Downtown Detroit office fundamentals are improving, with increasing rents, decreasing vacancy rates, and more refinancing activity for commercial properties. Over 300,000 square feet of new office space was delivered in 2015, marking an increase in construction beyond just rehabbing existing buildings. Urban office submarkets continue to outperform suburban areas, with rents in the city up 5.1% compared to a 3.8% increase in the suburbs. Vacancy rates have also decreased more substantially in the urban core over the past year. Recent large commercial mortgage loans on downtown Detroit buildings indicate growing creditworthiness and investment in the central business district.
A Tale of Two Cities and Their Public Works SupervisorsJohn Citibois
People always say it isn't fair to compare things unless they are similar or "apples to apples". Comparing the two cities of Cortland and Plattsburgh, NY is as "apples to apples" as you can get and the citizens of the City of Plattsburgh still can't get a break.
The document discusses mortgages in Washington DC and the factors that contributed to the mortgage and foreclosure crisis. It notes that due to high home prices in the DC area, most homeowners put down less than 20% for a down payment on new property purchases. Homeowners often put down just 5%, 10%, or even 0% down, obtaining what are known as "no money down home loans" or "100% financing home purchase loans", through obtaining two separate loans - one for 80% of the home's value and another for the remaining 20%. More information about mortgages in Washington DC can be found on the main website.
Foreclosure Hits Lowest Level Since 2007Sam Barouki
Sam Barouki is a business development professional and former branch manager at Bank of America Countrywide Home Loans. Responsible for overseeing loans and lending from 2004 to 2009, Sam Barouki has closely followed the housing market crash and foreclosure crisis since 2007.
US landlords will prosper as fewer opt to buy a home - FTWes Graff
Millennials and immigrants are driving increased demand for rental properties in the US as fewer people opt to buy homes. This is benefiting institutional investors who are increasing their allocation to residential real estate due to its attractive long-term income generation. Pension funds see multifamily properties as a stable investment that matches their long-term liabilities. While single-family homes present challenges to manage at scale, rental apartment buildings remain very appealing for large investors.
- The Twin Cities residential real estate market saw home sales increase 16% in 2009 while home prices rose 9.8% since 2000, though prices remain down 28.4% from their 2006 peak.
- Mortgage rates are at historic lows of 5% but qualifying for loans has become more difficult, and 43% of 2009 sales were lender-mediated compared to a historical average of 2%.
- The real estate industry has consolidated and downsized, with the number of agents dropping from 25,000 to 15,000, while new construction focuses on smaller, cheaper homes built to order rather than speculation.
This document discusses changes in rental vacancy rates in gentrified areas of Washington D.C. from 2000 to 2010. It finds that the rental vacancy rate in D.C. decreased over this period, while rates in surrounding Northeastern areas increased. Specifically, most gentrified neighborhoods in D.C. saw reductions in their rental vacancy rates, indicating that gentrification may lower vacancies. However, some gentrifying neighborhoods like Edgewood had increasing vacancy rates since they were less developed than other gentrified areas.
A Tale of Two Cities and Their Public Works SupervisorsJohn Citibois
People always say it isn't fair to compare things unless they are similar or "apples to apples". Comparing the two cities of Cortland and Plattsburgh, NY is as "apples to apples" as you can get and the citizens of the City of Plattsburgh still can't get a break.
The document discusses mortgages in Washington DC and the factors that contributed to the mortgage and foreclosure crisis. It notes that due to high home prices in the DC area, most homeowners put down less than 20% for a down payment on new property purchases. Homeowners often put down just 5%, 10%, or even 0% down, obtaining what are known as "no money down home loans" or "100% financing home purchase loans", through obtaining two separate loans - one for 80% of the home's value and another for the remaining 20%. More information about mortgages in Washington DC can be found on the main website.
Foreclosure Hits Lowest Level Since 2007Sam Barouki
Sam Barouki is a business development professional and former branch manager at Bank of America Countrywide Home Loans. Responsible for overseeing loans and lending from 2004 to 2009, Sam Barouki has closely followed the housing market crash and foreclosure crisis since 2007.
US landlords will prosper as fewer opt to buy a home - FTWes Graff
Millennials and immigrants are driving increased demand for rental properties in the US as fewer people opt to buy homes. This is benefiting institutional investors who are increasing their allocation to residential real estate due to its attractive long-term income generation. Pension funds see multifamily properties as a stable investment that matches their long-term liabilities. While single-family homes present challenges to manage at scale, rental apartment buildings remain very appealing for large investors.
- The Twin Cities residential real estate market saw home sales increase 16% in 2009 while home prices rose 9.8% since 2000, though prices remain down 28.4% from their 2006 peak.
- Mortgage rates are at historic lows of 5% but qualifying for loans has become more difficult, and 43% of 2009 sales were lender-mediated compared to a historical average of 2%.
- The real estate industry has consolidated and downsized, with the number of agents dropping from 25,000 to 15,000, while new construction focuses on smaller, cheaper homes built to order rather than speculation.
This document discusses changes in rental vacancy rates in gentrified areas of Washington D.C. from 2000 to 2010. It finds that the rental vacancy rate in D.C. decreased over this period, while rates in surrounding Northeastern areas increased. Specifically, most gentrified neighborhoods in D.C. saw reductions in their rental vacancy rates, indicating that gentrification may lower vacancies. However, some gentrifying neighborhoods like Edgewood had increasing vacancy rates since they were less developed than other gentrified areas.
Northern New Jersey’s Paterson Real Estate Market RisesJamie Simon
Jamie Simon-Wainick is a real estate professional committed to assisting New Jersey clients in the property acquisition and sale process. Knowledgeable about the community she serves, Jamie Simon-Wainick stays informed on real estate trends across northern New Jersey.
One community that has witnessed significant growth is Paterson, which traditionally had crime issues that hampered property investment. However, Zillow data indicates that two Paterson zip codes are among those that appreciated most rapidly from February 2020 to June 2021, with “07501” jumping 32 percent and “07522” rising 26 percent. A major contributor was demographic shifts related to the pandemic.
A burden of foreclosures forced many people to move out of their homes and into apartment leases. On the other side, construction of apartments was uphold until the last few years because many builders couldn't get loans during the credit crisis.In certain places, this led to lease and a rise in rents.
While home prices have increased 12% year-over-year in 2013, the fastest rate since 2006, prices remain below the peak levels seen during the housing bubble and are still undervalued compared to historic norms. Mortgage rates remain low but access to credit has tightened significantly compared to the bubble years, with average borrower credit scores much higher now. Some experts are concerned about the rise in home flipping but others note that investors are putting more of their own money at risk this time rather than relying on easy credit. Overall most data suggests that while the housing recovery is gaining momentum, conditions do not yet point to a new bubble forming across the market.
Does less regulation equal more loan defaultsusmajormovers
The recent U.S. House vote to roll back mortgage lending limits of the 2010 Dodd-Frank Bill was termed the “crown jewel” of Republican reform, but it is by no means a shoe-in in the Senate. However, if efforts are successful at raising the Debt-to-Income (DTI) ratio from its present 43% limit, what effect will the change have on future loan default rates? No one seems to have a functioning crystal ball, but there are few historical statistics to rely upon for hints.
This document discusses principal reduction for underwater mortgages. It presents opposing views that principal reduction amounts to a taxpayer bailout of reckless borrowers or a bank bailout. Alternatively, principal reduction could help address the foreclosure crisis by easing the burden on homeowners. However, others warn that principal reduction may encourage strategic default and create a moral hazard by rewarding past poor behavior. The document seeks to separate fact from fiction around these perspectives on principal reduction.
Daily Economic Update: September 20, 2010NAR Research
The National Association of Home Builders/Wells Fargo Housing Market Index remained unchanged, reflecting limited strength from home buyers. Flow of Funds data indicated household wealth fell 2.8% in Q2 2010 due to declines in financial assets like stocks. Home mortgage debt also fell at an annual rate of 2.25% while owners' equity in household real estate increased slightly, reflecting increased foreclosure sales.
Citylets is Scotland's leading residential lettings site, with over 3.3 million annual visitors and advertising over 70,000 properties per year. It has over 500 agent clients and has seen visitor traffic double since 2009 and triple since 2007. Citylets is the number one search phrase for visitors to Scottish lettings sites and records around three times more brand searches than its nearest competitor.
Grand Action, a non-profit organization of wealthy benefactors in Grand Rapids, led development of three major projects in the 1990s that transformed downtown - Van Andel Arena, DeVos Place Convention Center, and the Grand Rapids Downtown Market. These large-scale projects increased rents, occupancy, and attracted new investment across the region. With high demand, low vacancy, and low interest rates, new construction of industrial and Class A office space is beginning. Rental rates have risen as office building sales and leasing activity increase due to the expanding market and lack of quality office properties. Limited availability is forcing owners to get creative with multipurpose buildings to attract tenants and compete in the increasingly urban market, where two types
Rents in urban areas like downtown Detroit are typically $4-6 per square foot higher than suburban rents, and can be up to $9-11 higher due to factors like city income taxes. However, companies seeking to attract skilled workers and be located in areas of economic activity are finding benefits to downtown locations. This shift has changed the traditional relationship between higher suburban and lower urban rents and occupancy rates.
This document provides information about an investment opportunity through AIP Limited Partnership to acquire residential real estate properties in Detroit, Michigan. AIP is raising up to $3.4 million to purchase and renovate up to 100 single-family homes. The homes will be rented and managed by a local property management company. The summary highlights reasons for investing in Detroit such as strong job growth and population increases, a shortage of housing supply, affordable home prices, and rising rental yields. Sample properties located in desirable neighborhoods that are currently rented and meeting Section 8 requirements are described.
Office employment in Detroit contracted in recent months, with professional and business services adding 2,300 jobs but financial services losing 3,900 jobs. Downtown Detroit saw a high-profile lease announcement from Fifth Third Bank for 62,000 square feet in One Woodward to become its new regional headquarters. In the fourth quarter, Bedrock Real Estate Services and Meridian Health purchased the 1.1 million square foot Compuware building for $142 million, planning to consolidate employees starting in 2015.
Downtown Detroit is in the midst of a renaissance, bolstered by a recent series of high-profile lease announcements, the latest of which was by Fifth Third Bank.
Rising tenant demand in the Cincinnati office market has increased the amount of office space under construction to its highest level in years. The largest proposed development is a 10-story, 235,000 square foot speculative office tower in downtown Cincinnati. Meanwhile, the Blue Ash/Montgomery submarket has seen a surge in leasing activity and significant deals like Kroger taking over a 176,000 square foot building. Across Class A and B properties, average asking rental rates have risen 2-3% over the past year and are expected to continue increasing due to a tightening market and high tenant activity.
Rising tenant demand in the Cincinnati office market has increased the amount of office space under construction to its highest level in years. The largest upcoming project is a potential 10-story, 235,000 square foot office tower in downtown Cincinnati. Leasing activity has also surged in the Blue Ash/Montgomery submarket following years of decline. Rental rates have risen as well, with Class A space now averaging $21.87 per square foot and Class B space at $15.84 per square foot, reflecting a tightening market with increasing tenant activity.
Rising tenant demand in the Cincinnati office market has increased the amount of office space under construction to its highest level in years. The largest proposed development is a 10-story, 235,000 square foot speculative office tower in downtown Cincinnati. Meanwhile, the Blue Ash/Montgomery submarket has seen a surge in leasing activity and significant deals like Kroger taking over a 176,000 square foot building. Across Class A and B properties, average asking rental rates have risen 2-3% over the past year and are expected to continue increasing due to a tightening market and high tenant activity.
Vacancy at the top of the market is slowly moving upward, although levels remain below historic norms. New supply and givebacks upon relocation due to efficiency have begun to and will continue to result in rising vacancy.
Q1 2015 U.S. office market statistics, trends and outlookJLL
Though vacancy remained unchanged at 15.6 percent in Q1, as the year continues we expect it to drop below 15 percent for the first time in a decade. Corporate growth is driving expansionary activity, and tenants are thus faced with increasingly challenging market conditions. Currently more than one-third of all markets are favorable to landlords, and that’s expected to increase to three-quarters. With this leverage, landlords will continue driving rents upward, potentially surpassing a 5.0-percent increase by year end.
Learn more and see market-by-market data at http://bit.ly/1Cfucrv
Presentation For A Detroit Based Real EstateOodakam
The document promotes investment in Detroit real estate, noting the city is undergoing an economic revival which presents opportunities for low-cost, high-yield investments. It highlights features like a 10-year income warranty, fully managed turnkey operations, and pre-rehabbed income-generating properties available from $25,000 to $1.5 million with ROIs up to 26%. Examples of specific investment properties in Detroit are provided along with their prices, projected ROIs, and annual net returns.
Over the coming year, rent increases are forecasted to continue within the Class A product type while asking rents for Class B assets are forecasted to hold firm as vacancy increases and negotiating leverage shifts.
Northern New Jersey’s Paterson Real Estate Market RisesJamie Simon
Jamie Simon-Wainick is a real estate professional committed to assisting New Jersey clients in the property acquisition and sale process. Knowledgeable about the community she serves, Jamie Simon-Wainick stays informed on real estate trends across northern New Jersey.
One community that has witnessed significant growth is Paterson, which traditionally had crime issues that hampered property investment. However, Zillow data indicates that two Paterson zip codes are among those that appreciated most rapidly from February 2020 to June 2021, with “07501” jumping 32 percent and “07522” rising 26 percent. A major contributor was demographic shifts related to the pandemic.
A burden of foreclosures forced many people to move out of their homes and into apartment leases. On the other side, construction of apartments was uphold until the last few years because many builders couldn't get loans during the credit crisis.In certain places, this led to lease and a rise in rents.
While home prices have increased 12% year-over-year in 2013, the fastest rate since 2006, prices remain below the peak levels seen during the housing bubble and are still undervalued compared to historic norms. Mortgage rates remain low but access to credit has tightened significantly compared to the bubble years, with average borrower credit scores much higher now. Some experts are concerned about the rise in home flipping but others note that investors are putting more of their own money at risk this time rather than relying on easy credit. Overall most data suggests that while the housing recovery is gaining momentum, conditions do not yet point to a new bubble forming across the market.
Does less regulation equal more loan defaultsusmajormovers
The recent U.S. House vote to roll back mortgage lending limits of the 2010 Dodd-Frank Bill was termed the “crown jewel” of Republican reform, but it is by no means a shoe-in in the Senate. However, if efforts are successful at raising the Debt-to-Income (DTI) ratio from its present 43% limit, what effect will the change have on future loan default rates? No one seems to have a functioning crystal ball, but there are few historical statistics to rely upon for hints.
This document discusses principal reduction for underwater mortgages. It presents opposing views that principal reduction amounts to a taxpayer bailout of reckless borrowers or a bank bailout. Alternatively, principal reduction could help address the foreclosure crisis by easing the burden on homeowners. However, others warn that principal reduction may encourage strategic default and create a moral hazard by rewarding past poor behavior. The document seeks to separate fact from fiction around these perspectives on principal reduction.
Daily Economic Update: September 20, 2010NAR Research
The National Association of Home Builders/Wells Fargo Housing Market Index remained unchanged, reflecting limited strength from home buyers. Flow of Funds data indicated household wealth fell 2.8% in Q2 2010 due to declines in financial assets like stocks. Home mortgage debt also fell at an annual rate of 2.25% while owners' equity in household real estate increased slightly, reflecting increased foreclosure sales.
Citylets is Scotland's leading residential lettings site, with over 3.3 million annual visitors and advertising over 70,000 properties per year. It has over 500 agent clients and has seen visitor traffic double since 2009 and triple since 2007. Citylets is the number one search phrase for visitors to Scottish lettings sites and records around three times more brand searches than its nearest competitor.
Grand Action, a non-profit organization of wealthy benefactors in Grand Rapids, led development of three major projects in the 1990s that transformed downtown - Van Andel Arena, DeVos Place Convention Center, and the Grand Rapids Downtown Market. These large-scale projects increased rents, occupancy, and attracted new investment across the region. With high demand, low vacancy, and low interest rates, new construction of industrial and Class A office space is beginning. Rental rates have risen as office building sales and leasing activity increase due to the expanding market and lack of quality office properties. Limited availability is forcing owners to get creative with multipurpose buildings to attract tenants and compete in the increasingly urban market, where two types
Rents in urban areas like downtown Detroit are typically $4-6 per square foot higher than suburban rents, and can be up to $9-11 higher due to factors like city income taxes. However, companies seeking to attract skilled workers and be located in areas of economic activity are finding benefits to downtown locations. This shift has changed the traditional relationship between higher suburban and lower urban rents and occupancy rates.
This document provides information about an investment opportunity through AIP Limited Partnership to acquire residential real estate properties in Detroit, Michigan. AIP is raising up to $3.4 million to purchase and renovate up to 100 single-family homes. The homes will be rented and managed by a local property management company. The summary highlights reasons for investing in Detroit such as strong job growth and population increases, a shortage of housing supply, affordable home prices, and rising rental yields. Sample properties located in desirable neighborhoods that are currently rented and meeting Section 8 requirements are described.
Office employment in Detroit contracted in recent months, with professional and business services adding 2,300 jobs but financial services losing 3,900 jobs. Downtown Detroit saw a high-profile lease announcement from Fifth Third Bank for 62,000 square feet in One Woodward to become its new regional headquarters. In the fourth quarter, Bedrock Real Estate Services and Meridian Health purchased the 1.1 million square foot Compuware building for $142 million, planning to consolidate employees starting in 2015.
Downtown Detroit is in the midst of a renaissance, bolstered by a recent series of high-profile lease announcements, the latest of which was by Fifth Third Bank.
Rising tenant demand in the Cincinnati office market has increased the amount of office space under construction to its highest level in years. The largest proposed development is a 10-story, 235,000 square foot speculative office tower in downtown Cincinnati. Meanwhile, the Blue Ash/Montgomery submarket has seen a surge in leasing activity and significant deals like Kroger taking over a 176,000 square foot building. Across Class A and B properties, average asking rental rates have risen 2-3% over the past year and are expected to continue increasing due to a tightening market and high tenant activity.
Rising tenant demand in the Cincinnati office market has increased the amount of office space under construction to its highest level in years. The largest upcoming project is a potential 10-story, 235,000 square foot office tower in downtown Cincinnati. Leasing activity has also surged in the Blue Ash/Montgomery submarket following years of decline. Rental rates have risen as well, with Class A space now averaging $21.87 per square foot and Class B space at $15.84 per square foot, reflecting a tightening market with increasing tenant activity.
Rising tenant demand in the Cincinnati office market has increased the amount of office space under construction to its highest level in years. The largest proposed development is a 10-story, 235,000 square foot speculative office tower in downtown Cincinnati. Meanwhile, the Blue Ash/Montgomery submarket has seen a surge in leasing activity and significant deals like Kroger taking over a 176,000 square foot building. Across Class A and B properties, average asking rental rates have risen 2-3% over the past year and are expected to continue increasing due to a tightening market and high tenant activity.
Vacancy at the top of the market is slowly moving upward, although levels remain below historic norms. New supply and givebacks upon relocation due to efficiency have begun to and will continue to result in rising vacancy.
Q1 2015 U.S. office market statistics, trends and outlookJLL
Though vacancy remained unchanged at 15.6 percent in Q1, as the year continues we expect it to drop below 15 percent for the first time in a decade. Corporate growth is driving expansionary activity, and tenants are thus faced with increasingly challenging market conditions. Currently more than one-third of all markets are favorable to landlords, and that’s expected to increase to three-quarters. With this leverage, landlords will continue driving rents upward, potentially surpassing a 5.0-percent increase by year end.
Learn more and see market-by-market data at http://bit.ly/1Cfucrv
Presentation For A Detroit Based Real EstateOodakam
The document promotes investment in Detroit real estate, noting the city is undergoing an economic revival which presents opportunities for low-cost, high-yield investments. It highlights features like a 10-year income warranty, fully managed turnkey operations, and pre-rehabbed income-generating properties available from $25,000 to $1.5 million with ROIs up to 26%. Examples of specific investment properties in Detroit are provided along with their prices, projected ROIs, and annual net returns.
Over the coming year, rent increases are forecasted to continue within the Class A product type while asking rents for Class B assets are forecasted to hold firm as vacancy increases and negotiating leverage shifts.
Despite rising multifamily construction starts, the current stock of rental units is struggling to meet demand in some areas. This problem is particularly acute for affordable and workforce housing. High construction costs driven by rising land and material prices are inhibiting new supply, especially of more affordable units. Most new multifamily projects consist of high-end apartments, exacerbating the shortage of affordable rentals. To make projects profitable given high costs, developers have focused on acquiring premium sites and pricing new units at the higher end of the market. This concentration of high-cost units in large cities further squeezes the supply of affordable housing.
This document discusses trends in the Mid-Atlantic commercial realty market. Vacancy rates increased in Northern Virginia, Suburban Maryland, and Washington DC in 2009. Asking rental rates decreased 3-5% while effective rental rates fell 10-20%. Landlords are offering more free rent to keep rental rates high and attract tenants in the weak market. Offering free rent allows landlords to report higher property values, as value is based on rental income. Tenants have negotiating leverage and should seek reduced leasing costs through concessions like free rent.
Please also find attached our Real Estate Supplement. In it you will read about how issuance of bonds backed by commercial properties is on track to beat last year's supply and yield premiums for bonds backed by commercial property loans have narrowed. Also, Jefferies CMBS veteran Lisa Pendergast says she expects CMBS spreads to narrow by year end, while Fannie Mae economists Douglas Duncan and Patrick Simmons argue that a slowdown in the growth of the labor force suggests more modest prospects for the demand for new housing and construction. Emile J. Brinkmann, the chief economist of the Mortgage Bankers Association of America, probes how state regulations will affect the pace of foreclosures and delinquencies. Nicolas Retsinas of Harvard’s Joint Center for Housing has some advice for lawmakers on GSE reform and Donald Trump offers a characteristically confident view that the recovery in real estate. If you have any comments or feedback for future real estate issues please contact arozens@bloomberg.net.
Office investment sales volume in the Washington D.C. area increased 36% in 2014 compared to 2013, with core assets trading at higher valuations due to low interest rates and available capital. Capitalization rates for core assets declined nearly 50 basis points from 2013 to 2014. While the leasing market remains weak with high vacancies, the capital market continues to outperform due to investment security from the large government presence. As the market transitions away from government dependence, more secondary and tertiary assets may come to market if leasing conditions do not improve. Class B assets in transit-oriented locations present opportunities for higher returns compared to core assets.
1) Downtown Detroit is experiencing a renaissance bolstered by large lease announcements like Fifth Third Bank signing a lease for 62,000 square feet to serve as its regional headquarters.
2) Office employment in Detroit grew in 2014, led by gains in the professional and business services sector, though growth tapered somewhat. Unemployment decreased to 6.3%.
3) Landlords in Detroit have begun pushing rents higher due to declining vacancy rates and steady demand gains in recent years. Class A asking rents were up 2.9% year-over-year in Q1 2015.
The Indy industrial market continued to grow this quarter. Net absorption has already surpassed last year’s total and completed construction is closing in on last year’s total.
Finance and insurance driving expansions and relocations in the market
As of third quarter, metro employment in the finance and insurance industries finally approached pre-recession levels.
The office market saw substantial leasing activity from firms like Ally Financial which recently relocated 150 employees to the Shoreview Corporate Center with plans to add another 250 jobs by 2017.
Other firms like One Beacon Insurance Group, Securian Financial Group, Travelers Companies, and General Casualty Company have either invested in new space or absorbed existing space in all corners of the Minneapolis-St. Paul market.
Minneapolis CBD leads in large leasing deals
Vacancy rates in Minneapolis CBD continue their trend of shrinking every quarter. Vacancy at IDS Center declined 250 basis points since 2014 and the building now has its lowest quarterly vacancy in recent years. The demand for premium downtown office space is substantial and even co-working firms are getting in on the craze. Recently, two shared-space companies out of Chicago, Industrious and Assemble, leased a collective 36,000 sf with plans to rent out collaborative workspace to entrepreneurs and small firms by end of year.
Leasing activity and tenant demand in Cleveland looks quite strong. Office employment sectors have recorded sustained jobs growth over the last three years, which is translating into increased tenant demand.
Corporate consolidations over the next three years will place upward pressure on vacancy rates across the Pittsburgh metro office market. Rents have appreciated 3.3% year-over-year on average across all classes and submarkets as landlords maintained leverage amid tightening fundamentals. Office construction remains robust with nearly 1 million square feet under construction and 500,000 square feet scheduled to break ground next year.
The document reports on employment trends in Indianapolis from 2010 to 2015. It shows that non-farm employment reached its highest level ever in August 2015 at 1,030,100 jobs. The unemployment rate declined to 4.2% for Indianapolis and 4.6% for Indiana. Several sectors experienced strong growth over the past year, including trade/transportation/utilities which grew by 6.1%, manufacturing by 2.2%, and leisure/hospitality by 4%.
In Q3 2015, office leasing activity in Detroit totaled 1.7 million square feet across 54 transactions. The largest lease signed was for nearly 89,000 square feet in the Growing submarket. Most leases were for new tenants entering the market or renewals by current occupants. Leasing activity was strongest in the Birmingham, Dearborn, and Northern I-275 Corridor submarkets and focused in the healthcare, technology, and professional services industries.
After increasing in July, the local labor market contracted by 2,000 workers in August. Along with that employment held flat, still near a historic high. As a result, unemployment edged down 40 basis points to 3.3 percent.
The size of the local labor force declined by 32,000 workers in August. That contraction caused the unemployment rate to decline 40 basis points to 5.7 percent.
According to the most recent estimates from the Bureau of Labor Statistics, total nonfarm employment in Detroit stood at ~2.0 million payrolls, representing an annualized increase of 45,200 jobs or 2.4 percent. Meanwhile, unemployment decreased 2.7 percentage points year-over-year to 6.2 percent.
Total net absorption across the metro equaled 322,977 square feet in the third quarter, a welcome change from the negative absorption posted in each of the previous two quarters.
Health tech firms are growing rapidly in the Minneapolis-St. Paul area, with 34 companies moving or expanding operations there in the last four years, according to a LifeScience Alley report. On average, these health tech company moves or expansions involved 79,619 square feet of new space and 86 added jobs, larger than most other industries. Some of the companies expanding include Upsher-Smith Laboratories, Smiths Medical, National Marrow Donor Program, and St. Jude Medical.
The document discusses employment growth in different sectors in the Indianapolis market. It notes that the professional & business services and trade, transportation & utilities sectors have shown the highest continual growth since 2010, adding over 20,000 jobs over the past year. While mining & logging has consistently had limited growth, there is no clear trend for the sector with the least growth, though information and government have also shown little growth in recent years.
Detroit’s economy added 46,900 net new jobs over the last year, representing a 2.5 percent increase. With steady employment gains across the metro, look for further improvement in Detroit’s office and industrial property sectors.
Manufactured goods constitute 90 percent of Illinois exports and roughly half of the state’s manufacturing output. Last year Chicago area companies accounted for over two thirds of the $68.3 billion worth of exports that originated in Illinois. Metro exports have exhibited steady improvement over the past five years growing by an average of $3.8 billion annually as manufacturing user demand followed suit.
Roughly 60 percent of Chicago’s exports were sent to countries with existing free trade agreements in place. According to the Department of Commerce members of the proposed Trans-Pacific Partnership imported $28.7 billion worth of products from Chicagoland last year. Should TPP move forward escalating trade volumes are likely to impact the local industrial market.
- Indianapolis unemployment rate decreased slightly to 4.4% while total employment reached a new historical high of 981,713 jobs.
- U.S. job growth in August was lower than expected at 173,000 jobs, below the recent range of 200,000-250,000. The U.S. unemployment rate fell to 5.1%.
- Indianapolis saw growth across many sectors such as trade, transportation, and utilities (6.0%), professional and business services (5.1%), and manufacturing (2.1%).
The local labor force remained flat in July as the influx of college graduates leveled off. That, coupled with a growth in employment caused the unemployment rate to decline 20 basis points to 6.1 percent.
As the festive season approaches, there are several compelling reasons why this is the best time to consider buying property in Indore.
Indore, often called the "Mini Mumbai" of India, has witnessed remarkable growth in recent years, making it an attractive destination for property investment.
With its booming economy, well-planned infrastructure, and cultural diversity, Indore has become a hub for real estate development. As the festive season approaches, there are several compelling reasons why this is the best time to consider buying property in Indore.
An exclusive research study by Sunil Agarwal & Associates delves into the surging demand for 4 BHK homes during Quarter 1, 2023.
Indore, the vibrant heart of Madhya Pradesh, is witnessing an exciting transformation in its real estate landscape.
An exclusive research study by Sunil Agarwal & Associates delves into the surging demand for 4 BHK homes during Quarter 1, 2023. This unprecedented 70% increase compared to the same period in 2022 reflects a dynamic shift in preferences, shaping a new paradigm in the residential market and unleashing opportunities for homebuyers and investors alike.
We are delighted to present our latest commercial project, "Unity One," developed by TR Constructions and marketed by Sunil Agrawal and Associates.
We are delighted to present our latest commercial project, "Unity One," developed by TR Constructions and marketed by Sunil Agrawal and Associates.
When it comes to purchasing a house in Indore, you'll often find yourself facing a crucial decision: should you pay in cash or opt for financing?
In the realm of real estate, the age-old debate between paying for a house in cash or financing it through a mortgage is a topic that continues to intrigue prospective buyers.
🌟 Find Your Balance with Oree Reality
Happy International Yoga Day! 🌿 At Oree Reality, we believe in the harmony of mind, body, and home. Just as yoga brings balance and peace, finding the perfect home can do the same for your life.
Why is Revit MEP Outsourcing considered an as good option for construction pr...MarsBIM1
Outsourcing MEP modeling services require effective collaboration and coordination amongst multiple engineering trades. The engineers and the designers often change the details of the MEP projects, but the work of Revit MEP drafting services is having the master plan and model of the complete project. To have proper coordination and installation, there is a need to execute the project effectively. Hence, the work of Revit family creation facilitates the MEP engineers.
36,778 sq. ft. building; Zoning: SE (Suburban Employment): The (SE) District allows numerous commercial site uses; Passenger elevator; Private and common restrooms; Fully sprinkled; Data center with a grounded floor and a specialized HVAC system; 60 KVA back-up generator; Building/pylon signage; Potential to purchase adjacent parcels; Sale Price: $4,413,360
Expressways of India: A Comprehensive Guidenarinav14
India’s expressway network is a testament to the nation’s dedication to improving infrastructure and connectivity. These high-speed corridors facilitate seamless travel across vast distances, reducing travel time and fuel consumption
Indore is one of the fastest-growing cities in India, with a rapidly expanding economy and a booming real estate market.
Real estate investment can be a lucrative way to build wealth and generate passive income. However, it can also be intimidating for novices, especially in a city like Indore, which is rapidly growing and expanding. Here we'll discuss some real estate investment strategies for beginners in Indore.
Where Luxury Meets Convenience
Sunil Agrawal and Associates has recently revealed its most exquisite and upscale plotting project in Indore named Meadows by the Orchard.
Discover Unprecedented Living
with the Premium Plotting Project
SAA has recently revealed its most exquisite and upscale plotting project named Meadows by the Orchard. This extraordinary venture is a true embodiment of a high-end lifestyle, combining opulence, aesthetics, and functionality for an unparalleled living experience.
Gianluigi Torzi | Managing Director and Head of Capital MarketsGianluigi Torzi
Gianluigi Torzi is a prominent figure in the financial industry, known for his strategic leadership as Managing Director and Head of Capital Markets for the Middle East and Africa. Gianluigi Torzi extensive experience in investment banking equips him with the skills to navigate complex financial landscapes and deliver exceptional results for clients
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Office Insight Q3 2015-Detroit
1. Aggregate value of refinancing in the CBD (2013-2015)
Source: JLL Research
Square feet of office product delivered
Source: JLL Research
Urban vs suburban, rents and vacancies
Source: JLL Research
Detroit’s office fundamentals continue upward
2,257
Office Insight
Detroit | Q3 2015
61,021,219
Total inventory (s.f.)
441,047
Q2 2015 net absorption (s.f.)
$18.23
Direct average asking rent
376,000
Total under construction (s.f.)
22.8%
Total vacancy
710,602
YTD net absorption (s.f.)
3.5%
12-month rent growth
93.8%
Total preleased
Landlords are beginning to refinance downtown properties
Downtown Detroit is beginning to show its credit worthiness to the capital
markets. With interest rates at all time lows but expected to rise in the near
future, investors are looking to take advantage. Recently a deal closed for the
First National Building to get a $70 million loan, which was brokered by Bernard
Financial. The building was purchased by an affiliate of Dan Gilbert in August
2011 for $8.1 million. It is the largest commercial mortgage-backed securities
loan on a Detroit building since Bedrock and Meridian Health purchased One
Campus Martius last year for $142 million. The pie chart represents the
aggregate value of refinancing activity in the CBD.
Office construction is on the upswing in Metro Detroit
Detroit’s office development is beginning to move beyond the rehabbing of old
buildings. Increasing rents, positive absorption and limited availability are
determining factors needed to give developers the confidence to start new
construction. As of third quarter 2015, 310,000 square feet was delivered, up
from 97,562 square feet in the previous year. As of now, new construction is
primarily owner-occupied and build to suit, however, we project speculative
construction will increase as inventory continues to tighten across the
submarkets.
Urban submarkets continue to outperform suburban submarkets
Detroit’s submarkets are in the midst of a tug of war. In the urban submarkets,
the average asking rent currently stands at $20.08 per square foot, up 5.1
percent from this time last year. Meanwhile, vacancy has steadily decreased
year-over-year from 17.9 percent to 14.4 percent today. In the suburban
submarkets, ownership is more diverse, and although rents are improving, they
are appreciating at a slower pace than they are downtown. Suburban rents have
increased 3.8 percent year-over-year to $17.91 per square foot. Furthermore,
total vacancy in the suburbs remains elevated and relatively fixed, showing little
improvement over the last four years.
$15
$18
$21
0%
15%
30%
Q3 2012 Q3 2013 Q3 2014 Q3 2015
Urban Rents Suburban Rents
Urban Vacancy Suburban Vacancy
First National Building
One Woodward Building
1001 Woodward
Fmr United Way Bldg
Chyrsler House
10.1M
41.0M
70.0M
37.0M
51.5M
0
150,000
300,000
450,000
600,000
2010 2011 2012 2013 2014 2015 YTD
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