Commercial Real Estate Market Update Q2 2017
The industrial market as a whole absorbed a little over 2.600,000 SF of space in 2016. Vacancy rates continue their downward trajectory and have fallen to approximately 7% in the metro area. However, a quick look at development trends suggests a peak may have been reached. Developers have clearly shifted from ‘spec’ development to ‘build-to-suit’ projects as demand has leveled off. What does this mean for Landlords & Sellers? Landlords are having increased activity, see increasing rents/prices, and are limiting concessions for new tenants.
The outlook for office market is following the same path. Office space in the North Loop & West End areas remain hot and rents are increasing across the metro. Employers are continuing to re-evaluate their space to attract top talent. The trend is towards collaborative workspaces that include fewer private offices, more open space and buildings with worker-friendly amenities.