Posts Tagged ‘Commercial Real Estate’
February 28th, 2023
The United States is home to one of the world’s largest commercial real estate markets, with an estimated revenue worth of approximately $1.2tr. In terms of size, industrial space is the largest sub-market with 21.7bn square feet, followed by retail with 14bn, and offices, which account for 11.8bn.
In Q1 2023, the average price per square foot for US offices was just over $38. Retail averaged out to $18.09 / square foot, and industrial space came in at just under $8 / square foot. However, there are significant variations in average prices based on location and real estate class. Here is a summary of average commercial rates in key USA cities:
- New York: Average gross rates for metro New York offices are $77 / sq ft / year. Industrial space averages $19 / sq ft / year.
- Los Angeles: $44 / sq ft / year for offices in the metropolitan area and $11 / sq ft / year for industrial premises.
- Miami: In the same range as Los Angeles, at $46 / sq ft / year for offices and slightly lower for industrial space ($8 / sq ft / year).
- Boston: $38/ sq ft / year for metro offices, rising to $80 in Cambridge. Industrial properties average $10 / sq ft / year.
- Philadelphia: $32 / sq ft / year for city center offices, $27 for suburban space, and $6 / sq ft / year for industrial properties.
- Atlanta: Slightly under $30 / sq ft / year for offices with a rate of $35 in Downtown Atlanta. Industrial space is charged at an average of $5 / sq ft / year.
- Chicago: Approximately $33 / sq ft / year for office space, rising to averages above $40 in The Loop. Industrial premises average $6 / sq ft / year.
- Dallas and other urban centers in Texas: between $25 and $30 / sq ft / year, whereas industrial rates are below $5.
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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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January 31st, 2023
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
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
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
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June 23rd, 2021
The US office market has been dramatically transformed by the changes to work practices and mobility restrictions implemented throughout the course of 2020 and early 2021. Whilst it was predicted that the market would slowly rebound starting in recent months, the demands of office occupiers will have changed substantially since the start of the COVID-19 pandemic. Below is a brief overview of the main things to look for in an office space during the second half of 2021.
Office Layout
Flexible spaces
Flexibility remains a key consideration when choosing an office, not only in terms of lease terms, but also office layouts. Many office-based companies are still unsure about their ability to retain staff in the face of reduced revenue, combating this uncertainty by implementing rotating shifts or flexible work hours, two factors which have ultimately led to businesses struggling to identify the total headcount in the office at any given time.
This uncertainty will lead to an increase in demand for modular spaces that can be adjusted depending on the number of people present in the workplace. These kinds of dynamic layouts have been an option for several years, often going hand in hand with trends towards multi-functional office spaces. Some of the main elements that typify flexible workspaces include:
- Blurred indoor to outdoor transitions.
- Movable walls and room dividers.
- Lightweight or mobile office furniture.
- Adjustable or movable lighting.
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Tags: commercial property, Commercial Real Estate, Flexible Offices, Office Rental, office space options, Office Space Trends and Forecasts, Office Talk
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March 22nd, 2021
There are certain terms you need to be familiar with when renting commercial property in the United States. Here is a list of the most important key words, in alphabetical order.
All-Inclusive
All-inclusive space is available at a fixed fee and typically gives tenants access to equipped workstations, admin/reception support, and meeting rooms. Utilities, janitorial services, and security are usually included.
Class A/B/C
Office space is classified into three classes depending on quality standards and the amenities on offer.
Class A
Class A space is considered best-in-class and is usually located in new buildings that feature the highest standards of construction, design, and amenities. These offices are typically found in prime business locations.
Class B
Class B space offers a functional standard of accommodation to office-based businesses in need of well-maintained space at a reasonable price.
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Tags: commercial property, Commercial Real Estate, commercial terms, glossary, key words, Office Space, Office Talk
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January 27th, 2021
Commercial real estate was one of the hardest hit sectors following the coronavirus outbreak in 2020. The pandemic and the measures taken to curb its spread brought significant changes to office-based workplaces, driving a sharp and sudden increase in remote work practices. The most immediate consequence of this shift was a softening in rental activity due to the decreased need for physical office space in the short-term. As a result, 2020 ended with a marked decline in take-up volume and an increase in office vacancy rates across the nation.
The United States office rental market entered the new year in a scenario marked by declining rental rates and compromised fundamentals. As we move further into 2021, these trends are likely to remain in place and some markets may begin to feel the full impact of the economic crisis, whereas others will prove more resilient.
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Tags: commercial property, Commercial Real Estate, Office Market Trends, Office Space Trends and Forecasts
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December 15th, 2020
An updated version of this post can be found by clicking here.
The United States is home to one of the world’s largest commercial real estate markets, with an estimated worth of approximately $950bn. In terms of size, industrial space is the largest sub-market with 21bn square feet, followed by retail with 13bn, and offices, which account for 11bn.
In Q2 2020, the average price per square foot for US offices was just over $35. Retail averaged out to $18.09 / square foot, and industrial space came in at just under $8 / square foot. However, there are significant variations in average prices based on location and real estate class. Here is a summary of average commercial rates in key USA cities:
- New York: Average gross rates for metro New York offices are $81 / sq ft / year. Industrial space averages $19 / sq ft / year.
- Los Angeles: $44 / sq ft / year for offices in the metropolitan area and $11 / sq ft / year for industrial premises.
- Miami: In the same range as Los Angeles for CBD offices and slightly lower for industrial space ($8 / sq ft / year).
- Boston: $39/ sq ft / year for metro offices, rising to $80 in Cambridge. Industrial properties average $10 / sq ft / year.
- Philadelphia: $36 / sq ft / year for city center offices, $27 for suburban space, and $6 / sq ft / year for industrial properties.
- Atlanta: Slightly under $30 / sq ft / year for offices with a rate of $35 in Downtown Atlanta. Industrial space is charged at an average of $5 / sq ft / year.
- Chicago: Approximately $33 / sq ft / year for office space, rising to averages above $40 in The Loop. Industrial premises average $6 / sq ft / year.
- Dallas and other urban centers in Texas: between $25 and $30 / sq ft / year, whereas industrial rates are below $5.
Read the rest of this entry »
Tags: Business Advice, commercial property, Commercial Real Estate, Office Market Trends, Office Rental, Office Space Trends and Forecasts, Office Talk, prices
Posted in Office Space Forecasts and Trends, Real Estate, Trends and Statistics | No Comments »
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