Posts Tagged ‘Office Space’

Mid-2022 Atlanta Commercial Real Estate Market Overview

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 »

US Office Market Trends 2022 – Statistics, Challenges and Outlook

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 »

January 2022 – U.S. National Office Market Report

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:

Read the rest of this entry »

Cost of an Office Fit-Out or Renovation in the USA

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.

Read the rest of this entry »

A Guide to Subleasing in The United States

April 22nd, 2021

A sublease is an agreement between a party who already hold a lease to a property and a separate party looking to rent the property in question, whether that be partly or wholly. For example, a business who leases five floors of office space in a building may look to sublease one of those floors, in the event that they downsize their workforce prior to the end of the initial lease. The party who holds in initial lease is known as the sublessor, whilst the third party looking to occupy a part of the leased space is the sublessee.

How to Sublease

The first step is to check whether you need your landlord’s written permission to sublease a property. This should be outlined in your lease agreement. If subleasing is permitted, the agreement may also specify whether you’re required to give notice to your landlord.

Next, make sure you’re familiar with the legal aspects of subletting in your area, since every state has its own sublet laws that take precedence over lease agreements. You can check state-by-state details here.

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Quick Glossary of Commercial Real Estate Terms

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.

Read the rest of this entry »

United States Office Space Rental Rates 2020

December 22nd, 2020

The United States office market is characterized by its wide range of properties, ranging from affordable shared spaces to expensive trophy offices in some of the world’s most desirable business locations. In mid-2020, average gross rates for offices nationwide stood at $35 per square foot with the priciest offices located in New York and California. Within these states, the sub-markets commanding the highest rates are:

  •   New York: Midtown Manhattan at $87 per square foot, specifically in Chelsea, the Plaza District, and Gramercy Park.
  •   California: The Shoreline/Mountain View area, in which prices reach $130 per square foot, followed by Santa Monica and the SoMa district of San Francisco.

Average asking rates in other prime office markets are as follows:

  •   Seattle: $70 per square foot, higher in Lake Union and the CBD.
  •   Washington DC: $55 per square foot.
  •   Cambridge and Boston: $40 and $80 per square foot, respectively.
  •   Los Angeles: Averaging $45 per square foot.
  •   Chicago: Exceeding $40 per square foot in the West Loop.
  •   Raleigh-Durham: $35 per square foot for CBD properties.

Read the rest of this entry »

Setting Up A Business on Wall Street – New York City

February 2nd, 2020

The Wall Street area is internationally renowned as the world’s financial capital and is an exceptional place to do business. Wall Street itself is a 0.5-mile long artery located between Broadway and South Street, and has a high concentration of highly successful banking and financial headquarters as well as large corporates.

Stock trading activities have been taking place in Wall Street since the 19th century. Today, Wall Street is a hub for firms involved in investment banking, private equity, hedge funds, and asset management. Although finance, banking and insurance are clearly predominant in the area, tourism is also an important industry, since Wall Street and the adjacent alleys are one of the premier tourist destinations within New York City. This area is home to important landmarks, such as the Lincoln Center, the Federal Reserve Building, and the Museum of American Finance.

Some of the most important organizations based in Wall Street are the New York Stock Exchange, Manhattan Chase Bank, Charles Swab, Deutsche Bank, Bank of America, Morgan Stanley, Goldman Sachs, Deloitte, BlackRock, Citibank, but there is also a large number of businesses involved in the food services and leisure, which cater to the area’s tourists and daytime population.

Wall Street is known for attracting some of the brightest talent around, and although the recession caused job losses, employment gains have been evident for some time. There are many corporate recruiters based in Wall Street, including Michael Page, Amity Search Partners, Oxbridge, Foster McCay Group, Smith Hanley, SG Partners, and Glocap Search. However, the area is no longer the largest employment hub in the city, since that position now belongs to the Silicon Alley area located in Midtown / Lower Manhattan. Read the rest of this entry »

Setting Up a Business in Louisville, Colorado

January 14th, 2020

Louisville is a mid-sized urban center in Boulder County with a population of approximately 20,000 people. The city has a central location within Colorado and is within easy reach of other major cities, with Denver only a 30-minute drive away and Boulder just 10 minutes to the west.

Key Industries and Employers in Louisville, Colorado

Key industries in Louisville include education, real estate, healthcare services, retail, trade, transportation, finance, and leisure. The city’s industry base is reflected in the list of main employers, which are Avista Adventist Hospital (with nearly 700 employees), telecommunications firm Zayo Group, the Sierra Nevada Space Corporation, the City of Louisville, Fresca Foods, Balfour Senior Living, and technology solutions company Medtronic.

The labor market in Louisville generally evidences low unemployment levels, which at an average of around 3.5 percent are well below the national average. The number of college graduates is above the US average, standing at nearly 70 percent (compared to 28 percent US-wide), and 35 percent of Louisville residents have a graduate degree. Self-employment levels are 18 percent higher than those in the Denver – Aurora metropolitan area. Read the rest of this entry »

Setting Up A Business In Venice, Florida

October 1st, 2019

The city of Venice is located on Florida’s west coast, approximately 20 miles south of Sarasota and 60 miles away from Fort Myers. Administratively, Venice is part of Sarasota County and has a permanent population of over 22,000 people, although this figure increases during the winter months, when many snowbirds move to the city temporarily.

Key Industries and Employers in Venice, Florida

In its origins, the city’s economy relied on agriculture, fishing, and trade, but currently Venice has a diverse economy that has so far been able to weather the global economic downturn. The largest industries are healthcare and educational services, followed by retail, trade, accommodation and food services, finance, insurance, and manufacturing. Tourism and recreation are also essential to Venice’s economy due to the city’s seaside location and proximity to several natural reserves.

Key employers in Venice include manufacturing firms PGT Industries, which was named one of Florida’s best employers by Forbes (with over 2,800 employees) and Tervis Tumbler, Venice Regional Bayfront Health, Bon Secours Venice Healthcare, and Publix Supermarkets.

Venice has seen a marked increase in the job market over this last year (2019) of 2.6%, with only a slightly lower unemployment rate (3.3%) than in the rest of the US (3.9%). Predictions show future job growth over the next decade to be just over 42%. Venice resident’s average income comes in at just under $40,000 a year, which is higher than the average income across the US and currently stands at just under $30,000 annually. Read the rest of this entry »