupancy rates have shot up dramatically since Q2 2021, though leasing overall has still not reached pre-pandemic levels. Major players — including Google, Microsoft, Visa, and Airbnb — have been in the process of opening up thousands of high salary jobs in offices throughout Atlanta, heavily contributing to the increased positive sentiment that has permeated throughout the office sector in 2022.
Rents have settled after the turbulent events of the early 2020s. Vacancy rates in the metro are still sitting around 18%, making it harder for providers to hike rates. Overall vacancy rates have dropped from 18.8% in Q1 2022 to 18.4% in Q2, providing more evidence of recovery. Despite this, vacant square footage by volume has increased in the metro area, with just over 43 million sq/ft vacant in the middle of 2022 representing a rise compared to the same time in 2021, which saw 42 million sq/ft of vacant office space.
Vacancy rates in Midtown are down to 19% in Q2 2022, compared to 22% in Q2 2021. South Atlanta still shows the lowest vacancy rates across the metro area at 11.7%, though this is up from the Q2 2021 figure of 10%. Despite this increase, recovery is still trending positively when compared to other areas in Atlanta — though reaching the healthy metrics of 2019 is still a ways off. Read the rest of this entry »
Tags: 2022, Atlanta, Commercial Real Estate, coworking, industrial space, market overviews, Office Space, statistics
Posted in Atlanta, Georgia, Market Overviews, Office Space Forecasts and Trends, Trends and Statistics | No Comments »
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February 24th, 2022
The US office market struggle to get back on its feet for most of 2021, despite the year starting with the expectation that this arm of the commercial real estate market would be on its way to recovery by Q3 to Q4. Ultimately, the emergence of the Delta and Omicron variants of COVID-19 resulted in forecasts being revised, and the recovery horizon was pushed to 2022.
We’ve collected a brief overview of the trends, figures, and projections for the 2022 US office space market below, check back frequently in the year ahead for more insight into industry trends and recovery projections.
Economic Indicators Tipped to Improve
There are many factors influencing office market performance, but macro-economic indicators are some of the most critical. As we settle into 2022, a decline in unemployment is expected to be one of the most important factors underscoring the recovery of the office market. Recent data from the U.S. Bureau of Labor Statistics outlined a small uptick in unemployment in January 2022, moving from 3.9% at the end of 2021 to 4.0% to end the first month of the new year. Read the rest of this entry »
Tags: Commercial Real Estate, Office Market Trends, Office Rental, Office Space, Office Space Trends and Forecasts, Office Talk, USA
Posted in Office Space Forecasts and Trends, Office Talk, Trends and Statistics, Uncategorized | No Comments »
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February 11th, 2022
![man delivers national office report at offices.net](https://offices.net/news/wp-content/uploads/2022/02/pexels-andrea-piacquadio-3760093-e1644557649855.jpg)
Notable Office Market Insights
- Ongoing recovery is the main theme, continuing the trend seen in most office markets throughout 2021.
- Positive absorption indicators.
- Slight increase in rental rates.
- Marked differences in occupancy levels, vacancy rates and general performance from city to city.
- Remote working practices are still commonplace in key markets, such as San Francisco.
- 142 million square feet of office space currently under construction.
Lease Rates & Asking Rents
Recent data from Commercial Edge outlines a nationwide rental listing rate average of $38sq/ft in January 2022. These figures may be seen as somewhat inflated due to the number of high quality spaces currently listed due to being vacant, with Class A workspaces being listed at much higher prices.
According to Avison Young, Q4 average rental prices per square foot in gateway markets were as follows:
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Tags: Boston, chicago, Commercial Real Estate, Dallas, dc, Florida, Houston, Los Angeles, Manhattan, new york, office market report, Office Market Trends, Office Space, Office Talk, San Francisco, Texas, USA
Posted in National Market Reports, Office Space Forecasts and Trends, Office Talk, Real Estate, Trends and Statistics | No Comments »
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July 21st, 2021
Office renovations can help create a more productive workplace and support a business’s branding strategy. However, these projects can have a significant impact on capital expenditure. Calculated per rentable square foot (RSF), fit-out and renovation costs went ranged from $90 to $220/RSF in 2019-20, depending on location, office size, cost of labor, and industry sector – since some businesses (such as tech companies) require fit-outs to higher and more costly specifications.
What follows is a breakdown of the costs involved in renovating an office in the United States. *
Construction Costs
These costs involve the removal, addition or alteration of physical elements in a building, office floor or office unit. Construction costs include materials and labor, as well as fees charged by contractors, and they serve as the biggest expense in fit-out projects – accounting for 50% to 70% of the total cost.
Average costs are $90/RSF. Depending on location, they can be as high as $139/RSF or as low as $54/RSF.
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Tags: Business Advice, commercial property, Commercial Real Estate, office fit-outs, Office Space, Office Talk, Office-tips, renovation
Posted in Business Advice, Office Renovation, Office Talk | No Comments »
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