In the Tri-Valley, Q3 closed with a slow down in leasing activity and resulted in a negative net absorption in both the office and industrial markets. As a result, both segments saw an increase in vacancy and a decline in asking rents. See the whole post to read about the rest of the statistics and our outlook for both market segments.
We just released our new U.S. Economic and CRE Outlook. Did you know that we are now in the second longest recovery period and by next July (2019), we will be in the longest recovery every recorded? Nearly nine years into the current cycle, the U.S. economy is strong and all the signs say it’s getting stronger. The leading indicators that correlate well with the property markets are in excellent shape.
With the strong industrial market, the challenge is to figure out how to get more storage in our already densely built out markets.
The way to get more out of our industrial zones is to go up in our warehousing. Read the post to find out more about this interesting trend in industrial real estate.
We have seen a steady decline in cap rates over the last several years but that may be about to change. I recently read an article at Real Capital Analytics about cap rates and how they relate to the 10yr US Treasury. Click on this post to see what was said.
In the face of the tightest labor market in approximately 18 years, corporate occupiers are highly focused on talent acquisition and retention. Results of a recent research survey entitled What Occupiers Want, revealed that finding and keeping top talent is the number one challenge for global organizations. Corporate real estate is increasingly becoming a significant tool to attract high-quality talent. This alignment of real estate and business strategy is driving several critical trends, influenced by technology, that impact how space is designed and utilized. Click on this post to read about the five trends that we feel are shaping the current office market.
We recently released an article on the tax reform and how it affects those in high SALT (state and local tax) states like California and New York. I’ve posted a summary of that article here and a link to the entire report. Hope you enjoy the article. Feel free to comment if you think there is something that we missed.
Rents aren’t the only thing on the rise, the increase of tenant improvement costs are also on the rise and they do effect new lease deals. I share a recent report that I received from a Bay Area construction company to pass along where full build out improvement costs are coming in at in three Bay Area regions. In addition to the costs of tenant improvements, I also point out how recent code changes are one of the areas contributing to the increases in tenant improvement costs. Click on this post to see the rest of the article and the Bay Area tenant improvement cost report.