National USA Office Market Report 1st Quarter 2017
William Gary, MBA, MIM ITRA MacLaurin Williams 9233 Park Meadows Drive Suite 155 Denver, CO USA 80124-5426 Phone: 303-294-0277 Email:
[email protected] Website: www.MacLW.com
First Quarter 2017 – National
National Office Market Table of Contents Table of Contents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A Methodology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B Terms & Definitions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . C Market Highlights & Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Inventory & Development Analysis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Inventory & Development Analysis Select Top Deliveries Select Top Under Construction Properties Figures at a Glance by Class & Submarket Figures at a Glance Grouped by CBD vs Suburban Historical Figures at a Glance Leasing Activity Analysis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 Select Top Lease Transactions Sales Activity Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 Sales Activity Analysis Select Top Sales Transactions
©2017 CoStar Group, Inc.
CoStar Office Statistics
A
National – First Quarter 2017
National Office Market Methodology The CoStar Office Statistics, unless specifically stated otherwise, calculates office statistics using CoStar Group’s entire database of existing and under construction office buildings in each metropolitan area. Included are office, office condominium, office loft, office medical, all classes and all sizes, and both multi-tenant and single-tenant buildings, including owner-occupied buildings. CoStar Group's global database includes approximately 95.6 billion square feet of coverage in 4.4 million properties. All rental rates reported in the CoStar Office Report have been converted to a Full Service equivalent rental rate. CoStar regularly opens new markets to expand its geographic coverage which results in varying start dates for historical data. Due to differences in market start dates and a desire to show as long a historical timeframe as possible, only the following markets are included in the historical charts within this report: Atlanta, Austin, Baltimore, Boston, Broward County, Charlotte, Chicago, Cincinnati, Cleveland, Columbus, Dallas/Ft Worth, Dayton, Denver, Detroit, East Bay/Oakland, Houston, Indianapolis, Inland Empire (California), Jacksonville (Florida), Kansas City, Long Island (New York), Los Angeles, Memphis, Miami-Dade County, Nashville, Northern New Jersey, Orange (California), Orlando, Palm Beach County, Philadelphia, Phoenix, Pittsburgh, Raleigh/Durham, Sacramento, San Diego, San Francisco, Seattle/Puget Sound, South Bay/San Jose, St. Louis, Tampa/ St Petersburg, Washington, and Westchester/So Connecticut. When ever possible all markets are included to provide as broad as possible national coverage. The Market Highlights and Overview narrative includes all markets.
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© Copyright 2017 CoStar Group, Inc. All Rights Reserved. Although CoStar makes efforts to ensure the accuracy and reliability of the information contained herein, CoStar makes no guarantee, representation or warranty regarding the quality, accuracy, timeliness or completeness of the information. The publication is provided ‘as is’ and CoStar expressly disclaims any guarantees, representations or warranties of any kind, including those of MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. CoStar Group, Inc. 1331 L ST NW • Washington, DC 20005• (800) 204-5960 • www.costar.com • NASDAQ: CSGP B
CoStar Office Statistics
©2017 CoStar Group, Inc.
First Quarter 2017 – National
National Office Market Terms & Definitions Availability Rate: The ratio of available space to total rentable space, calculated by dividing the total available square feet by the total rentable square feet. Available Space: The total amount of space that is currently being marketed as available for lease in a given time period. It includes any space that is available, regardless of whether the space is vacant, occupied, available for sublease, or available at a future date. Build-to-Suit: A term describing a particular property, developed specifically for a certain tenant to occupy, with structural features, systems, or improvement work designed specifically for the needs of that tenant. A build-to-suit can be leased or owned by the tenant. In a leased build-to-suit, a tenant will usually have a long term lease on the space. Buyer: The individual, group, company, or entity that has purchased a commercial real estate asset. Cap Rate: Short for capitalization rate.The Cap Rate is a calculation that reflects the relationship between one year’s net operating income and the current market value of a particular property. The Cap Rate is calculated by dividing the annual net operating income by the sales price (or asking sales price). CBD: Abbreviation for Central Business District. (See also: Central Business District) Central Business District: The designations of Central Business District (CBD) and Suburban refer to a particular geographic area within a metropolitan statistical area (MSA) describing the level of real estate development found there. The CBD is characterized by a high density, well organized core within the largest city of a given MSA. Class A: A classification used to describe buildings that generally qualify as extremely desirable investment-grade properties and command the highest rents or sale prices compared to other buildings in the same market. Such buildings are well located and provide efficient tenant layouts as well as high quality, and in some buildings, one-ofa-kind floor plans. They can be an architectural or historical landmark designed by prominent architects. These buildings contain a modern mechanical system, and have above-average maintenance and management as well as the best quality materials and workmanship in their trim and interior fittings. They are generally the most attractive and eagerly sought by investors willing to pay a premium for quality. Class B: A classification used to describe buildings that generally qualify as a more speculative investment, and as such, command lower rents or sale prices compared to Class A properties. Such buildings offer utilitarian space without special attractions, and have ordinary design, if new or fairly new; good to excellent design if an older non-landmark building.These buildings typically have average to good maintenance, management and tenants. They are less appealing to tenants than Class A properties, and may be deficient in a number of respects including floor plans, condition and facilities. They lack prestige and must depend chiefly on a lower price to attract tenants and investors. Class C: A classification used to describe buildings that generally qualify as no-frills,older buildings that offer basic space and command lower rents or sale prices compared to other buildings in the same market. Such buildings typically have below-average maintenance and management, and could have mixed or low tenant prestige, inferior elevators, and/or mechanical/electrical systems. These buildings lack prestige and must depend chiefly on a lower price to attract tenants and investors. Construction Starts: Buildings that began construction during a specific period of time. (See also: Deliveries) Contiguous Blocks of Space: Space within a building that is,or is able to be joined together into a single contiguous space. Deliveries: Buildings that complete construction during a specified period of time. In order for space to be considered delivered, a certifi©2017 CoStar Group, Inc.
cate of occupancy must have been issued for the property. Delivery Date: The date a building completes construction and receives a certificate of occupancy. Developer: The company, entity or individual that transforms raw land to improved property by use of labor, capital and entrepreneurial efforts. Direct Space: Space that is being offered for lease directly from the landlord or owner of a building, as opposed to space being offered in a building by another tenant (or broker of a tenant) trying to sublet a space that has already been leased. Existing Inventory: The square footage of buildings that have received a certificate of occupancy and are able to be occupied by tenants. It does not include space in buildings that are either planned, under construction or under renovation. Flex Building: A type of building designed to be versatile, which may be used in combination with office (corporate headquarters), research and development, quasi-retail sales, and including but not limited to industrial, warehouse, and distribution uses. A typical flex building will be one or two stories with at least half of the rentable area being used as office space, have ceiling heights of 16 feet or less, and have some type of drive-in door,even though the door may be glassed in or sealed off. Full Service Rental Rate: Rental rates that include all operating expenses such as utilities, electricity, janitorial services, taxes and insurance. Gross Absorption: The total change in occupied space over a given period of time, counting space that is occupied but not space that is vacated by tenants. Gross absorption differs from leasing Activity, which is the sum of all space leased over a certain period of time. Unless otherwise noted Gross Absorption includes direct and sublease space. Growth in Inventory: The change in size of the existing square footage in a given area over a given period of time,generally due to the construction of new buildings. Industrial Building: A type of building adapted for such uses as the assemblage, processing, and/or manufacturing of products from raw materials or fabricated parts. Additional uses include warehousing,distribution,and maintenance facilities.The primary purpose of the space is for storing, producing, assembling, or distributing product. Landlord Rep: (Landlord Representative) In a typical lease transaction between an owner/landlord and tenant, the broker that represents the interests of the owner/landlord is referred to as the Landlord Rep. Leased Space: All the space that has a financial lease obligation. It includes all leased space, regardless of whether the space is currently occupied by a tenant. Leased space also includes space being offered for sublease. Leasing Activity: The volume of square footage that is committed to and signed under a lease obligation for a specific building or market in a given period of time. It includes direct leases, subleases and renewals of existing leases. It also includes any pre-leasing activity in planned, under construction, or under renovation buildings. Market: Geographic boundaries that serve to delineate core areas that are competitive with each other and constitute a generally accepted primary competitive set of areas. Markets are building-type specific, and are non-overlapping contiguous geographic designations having a cumulative sum that matches the boundaries of the entire Region (See also: Region). Markets can be further subdivided into Submarkets. (See also: Submarkets) Multi-Tenant: Buildings that house more than one tenant at a given time. Usually, multi-tenant buildings were designed and built to accommodate many different floor plans and designs for different
CoStar Office Statistics
C
National – First Quarter 2017
National Office Market tenant needs. (See also: Tenancy). Net Absorption: The net change in occupied space over a given period of time. Unless otherwise noted Net Absorption includes direct and sublease space. Net Rental Rate: A rental rate that excludes certain expenses that a tenant could incur in occupying office space. Such expenses are expected to be paid directly by the tenant and may include janitorial costs, electricity, utilities, taxes, insurance and other related costs. New Space: Sometimes called first generation space, refers to space that has never been occupied and/or leased by a tenant. Occupied Space: Space that is physically occupied by a tenant. It does not include leased space that is not currently occupied by a tenant. Office Building: A type of commercial building used exclusively or primarily for office use (business), as opposed to manufacturing, warehousing, or other uses. Office buildings may sometimes have other associated uses within part of the building, i.e., retail sales, financial, or restaurant, usually on the ground floor. Owner: The company, entity, or individual that holds title on a given building or property. Planned/Proposed: The status of a building that has been announced for future development but not yet started construction. Preleased Space: The amount of space in a building that has been leased prior to its construction completion date, or certificate of occupancy date. Price/SF: Calculated by dividing the price of a building (either sales price or asking sales price) by the Rentable Building Area (RBA). Property Manager: The company and/or person responsible for the day-to-day operations of a building, such as cleaning, trash removal, etc. The property manager also makes sure that the various systems within the building, such as the elevators, HVAC, and electrical systems, are functioning properly. Quoted Rental Rate: The asking rate per square foot for a particular building or unit of space by a broker or property owner. Quoted rental rates may differ from the actual rates paid by tenants following the negotiation of all terms and conditions in a specific lease. RBA: Abbreviation for Rentable Building Area. (See also: Rentable Building Area) Region: Core areas containing a large population nucleus, that together with adjacent communities have a high degree of economic and social integration. Regions are further divided into market areas, called Markets. (See also: Markets) Relet Space: Sometimes called second generation or direct space, refers to existing space that has previously been occupied by another tenant. Rentable Building Area: (RBA) The total square footage of a building that can be occupied by, or assigned to a tenant for the purpose of determining a tenant’s rental obligation. Generally RBA includes a percentage of common areas including all hallways, main lobbies, bathrooms, and telephone closets. Rental Rates: The annual costs of occupancy for a particular space quoted on a per square foot basis. Sales Price: The total dollar amount paid for a particular property at a particular point in time.
Sublease Space: Space that has been leased by a tenant and is being offered for lease back to the market by the tenant with the lease obligation. Sublease space is sometimes referred to as sublet space. Submarkets: Specific geographic boundaries that serve to delineate a core group of buildings that are competitive with each other and constitute a generally accepted primary competitive set, or peer group. Submarkets are building type specific (office, industrial, retail, etc.), with distinct boundaries dependent on different factors relevant to each building type. Submarkets are non-overlapping, contiguous geographic designations having a cumulative sum that matches the boundaries of the Market they are located within (See also: Market). Suburban: The Suburban and Central Business District (CBD) designations refer to a particular geographic area within a metropolitan statistical area (MSA). Suburban is defined as including all office inventory not located in the CBD. (See also: CBD) Tenancy: A term used to indicate whether or not a building is occupied by multiple tenants (See also: Multi-tenant) or a single tenant. (See also: Single-tenant) Tenant Rep: Tenant Rep stands for Tenant Representative. In a typical lease transaction between an owner/landlord and tenant, the broker that represents the interests of the tenant is referred to as a Tenant Rep. Time On Market: A measure of how long a currently available space has been marketed for lease, regardless of whether it is vacant or occupied. Under Construction: Buildings in a state of construction, up until they receive their certificate of occupancy. In order for CoStar to consider a building under construction, the site must have a concrete foundation in place. Abbreviated UC. Vacancy Rate: A measurement expressed as a percentage of the total amount of physically vacant space divided by the total amount of existing inventory. Under construction space generally is not included in vacancy calculations. Vacant Space: Space that is not currently occupied by a tenant, regardless of any lease obligation that may be on the space. Vacant space could be space that is either available or not available. For example, sublease space that is currently being paid for by a tenant but not occupied by that tenant, would be considered vacant space. Likewise, space that has been leased but not yet occupied because of finish work being done, would also be considered vacant space. Weighted Average Rental Rate: Rental rates that are calculated by factoring in, or weighting, the square footage associated with each particular rental rate. This has the effect of causing rental rates on larger spaces to affect the average more than that of smaller spaces. The weighted average rental rate is calculated by taking the ratio of the square footage associated with the rental rate on each individual available space to the square footage associated with rental rates on all available spaces, multiplying the rental rate by that ratio, and then adding together all the resulting numbers. Unless specifically specified otherwise,rental rate averages include both Direct and Sublet available spaces. Year Built: The year in which a building completed construction and was issued a certificate of occupancy. YTD: Abbreviation for Year-to-Date. Describes statistics that are cumulative from the beginning of a calendar year through whatever time period is being studied.
Sales Volume: The sum of sales prices for a given group of buildings in a given time period. Seller: The individual, group, company, or entity that sells a particular commercial real estate asset. SF: Abbreviation for Square Feet. Single-Tenant: Buildings that are occupied, or intended to be occupied by a single tenant. (See also: Build-to-suit and Tenancy)
D
CoStar Office Statistics
©2017 CoStar Group, Inc.
First Quarter 2017 – National
National Office Market Overview
U.S.’s Vacancy Stays at 9.7%
Net Absorption Positive 10,781,092 SF in the Quarter
T
he U.S. Office market ended the first quarter 2017 with a vacancy rate of 9.7%. The vacancy rate was unchanged over the previous quarter, with net absorption totaling positive 10,781,092 square feet in the first quarter. Vacant sublease space increased in the quarter, ending the quarter at 49,509,239 square feet. Rental rates ended the first quarter at $24.44, an increase over the previous quarter. A total of 339 buildings delivered to the market in the quarter totaling 21,291,741 square feet, with 154,430,090 square feet still under construction at the end of the quarter. Absorption Net absorption for the overall U.S. office market was positive 10,781,092 square feet in the first quarter 2017. That compares to positive 23,159,817 square feet in the fourth quarter 2016, positive 37,571,353 square feet in the third quarter 2016, and positive 36,488,314 square feet in the second quarter 2016. The Class-A office market recorded net absorption of positive 5,064,167 square feet in the first quarter 2017, compared to positive 12,211,221 square feet in the fourth quarter 2016, positive 14,072,524 in the third quarter 2016, and positive 10,835,904 in the second quarter 2016. The Class-B office market recorded net absorption of positive 5,936,261 square feet in the first quarter 2017, compared to positive 9,546,498 square feet in the fourth quarter 2016, positive 15,705,982 in the third quarter 2016, and positive 16,043,035 in the second quarter 2016. The Class-C office market recorded net absorption of negative (219,336) square feet in the first quarter 2017 com-
Vacancy Rates by Class* Class A
pared to positive 1,402,098 square feet in the fourth quarter 2016, positive 7,792,847 in the third quarter 2016, and positive 9,609,375 in the second quarter 2016. Net absorption for U.S.’s central business district was negative (1,261,439) square feet in the first quarter 2017. That compares to positive 3,525,939 square feet in the fourth quarter 2016, positive 3,456,785 in the third quarter 2016, and positive 6,565,117 in the second quarter 2016. Net absorption for the suburban markets was positive 12,042,531 square feet in the first quarter 2017. That compares to positive 19,633,878 square feet in fourth quarter 2016, positive 34,114,568 in the third quarter 2016, and positive 29,923,197 in the second quarter 2016. Vacancy The office vacancy rate in the U.S. market area remained at 9.7% at the end of the first quarter 2017. The vacancy rate was 9.7% at the end of the fourth quarter 2016, 9.7% at the end of the third quarter 2016, and 9.9% at the end of the second quarter 2016. Class-A projects reported a vacancy rate of 12.3% at the end of the first quarter 2017, 12.1% at the end of the fourth quarter 2016, 12.1% at the end of the third quarter 2016, and 12.1% at the end of the second quarter 2016. Class-B projects reported a vacancy rate of 9.7% at the end of the first quarter 2017, 9.8% at the end of the fourth quarter 2016, 9.9% at the end of the third quarter 2016, and 10.1% at the end of the second quarter 2016. Class-C projects reported a vacancy rate of 5.9% at the end of the first quarter 2017, 5.9% at the end of fourth quarter
2000-2017 Class B
Class C
Total Market
18%
16%
Vacancy Rate
14%
12%
10%
8%
6% 2000 4q
2001 4q
2002 4q
2003 4q
2004 4q
2005 4q
2006 4q
2007 4q
2008 4q
2009 4q
2010 4q
2011 4q
2012 4q
2013 4q
2014 4q
2015 4q
2016 4q
Source: CoStar Property® * Select markets included in this historical chart - see Methodology page.
©2017 CoStar Group, Inc.
Absorption & Deliveries*
CoStar Office Statistics
1
National � First Quarter 2017
National Office Market Overview
2016, 6.0% at the end of the third quarter 2016, and 6.4% at the end of the second quarter 2016. The overall vacancy rate in U.S.’s central business district at the end of the first quarter 2017 increased to 9.8%. The vacancy rate was 9.7% at the end of the fourth quarter 2016, 9.6% at the end of the third quarter 2016, and 9.7% at the end of the second quarter 2016. The vacancy rate in the suburban markets increased to 9.7% in the first quarter 2017. The vacancy rate was 9.6% at the end of the fourth quarter 2016, 9.8% at the end of the third quarter 2016, and 10.0% at the end of the second quarter 2016. Largest Lease Signings The largest lease signings occurring in 2017 included: the 550,750-square-foot lease signed by Oracle at 2300 Cloud Way in the Austin market; the 473,000-square-foot deal signed by the Federal Communications Commission at Sentinel Square III in the Washington DC market; and the 395,279-square-foot lease signed by RBC Capital Markets at 200 Vesey St in the New York City market. Sublease Vacancy The amount of vacant sublease space in the U.S. market increased to 49,509,239 square feet by the end of the first quarter 2017, from 46,480,913 square feet at the end of the fourth quarter 2016. There was 45,271,220 square feet vacant at the end of the third quarter 2016 and 42,476,631 square feet at the end of the second quarter 2016. U.S.’s Class-A projects reported vacant sublease space of 31,155,363 square feet at the end of first quarter 2017, up from the 28,425,796 square feet reported at the end of the fourth quarter 2016. There were 27,899,949 square feet of sublease space vacant at the end of the third quarter 2016, and 26,032,701 square feet at the end of the second quarter 2016. Class-B projects reported vacant sublease space of 16,471,878 square feet at the end of the first quarter 2017, up from the 16,298,530 square feet reported at the end of the fourth quarter 2016. At the end of the third quarter 2016 there were 15,733,391 square feet, and at the end of the second quarter 2016 there were 14,762,073 square feet vacant. Class-C projects reported increased vacant sublease space from the fourth quarter 2016 to the first quarter 2017. Sublease vacancy went from 1,756,587 square feet to 1,881,998 square feet during that time. There was 1,637,880 square feet at the end of the third quarter 2016, and 1,681,857 square feet at the end of the second quarter 2016. Sublease vacancy in U.S.’s central business district stood at 14,088,045 square feet at the end of the first quarter 2017. It was 13,089,995 square feet at the end of the fourth quarter 2016, 13,243,888 square feet at the end of the third quarter 2016, and 12,421,312 square feet at the end of the second quarter 2016. 2
Sublease vacancy in the suburban markets ended the first quarter 2017 at 35,421,194 square feet. At the end of the fourth quarter 2016 sublease vacancy was 33,390,918 square feet, was 32,027,332 square feet at the end of the third quarter 2016, and was 30,055,319 square feet at the end of the second quarter 2016. Rental Rates The average quoted asking rental rate for available office space, all classes, was $24.44 per square foot per year at the end of the first quarter 2017 in the U.S. market area. This represented a 0.5% increase in quoted rental rates from the end of the fourth quarter 2016, when rents were reported at $24.31 per square foot. The average quoted rate within the Class-A sector was $30.71 at the end of the first quarter 2017, while Class-B rates stood at $21.59, and Class-C rates at $17.71. At the end of the fourth quarter 2016, Class-A rates were $30.46 per square foot, Class-B rates were $21.53, and Class-C rates were $17.64. The average quoted asking rental rate in U.S.’s CBD was $31.94 at the end of the first quarter 2017, and $22.75 in the suburban markets. In the fourth quarter 2016, quoted rates were $31.83 in the CBD and $22.62 in the suburbs. Deliveries and Construction During the first quarter 2017, 339 buildings totaling 21,291,741 square feet were completed in the U.S. market area. This compares to 401 buildings totaling 20,318,606 square feet that were completed in the fourth quarter 2016, 446 buildings totaling 20,970,367 square feet completed in the third quarter 2016, and 20,140,495 square feet in 347 buildings completed in the second quarter 2016. There were 154,430,090 square feet of office space under construction at the end of the first quarter 2017. Some of the notable 2017 deliveries include: 150 N Riverside Dr, a 1,284,404-square-foot facility that delivered in first quarter 2017 and is now 82% occupied, and 609 Main at Texas, a 1,056,658-square-foot building that delivered in first quarter 2017 and is now 49% occupied. The largest projects underway at the end of first quarter 2017 were 3 World Trade Center, a 2,861,402-square-foot building with 37% of its space pre-leased, and Apple Park, a 2,800,000-square-foot facility that is 100% pre-leased. Inventory Total office inventory in the U.S. market area amounted to 10,807,080,486 square feet in 524,944 buildings as of the end of the first quarter 2017. The Class-A office sector consisted of 3,445,828,065 square feet in 18,233 projects. There were 200,989 Class-B buildings totaling 4,986,414,574 square feet, and the Class-C sector consisted of 2,374,837,847 square feet in 305,722 buildings. Within the Office market there were 22,091 owner-occupied buildings accounting for 981,814,076 square feet of office space.
CoStar Office Statistics
©2017 CoStar Group, Inc.
8%
First Quarter 2017 – National
6%
National Office Market 2000 4q
2001 4q
2002 4q
2003 4q
2004 4q
2005 4q
2006 4q
2007 4q
2008 4q
Source: CoStar Property® * Select markets included in this historical chart - see Methodology page.
Overview
Albany/Schenectady/Troy The vacancy rate remained unchanged in Albany/ Schenectady/Troy in the first quarter. With 13,300 square feet in deliveries, and positive 7,626 square feet in net absorption, the vacancy rate held at 4.8%, the same rate reported in the previous quarter. The market had 151,621 square feet under construction at the end of the quarter, and rental rates stood at $14.11 per square foot. Albuquerque The Albuquerque office market saw vacancies fall and rental rates decrease from the fourth quarter 2016 to the first quarter 2017. The overall vacancy rate currently sits at 7.7%, from 7.9% in the previous quarter. Rental rates ended the quarter at $14.90 per square foot, from $15.21 in the previous quarter. There was a total of 98,000 square feet that delivered in the quarter, with 43,000 square feet still under construction at the end of the quarter. Anchorage With no space currently under construction, Anchorage absorbed (125,424) square feet of space and delivered 15,000 square feet of space, resulting in a vacancy rate that went from 5.5% to 6.4% over the course of the quarter. Rental rates went from $28.30 to $28.31 per square foot.
©2017 CoStar Group, Inc.
Absorption & Deliveries* Past 7 Quarters Net Absorption
Deliveries
35.0 29.5
30.0 26.4
25.0 Millions SF
Sales Activity Tallying office building sales of 15,000 square feet or larger, U.S. office sales figures rose during the fourth quarter 2016 in terms of dollar volume compared to the third quarter of 2016. In the fourth quarter, 910 office transactions closed with a total volume of $26,353,342,063. The 910 buildings totaled 105,676,310 square feet and the average price per square foot equated to $249.38 per square foot. That compares to 871 transactions totaling $24,932,500,905 in the third quarter 2016. The total square footage in the third quarter was 94,296,896 square feet for an average price per square foot of $264.40. Total office building sales activity in 2016 was down compared to 2015. In the twelve months of 2016, the market saw 3,436 office sales transactions with a total volume of $96,117,220,838. The price per square foot averaged $264.16. In the same twelve months of 2015, the market posted 3,603 transactions with a total volume of $102,249,120,200. The price per square foot averaged $267.36. Cap rates have been lower in 2016, averaging 7.16% compared to the same period in 2015 when they averaged 7.20%. One of the largest transactions that has occurred within the last 4 quarters in the U.S. market is the sale of the Equitable Building in New York City. This 1.7-million square foot office building sold for $1.95-billion or $1,143.02 per square foot. The property sold on 01/27/2016, at a 4.6% cap rate.
23.5
23.4
21.7 18.8
20.0 16.4
16.0
15.6
15.0
16.816.5
13.1 9.9
8.8
10.0 5.0 0.0 2015 3q
2016 3q
Source: CoStar Property® * Select markets included in this chart - see Methodology page.
Asheville With no space currently under construction, Asheville absorbed 28,674 square feet of space and delivered 8,470 square feet of space, resulting in a vacancy rate that went from 3.0% to 2.8% over the course of the quarter. Rental rates went from $16.06 to $16.21 per square foot. Atlanta The vacancy rate remained unchanged in Atlanta in the first quarter. With 157,044 square feet in deliveries, and negative (184,269) square feet in net absorption, the vacancy rate held at 12.1%, the same rate reported in the previous quarter. The market had 5,578,371 square feet under construction at the end of the quarter, and rental rates stood at $22.30 per square foot. Augusta/Richmond County The Augusta/Richmond County office market ended the quarter with a vacancy rate of 7.2%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 23,244 square feet. Vacant sublease space stayed the same at 1,013 square feet. Rental rates ended the first quarter at $13.54, a decrease over the previous quarter. A total of three buildings with 24,000 square feet of space delivered to the market, with 13,288 square feet still under construction at the end of the quarter. Austin The vacancy rate remained unchanged in Austin in the first quarter. With 297,684 square feet in deliveries, and positive 225,553 square feet in net absorption, the vacancy rate held at 8.3%, the same rate reported in the previous quarter.
CoStar Office Statistics
3
2
National � First Quarter 2017
National Office Market Overview
The market had 3,842,183 square feet under construction at the end of the quarter, and rental rates stood at $32.47 per square foot. Bakersfield With no new office space being delivered to the market, and positive 7,313 square feet of net absorption, Bakersfield’s vacancy rate went from 5.8% to 5.7% in the quarter. Rental rates went from $18.72 to $18.96 during that time. At the end of the quarter, there was 101,800 square feet underway for future delivery. Baltimore The Baltimore office market ended the quarter with a vacancy rate of 10.4%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 898,285 square feet. Vacant sublease space increased to 355,411 square feet. Rental rates ended the first quarter at $22.72, an increase over the previous quarter. A total of four buildings with 349,079 square feet of space delivered to the market, with 1,526,870 square feet still under construction at the end of the quarter. Baton Rouge The Baton Rouge office market saw vacancies fall and rental rates decrease from the fourth quarter 2016 to the first quarter 2017. The overall vacancy rate currently sits at 9.3%, from 9.4% in the previous quarter. Rental rates ended the quarter at $16.85 per square foot, from $17.01 in the previous quarter. There was a total of 62,411 square feet that delivered in the quarter, with 220,837 square feet still under construction at the end of the quarter. Beaumont/Port Arthur The Beaumont/Port Arthur office market reported no new deliveries and no space under construction at the end of the first quarter 2017. With this limited construction activity, net absorption of positive 32,787 square feet caused the vacancy rate to down from 4.8%to 4.4% in the quarter. Rental rates stood at $14.35. Birmingham The Birmingham office market ended the quarter with a vacancy rate of 11.3%. The vacancy rate was up over the previous quarter, with net absorption totaling negative (175,821) square feet. Vacant sublease space increased to 92,618 square feet. Rental rates ended the first quarter at $16.67, a decrease over the previous quarter. A total of five buildings with 55,347 square feet of space delivered to the market, with 458,940 square feet still under construction at the end of the quarter. Boise City/Nampa The Boise City/Nampa office market ended the quarter with a vacancy rate of 7.4%. The vacancy rate was up over the previous quarter, with net absorption totaling negative
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(92,466) square feet. Vacant sublease space increased to 38,047 square feet. Rental rates ended the first quarter at $16.52, an increase over the previous quarter. A total of one building with 6,340 square feet of space delivered to the market, with 154,340 square feet still under construction at the end of the quarter. Boston The Boston office market ended the quarter with a vacancy rate of 8.0%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 1,114,738 square feet. Vacant sublease space decreased to 2,440,670 square feet. Rental rates ended the first quarter at $21.45, an increase over the previous quarter. A total of six buildings with 1,175,027 square feet of space delivered to the market, with 4,155,500 square feet still under construction at the end of the quarter. Bremerton/Silverdale The Bremerton/Silverdale office market reported no new deliveries and no space under construction at the end of the first quarter 2017. With this limited construction activity, net absorption of negative (10,507) square feet caused the vacancy rate to up from 7.9%to 8.1% in the quarter. Rental rates stood at $17.12. Broward County The Broward County office market ended the quarter with a vacancy rate of 9.7%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 610,110 square feet. Vacant sublease space increased to 337,603 square feet. Rental rates ended the first quarter at $26.40, a decrease over the previous quarter. A total of six buildings with 578,387 square feet of space delivered to the market, with 472,487 square feet still under construction at the end of the quarter. Brownsville/Harlingen With no space currently under construction, Brownsville/ Harlingen absorbed 22,744 square feet of space and delivered 7,000 square feet of space, resulting in a vacancy rate that went from 5.3% to 4.9% over the course of the quarter. Rental rates went from $15.73 to $15.70 per square foot. Buffalo/Niagara Falls The Buffalo/Niagara Falls office market saw vacancies rise and rental rates increase from the fourth quarter 2016 to the first quarter 2017. The overall vacancy rate currently sits at 9.1%, from 8.8% in the previous quarter. Rental rates ended the quarter at $15.83 per square foot, from $15.82 in the previous quarter. There was a total of 24,000 square feet that delivered in the quarter, with 138,000 square feet still under construction at the end of the quarter.
CoStar Office Statistics
©2017 CoStar Group, Inc.
First Quarter 2017 – National
National Office Market Overview
Charleston WV The Charleston WV office market ended the quarter with a vacancy rate of 8.3%. The vacancy rate was up over the previous quarter, with net absorption totaling negative (17,747) square feet. Vacant sublease space stayed the same at 16,431 square feet. Rental rates ended the first quarter at $15.13, a decrease over the previous quarter. A total of one building with 2,400 square feet of space delivered to the market, with 18,000 square feet still under construction at the end of the quarter. Charleston/N Charleston The Charleston/N Charleston office market ended the quarter with a vacancy rate of 7.1%. The vacancy rate was up over the previous quarter, with net absorption totaling negative (89,756) square feet. Vacant sublease space decreased to 27,150 square feet. Rental rates ended the first quarter at $21.31, an increase over the previous quarter. A total of five buildings with 57,055 square feet of space delivered to the market, with 620,359 square feet still under construction at the end of the quarter. Charlotte The Charlotte office market ended the quarter with a vacancy rate of 9.3%. The vacancy rate was up over the previous quarter, with net absorption totaling positive 66,679 square feet. Vacant sublease space decreased to 321,969 square feet. Rental rates ended the first quarter at $22.91, an increase over the previous quarter. A total of three buildings with 616,399 square feet of space delivered to the market, with 1,907,798 square feet still under construction at the end of the quarter. Chattanooga The Chattanooga office market saw vacancies rise and rental rates decrease from the fourth quarter 2016 to the first quarter 2017. The overall vacancy rate currently sits at 5.9%, from 5.7% in the previous quarter. Rental rates ended the quarter at $16.15 per square foot, from $16.75 in the previous quarter. There was a total of 10,000 square feet that delivered in the quarter, with 41,000 square feet still under construction at the end of the quarter. Chicago The Chicago office market ended the quarter with a vacancy rate of 13.3%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 2,504,279 square feet. Vacant sublease space increased to 3,245,822 square feet. Rental rates ended the first quarter at $23.84, an increase over the previous quarter. A total of six buildings with 1,823,604 square feet of space delivered to the market, with 4,079,157 square feet still under construction at the end of the quarter. Cincinnati The Cincinnati office market ended the quarter with a
©2017 CoStar Group, Inc.
vacancy rate of 9.4%. The vacancy rate was up over the previous quarter, with net absorption totaling negative (263,542) square feet. Vacant sublease space increased to 152,474 square feet. Rental rates ended the first quarter at $16.47, an increase over the previous quarter. A total of two buildings with 50,141 square feet of space delivered to the market, with 733,854 square feet still under construction at the end of the quarter. Cleveland The Cleveland office market ended the quarter with a vacancy rate of 11.0%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 252,736 square feet. Vacant sublease space increased to 132,523 square feet. Rental rates ended the first quarter at $17.02, a decrease over the previous quarter. A total of four buildings with 93,096 square feet of space delivered to the market, with 637,852 square feet still under construction at the end of the quarter. Colorado Springs With no new office space being delivered to the market, and positive 84,684 square feet of net absorption, Colorado Springs’s vacancy rate went from 11.9% to 11.6% in the quarter. Rental rates went from $16.64 to $15.87 during that time. At the end of the quarter, there was 112,440 square feet underway for future delivery. Columbia The Columbia office market saw vacancies fall and rental rates increase from the fourth quarter 2016 to the first quarter 2017. The overall vacancy rate currently sits at 6.5%, from 7.1% in the previous quarter. Rental rates ended the quarter at $15.79 per square foot, from $15.78 in the previous quarter. There was a total of 2,500 square feet that delivered in the quarter, with 73,460 square feet still under construction at the end of the quarter. Columbus With no new office space being delivered to the market, and positive 48,146 square feet of net absorption, Columbus’s vacancy rate went from 6.9% to 6.9% in the quarter. Rental rates went from $17.67 to $17.86 during that time. At the end of the quarter, there was 1,349,062 square feet underway for future delivery. Columbus GA With no new office space being delivered to the market, and negative (84,042) square feet of net absorption, Columbus GA’s vacancy rate went from 6.7% to 7.6% in the quarter. Rental rates went from $13.53 to $14.10 during that time. At the end of the quarter, there was 11,480 square feet underway for future delivery.
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National � First Quarter 2017
National Office Market Overview
Corpus Christi With no new office space being delivered to the market, and negative (88,910) square feet of net absorption, Corpus Christi’s vacancy rate went from 8.0% to 8.9% in the quarter. Rental rates went from $15.57 to $15.40 during that time. At the end of the quarter, there was 143,696 square feet underway for future delivery. Dallas/Ft Worth The Dallas/Ft Worth office market ended the quarter with a vacancy rate of 14.3%. The vacancy rate was up over the previous quarter, with net absorption totaling positive 1,525,503 square feet. Vacant sublease space increased to 2,266,225 square feet. Rental rates ended the first quarter at $24.52, an increase over the previous quarter. A total of 32 buildings with 2,377,125 square feet of space delivered to the market, with 11,897,055 square feet still under construction at the end of the quarter. Davenport/Moline/Rock Island With no new office space being delivered to the market, and negative (26,237) square feet of net absorption, Davenport/Moline/Rock Island’s vacancy rate went from 4.5% to 4.8% in the quarter. Rental rates went from $13.38 to $12.56 during that time. At the end of the quarter, there was 126,500 square feet underway for future delivery. Dayton The Dayton office market ended the quarter with a vacancy rate of 12.8%. The vacancy rate was up over the previous quarter, with net absorption totaling negative (92,354) square feet. Vacant sublease space decreased to 99,646 square feet. Rental rates ended the first quarter at $14.43, a decrease over the previous quarter. A total of one building with 5,000 square feet of space delivered to the market, with 6,900 square feet still under construction at the end of the quarter. Deltona/Daytona Beach The vacancy rate remained unchanged in Deltona/ Daytona Beach in the first quarter. With 65,700 square feet in deliveries, and positive 69,994 square feet in net absorption, the vacancy rate held at 4.9%, the same rate reported in the previous quarter. The market had 20,500 square feet under construction at the end of the quarter, and rental rates stood at $12.59 per square foot. Denver The Denver office market ended the quarter with a vacancy rate of 10.1%. The vacancy rate was up over the previous quarter, with net absorption totaling negative (42,246) square feet. Vacant sublease space increased to 1,687,679 square feet. Rental rates ended the first quarter at $25.54, an increase over the previous quarter. A total of 12 buildings with 883,313 square feet of space delivered to the market, with 5,845,847 square feet still under construction at the end of the quarter. 6
Des Moines The Des Moines office market saw vacancies rise and rental rates increase from the fourth quarter 2016 to the first quarter 2017. The overall vacancy rate currently sits at 4.0%, from 3.9% in the previous quarter. Rental rates ended the quarter at $13.96 per square foot, from $13.74 in the previous quarter. There was a total of 179,365 square feet that delivered in the quarter, with 299,458 square feet still under construction at the end of the quarter. Detroit The Detroit office market ended the quarter with a vacancy rate of 11.4%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 441,935 square feet. Vacant sublease space increased to 303,509 square feet. Rental rates ended the first quarter at $18.94, a decrease over the previous quarter. A total of four buildings with 325,870 square feet of space delivered to the market, with 922,894 square feet still under construction at the end of the quarter. Duluth With no new office space being delivered to the market, and negative (8,500) square feet of net absorption, Duluth’s vacancy rate went from 2.7% to 2.8% in the quarter. Rental rates went from $13.29 to $13.35 during that time. At the end of the quarter, there was 5,040 square feet underway for future delivery. East Bay/Oakland The vacancy rate remained unchanged in East Bay/ Oakland in the first quarter. With 75,900 square feet in deliveries, and positive 112,555 square feet in net absorption, the vacancy rate held at 7.8%, the same rate reported in the previous quarter. The market had 1,068,798 square feet under construction at the end of the quarter, and rental rates stood at $31.19 per square foot. El Paso The El Paso office market ended the quarter with a vacancy rate of 6.2%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 97,087 square feet. Vacant sublease space decreased to 13,293 square feet. Rental rates ended the first quarter at $15.47, an increase over the previous quarter. A total of one building with 4,375 square feet of space delivered to the market, with 141,581 square feet still under construction at the end of the quarter. Erie
The Erie office market reported no new deliveries and no space under construction at the end of the first quarter 2017. With this limited construction activity, net absorption of positive 832 square feet caused the vacancy rate to unchanged from 3.8%to 3.8% in the quarter. Rental rates stood at $10.86.
CoStar Office Statistics
©2017 CoStar Group, Inc.
First Quarter 2017 – National
National Office Market Overview
Evansville With no new office space being delivered to the market, and negative (15,383) square feet of net absorption, Evansville’s vacancy rate went from 6.1% to 6.2% in the quarter. Rental rates went from $11.33 to $11.04 during that time. At the end of the quarter, there was 86,700 square feet underway for future delivery. Fayetteville The Fayetteville office market saw vacancies fall and rental rates increase from the fourth quarter 2016 to the first quarter 2017. The overall vacancy rate currently sits at 6.7%, from 6.8% in the previous quarter. Rental rates ended the quarter at $15.73 per square foot, from $15.64 in the previous quarter. There was a total of 19,038 square feet that delivered in the quarter, with 30,520 square feet still under construction at the end of the quarter.
Green Bay The Green Bay office market saw vacancies rise and rental rates decrease from the fourth quarter 2016 to the first quarter 2017. The overall vacancy rate currently sits at 7.7%, from 7.4% in the previous quarter. Rental rates ended the quarter at $12.20 per square foot, from $12.25 in the previous quarter. There was a total of 10,096 square feet that delivered in the quarter, with 98,907 square feet still under construction at the end of the quarter. Greensboro/Winston-Salem With no new office space being delivered to the market, and negative (156,658) square feet of net absorption, Greensboro/Winston-Salem’s vacancy rate went from 9.3% to 9.6% in the quarter. Rental rates went from $15.24 to $15.37 during that time. At the end of the quarter, there was 14,500 square feet underway for future delivery.
Fayetteville/Springdale/Rogers The Fayetteville/Springdale/Roge office market ended the quarter with a vacancy rate of 6.8%. The vacancy rate was up over the previous quarter, with net absorption totaling negative (62,858) square feet. Vacant sublease space stayed the same at 13,361 square feet. Rental rates ended the first quarter at $16.27, a decrease over the previous quarter. A total of two buildings with 14,576 square feet of space delivered to the market, with 342,174 square feet still under construction at the end of the quarter.
Greenville/Spartanburg The Greenville/Spartanburg office market ended the quarter with a vacancy rate of 8.2%. The vacancy rate was up over the previous quarter, with net absorption totaling negative (45,519) square feet. Vacant sublease space increased to 259,650 square feet. Rental rates ended the first quarter at $16.13, a decrease over the previous quarter. A total of two buildings with 45,000 square feet of space delivered to the market, with 91,913 square feet still under construction at the end of the quarter.
Fort Smith With no space currently under construction, Fort Smith absorbed (12,012) square feet of space and delivered 3,000 square feet of space, resulting in a vacancy rate that went from 3.5% to 3.8% over the course of the quarter. Rental rates went from $10.75 to $10.10 per square foot.
Hampton Roads The vacancy rate remained unchanged in Hampton Roads in the first quarter. With 42,100 square feet in deliveries, and positive 9,043 square feet in net absorption, the vacancy rate held at 10.8%, the same rate reported in the previous quarter. The market had 221,151 square feet under construction at the end of the quarter, and rental rates stood at $16.95 per square foot.
Fort Wayne The Fort Wayne office market ended the quarter with a vacancy rate of 5.8%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 23,993 square feet. Vacant sublease space decreased to 500 square feet. Rental rates ended the first quarter at $13.66, an increase over the previous quarter. A total of one building with 6,000 square feet of space delivered to the market, with 26,171 square feet still under construction at the end of the quarter. Fresno With no new office space being delivered to the market, and positive 20,957 square feet of net absorption, Fresno’s vacancy rate went from 9.0% to 9.0% in the quarter. Rental rates went from $16.46 to $16.16 during that time. At the end of the quarter, there was 187,629 square feet underway for future delivery.
©2017 CoStar Group, Inc.
Hartford The Hartford office market saw vacancies rise and rental rates increase from the fourth quarter 2016 to the first quarter 2017. The overall vacancy rate currently sits at 8.6%, from 7.7% in the previous quarter. Rental rates ended the quarter at $18.97 per square foot, from $18.78 in the previous quarter. There was a total of 123,000 square feet that delivered in the quarter, with 322,100 square feet still under construction at the end of the quarter. Hawaii The Hawaii office market ended the quarter with a vacancy rate of 5.2%. The vacancy rate was up over the previous quarter, with net absorption totaling negative (27,798) square feet. Vacant sublease space increased to 53,986 square feet. Rental rates ended the first quarter at $29.37, a decrease over
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National � First Quarter 2017
National Office Market Overview
the previous quarter. A total of two buildings with 7,879 square feet of space delivered to the market, with 108,152 square feet still under construction at the end of the quarter. Houston The Houston office market ended the quarter with a vacancy rate of 15.8%. The vacancy rate was up over the previous quarter, with net absorption totaling negative (751,841) square feet. Vacant sublease space decreased to 4,916,344 square feet. Rental rates ended the first quarter at $27.56, an increase over the previous quarter. A total of 19 buildings with 1,921,321 square feet of space delivered to the market, with 2,288,834 square feet still under construction at the end of the quarter. Huntington/Ashland With no space currently under construction, Huntington/ Ashland absorbed (9,142) square feet of space and delivered 12,960 square feet of space, resulting in a vacancy rate that went from 4.5% to 4.7% over the course of the quarter. Rental rates went from $10.92 to $10.62 per square foot. Huntsville With no new office space being delivered to the market, and positive 16,736 square feet of net absorption, Huntsville’s vacancy rate went from 10.1% to 10.0% in the quarter. Rental rates went from $13.92 to $14.51 during that time. At the end of the quarter, there was 143,000 square feet underway for future delivery. Indianapolis The Indianapolis office market ended the quarter with a vacancy rate of 7.7%. The vacancy rate was up over the previous quarter, with net absorption totaling negative (118,413) square feet. Vacant sublease space decreased to 299,396 square feet. Rental rates ended the first quarter at $17.83, an increase over the previous quarter. A total of five buildings with 207,685 square feet of space delivered to the market, with 1,268,741 square feet still under construction at the end of the quarter.
vacancy rate went from 6.2% to 6.5% in the quarter. Rental rates went from $16.27 to $16.30 during that time. At the end of the quarter, there was 48,515 square feet underway for future delivery. Jacksonville (Florida) The vacancy rate remained unchanged in Jacksonville (Florida) in the first quarter. With 79,060 square feet in deliveries, and positive 89,778 square feet in net absorption, the vacancy rate held at 8.7%, the same rate reported in the previous quarter. The market had 318,547 square feet under construction at the end of the quarter, and rental rates stood at $18.59 per square foot. Kansas City The Kansas City office market ended the quarter with a vacancy rate of 8.5%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 622,177 square feet. Vacant sublease space increased to 512,086 square feet. Rental rates ended the first quarter at $18.71, an increase over the previous quarter. A total of six buildings with 315,816 square feet of space delivered to the market, with 809,375 square feet still under construction at the end of the quarter. Killeen/Temple/Fort Hood The Killeen/Temple/Fort Hood office market reported no new deliveries and no space under construction at the end of the first quarter 2017. With this limited construction activity, net absorption of negative (1,187) square feet caused the vacancy rate to up from 6.7%to 6.8% in the quarter. Rental rates stood at $13.12. Kingsport/Bristol/Bristol With no space currently under construction, Kingsport/ Bristol/Bristol absorbed (16,718) square feet of space and delivered 30,000 square feet of space, resulting in a vacancy rate that went from 6.9% to 7.5% over the course of the quarter. Rental rates went from $12.80 to $12.31 per square foot.
Inland Empire (California) The Inland Empire (California) office market saw vacancies fall and rental rates decrease from the fourth quarter 2016 to the first quarter 2017. The overall vacancy rate currently sits at 9.1%, from 9.6% in the previous quarter. Rental rates ended the quarter at $20.51 per square foot, from $20.66 in the previous quarter. There was a total of 4,032 square feet that delivered in the quarter, with 529,060 square feet still under construction at the end of the quarter.
Knoxville The Knoxville office market ended the quarter with a vacancy rate of 5.8%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 195,890 square feet. Vacant sublease space decreased to 60,725 square feet. Rental rates ended the first quarter at $14.52, a decrease over the previous quarter. A total of one building with 52,000 square feet of space delivered to the market, with 22,966 square feet still under construction at the end of the quarter.
Jackson With no new office space being delivered to the market, and negative (73,921) square feet of net absorption, Jackson’s
Lafayette With no new office space being delivered to the market, and positive 7,374 square feet of net absorption, Lafayette’s
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CoStar Office Statistics
©2017 CoStar Group, Inc.
First Quarter 2017 – National
National Office Market Overview
vacancy rate went from 5.5% to 5.4% in the quarter. Rental rates went from $15.01 to $14.96 during that time. At the end of the quarter, there was 21,000 square feet underway for future delivery. Las Vegas The Las Vegas office market ended the quarter with a vacancy rate of 14.6%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 339,805 square feet. Vacant sublease space decreased to 332,490 square feet. Rental rates ended the first quarter at $19.27, a decrease over the previous quarter. A total of three buildings with 93,000 square feet of space delivered to the market, with 700,055 square feet still under construction at the end of the quarter. Lexington/Fayette The Lexington/Fayette office market reported no new deliveries and no space under construction at the end of the first quarter 2017. With this limited construction activity, net absorption of negative (46,592) square feet caused the vacancy rate to up from 8.1%to 8.4% in the quarter. Rental rates stood at $16.05. Lincoln The Lincoln office market ended the quarter with a vacancy rate of 3.6%. The vacancy rate was up over the previous quarter, with net absorption totaling positive 30,964 square feet. Vacant sublease space decreased to 500 square feet. Rental rates ended the first quarter at $13.03, a decrease over the previous quarter. A total of one building with 55,000 square feet of space delivered to the market, with 44,000 square feet still under construction at the end of the quarter. Little Rock/N Little Rock The Little Rock/N Little Rock office market ended the quarter with a vacancy rate of 4.5%. The vacancy rate was up over the previous quarter, with net absorption totaling negative (61,251) square feet. Vacant sublease space increased to 33,564 square feet. Rental rates ended the first quarter at $15.64, an increase over the previous quarter. A total of two buildings with 41,729 square feet of space delivered to the market, with 139,737 square feet still under construction at the end of the quarter. Long Island (New York) The Long Island (New York) office market saw vacancies rise and rental rates decrease from the fourth quarter 2016 to the first quarter 2017. The overall vacancy rate currently sits at 7.1%, from 6.8% in the previous quarter. Rental rates ended the quarter at $28.55 per square foot, from $28.94 in the previous quarter. There was a total of 122,648 square feet that delivered in the quarter, with 4,242,860 square feet still under construction at the end of the quarter.
©2017 CoStar Group, Inc.
Los Angeles The Los Angeles office market ended the quarter with a vacancy rate of 11.0%. The vacancy rate was up over the previous quarter, with net absorption totaling negative (1,397,481) square feet. Vacant sublease space increased to 1,841,022 square feet. Rental rates ended the first quarter at $34.15, an increase over the previous quarter. A total of eight buildings with 1,271,399 square feet of space delivered to the market, with 5,154,313 square feet still under construction at the end of the quarter. Louisville The Louisville office market saw vacancies fall and rental rates increase from the fourth quarter 2016 to the first quarter 2017. The overall vacancy rate currently sits at 7.5%, from 7.9% in the previous quarter. Rental rates ended the quarter at $16.55 per square foot, from $16.47 in the previous quarter. There was a total of 5,035 square feet that delivered in the quarter, with 270,005 square feet still under construction at the end of the quarter. Lubbock With no new office space being delivered to the market, and positive 30,488 square feet of net absorption, Lubbock’s vacancy rate went from 6.0% to 5.7% in the quarter. Rental rates went from $14.07 to $14.62 during that time. At the end of the quarter, there was 56,346 square feet underway for future delivery. Madison The Madison office market saw vacancies fall and rental rates decrease from the fourth quarter 2016 to the first quarter 2017. The overall vacancy rate currently sits at 6.1%, from 6.2% in the previous quarter. Rental rates ended the quarter at $15.91 per square foot, from $15.93 in the previous quarter. There was a total of 20,050 square feet that delivered in the quarter, with 1,507,418 square feet still under construction at the end of the quarter. McAllen/Edinburg/Pharr The McAllen/Edinburg/Pharr office market reported no new deliveries and no space under construction at the end of the first quarter 2017. With this limited construction activity, net absorption of negative (12,953) square feet caused the vacancy rate to up from 4.9%to 5.0% in the quarter. Rental rates stood at $15.78. Memphis The vacancy rate remained unchanged in Memphis in the first quarter. With 948,000 square feet in deliveries, and positive 866,927 square feet in net absorption, the vacancy rate held at 10.4%, the same rate reported in the previous quarter. The market had 283,805 square feet under construction at the end of the quarter, and rental rates stood at $16.57 per square foot.
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National � First Quarter 2017
National Office Market Overview
Miami-Dade County The Miami-Dade County office market ended the quarter with a vacancy rate of 9.1%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 293,605 square feet. Vacant sublease space increased to 209,723 square feet. Rental rates ended the first quarter at $33.73, an increase over the previous quarter. A total of two buildings with 151,614 square feet of space delivered to the market, with 1,882,673 square feet still under construction at the end of the quarter.
Nashville The Nashville office market ended the quarter with a vacancy rate of 5.6%. The vacancy rate was up over the previous quarter, with net absorption totaling negative (551,625) square feet. Vacant sublease space increased to 239,931 square feet. Rental rates ended the first quarter at $25.16, an increase over the previous quarter. A total of three buildings with 401,661 square feet of space delivered to the market, with 2,025,818 square feet still under construction at the end of the quarter.
Milwaukee The Milwaukee office market ended the quarter with a vacancy rate of 7.7%. The vacancy rate was up over the previous quarter, with net absorption totaling negative (43,212) square feet. Vacant sublease space decreased to 42,300 square feet. Rental rates ended the first quarter at $16.16, a decrease over the previous quarter. A total of one building with 5,200 square feet of space delivered to the market, with 2,119,735 square feet still under construction at the end of the quarter.
New Orleans/Metairie/Kenner With no new office space being delivered to the market, and positive 112,297 square feet of net absorption, New Orleans/Metairie/Kenner’s vacancy rate went from 6.8% to 6.5% in the quarter. Rental rates went from $17.08 to $17.25 during that time. At the end of the quarter, there was 107,300 square feet underway for future delivery.
Minneapolis The Minneapolis office market ended the quarter with a vacancy rate of 7.2%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 425,726 square feet. Vacant sublease space decreased to 273,706 square feet. Rental rates ended the first quarter at $19.02, a decrease over the previous quarter. A total of two buildings with 116,400 square feet of space delivered to the market, with 859,345 square feet still under construction at the end of the quarter. Mobile With no new office space being delivered to the market, and negative (14,204) square feet of net absorption, Mobile’s vacancy rate went from 6.7% to 6.7% in the quarter. Rental rates went from $13.23 to $13.67 during that time. At the end of the quarter, there was 57,807 square feet underway for future delivery. Montgomery With no space currently under construction, Montgomery absorbed (199,843) square feet of space and delivered 3,300 square feet of space, resulting in a vacancy rate that went from 6.9% to 8.2% over the course of the quarter. Rental rates went from $13.85 to $13.28 per square foot. Myrtle Beach/Conway With no space currently under construction, Myrtle Beach/Conway absorbed 10,358 square feet of space and delivered 8,330 square feet of space, resulting in a vacancy rate that went from 3.2% to 3.2% over the course of the quarter. Rental rates went from $13.89 to $13.65 per square foot. 10
New York City With no new office space being delivered to the market, and negative (1,652,906) square feet of net absorption, New York City’s vacancy rate went from 8.2% to 8.4% in the quarter. Rental rates went from $65.45 to $65.41 during that time. At the end of the quarter, there was 15,748,666 square feet underway for future delivery. North Bay/Santa Rosa The North Bay/Santa Rosa office market saw vacancies rise and rental rates increase from the fourth quarter 2016 to the first quarter 2017. The overall vacancy rate currently sits at 10.2%, from 10.0% in the previous quarter. Rental rates ended the quarter at $26.37 per square foot, from $26.07 in the previous quarter. There was a total of 2,315 square feet that delivered in the quarter, with 19,000 square feet still under construction at the end of the quarter. Northern New Jersey The vacancy rate remained unchanged in Northern New Jersey in the first quarter. With 604,642 square feet in deliveries, and positive 405,481 square feet in net absorption, the vacancy rate held at 13.4%, the same rate reported in the previous quarter. The market had 2,306,562 square feet under construction at the end of the quarter, and rental rates stood at $25.11 per square foot. Ocala With no space currently under construction, Ocala absorbed 54,823 square feet of space and delivered 6,277 square feet of space, resulting in a vacancy rate that went from 8.1% to 7.1% over the course of the quarter. Rental rates went from $12.99 to $12.25 per square foot. Oklahoma City The Oklahoma City office market ended the quarter with
CoStar Office Statistics
©2017 CoStar Group, Inc.
First Quarter 2017 – National
National Office Market Overview
a vacancy rate of 6.1%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 176,961 square feet. Vacant sublease space decreased to 17,735 square feet. Rental rates ended the first quarter at $16.27, a decrease over the previous quarter. A total of eight buildings with 124,605 square feet of space delivered to the market, with 797,346 square feet still under construction at the end of the quarter. Olympia With no space currently under construction, Olympia absorbed 15,981 square feet of space and delivered 18,300 square feet of space, resulting in a vacancy rate that went from 7.3% to 7.3% over the course of the quarter. Rental rates went from $16.54 to $16.00 per square foot. Omaha/Council Bluffs With no new office space being delivered to the market, and positive 162,521 square feet of net absorption, Omaha/ Council Bluffs’s vacancy rate went from 5.3% to 5.0% in the quarter. Rental rates went from $16.99 to $16.06 during that time. At the end of the quarter, there was 402,944 square feet underway for future delivery. Orange County (California) The Orange County (California) office market ended the quarter with a vacancy rate of 9.1%. The vacancy rate was up over the previous quarter, with net absorption totaling positive 49,390 square feet. Vacant sublease space increased to 622,777 square feet. Rental rates ended the first quarter at $28.84, an increase over the previous quarter. A total of two buildings with 212,100 square feet of space delivered to the market, with 2,226,702 square feet still under construction at the end of the quarter. Orlando The Orlando office market ended the quarter with a vacancy rate of 7.9%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 262,943 square feet. Vacant sublease space decreased to 70,726 square feet. Rental rates ended the first quarter at $19.70, an increase over the previous quarter. A total of 10 buildings with 146,152 square feet of space delivered to the market, with 668,815 square feet still under construction at the end of the quarter. Palm Beach County With no new office space being delivered to the market, and positive 9,542 square feet of net absorption, Palm Beach County’s vacancy rate went from 11.2% to 11.2% in the quarter. Rental rates went from $27.91 to $28.04 during that time. At the end of the quarter, there was 180,883 square feet underway for future delivery.
©2017 CoStar Group, Inc.
Pensacola The Pensacola office market ended the quarter with a vacancy rate of 4.3%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 304,498 square feet. Vacant sublease space stayed the same at 4,894 square feet. Rental rates ended the first quarter at $14.52, an increase over the previous quarter. A total of two buildings with 206,000 square feet of space delivered to the market, with 254,450 square feet still under construction at the end of the quarter. Peoria The Peoria office market reported no new deliveries and no space under construction at the end of the first quarter 2017. With this limited construction activity, net absorption of negative (38,340) square feet caused the vacancy rate to up from 5.2%to 5.5% in the quarter. Rental rates stood at $12.84. Philadelphia The Philadelphia office market ended the quarter with a vacancy rate of 8.7%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 173,096 square feet. Vacant sublease space increased to 1,112,547 square feet. Rental rates ended the first quarter at $22.68, an increase over the previous quarter. A total of six buildings with 214,556 square feet of space delivered to the market, with 4,398,979 square feet still under construction at the end of the quarter. Phoenix The Phoenix office market ended the quarter with a vacancy rate of 15.4%. The vacancy rate was up over the previous quarter, with net absorption totaling positive 595,408 square feet. Vacant sublease space increased to 1,235,864 square feet. Rental rates ended the first quarter at $23.55, an increase over the previous quarter. A total of 11 buildings with 1,245,094 square feet of space delivered to the market, with 764,108 square feet still under construction at the end of the quarter. Pittsburgh The Pittsburgh office market ended the quarter with a vacancy rate of 8.2%. The vacancy rate was up over the previous quarter, with net absorption totaling negative (221,740) square feet. Vacant sublease space decreased to 299,943 square feet. Rental rates ended the first quarter at $20.94, an increase over the previous quarter. A total of three buildings with 158,341 square feet of space delivered to the market, with 716,990 square feet still under construction at the end of the quarter. Port St Lucie/Fort Pierce With no new office space being delivered to the market,
CoStar Office Statistics
11
National � First Quarter 2017
National Office Market Overview
and positive 76,264 square feet of net absorption, Port St Lucie/Fort Pierce’s vacancy rate went from 9.0% to 8.2% in the quarter. Rental rates went from $15.40 to $14.81 during that time. At the end of the quarter, there was 103,224 square feet underway for future delivery. Portland The Portland office market ended the quarter with a vacancy rate of 7.6%. The vacancy rate was up over the previous quarter, with net absorption totaling negative (153,119) square feet. Vacant sublease space increased to 408,582 square feet. Rental rates ended the first quarter at $24.11, an increase over the previous quarter. A total of two buildings with 54,663 square feet of space delivered to the market, with 2,916,680 square feet still under construction at the end of the quarter. Portland/South Portland The Portland/South Portland office market ended the quarter with a vacancy rate of 6.0%. The vacancy rate was up over the previous quarter, with net absorption totaling negative (219,002) square feet. Vacant sublease space decreased to 50,266 square feet. Rental rates ended the first quarter at $14.25, an increase over the previous quarter. A total of one building with 3,087 square feet of space delivered to the market, with 79,000 square feet still under construction at the end of the quarter. Providence The vacancy rate remained unchanged in Providence in the first quarter. With 6,160 square feet in deliveries, and positive 11,006 square feet in net absorption, the vacancy rate held at 6.3%, the same rate reported in the previous quarter. The market had 420,412 square feet under construction at the end of the quarter, and rental rates stood at $17.22 per square foot. Raleigh/Durham The Raleigh/Durham office market ended the quarter with a vacancy rate of 6.1%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 231,394 square feet. Vacant sublease space increased to 215,034 square feet. Rental rates ended the first quarter at $21.32, an increase over the previous quarter. A total of six buildings with 151,648 square feet of space delivered to the market, with 3,069,404 square feet still under construction at the end of the quarter. Reno/Sparks With no new office space being delivered to the market, and positive 127,599 square feet of net absorption, Reno/ Sparks’s vacancy rate went from 11.2% to 10.4% in the quarter. Rental rates went from $17.53 to $17.62 during that time. At the end of the quarter, there was 19,075 square feet underway for future delivery. 12
Richmond VA The Richmond VA office market ended the quarter with a vacancy rate of 8.1%. The vacancy rate was up over the previous quarter, with net absorption totaling negative (26,867) square feet. Vacant sublease space increased to 341,436 square feet. Rental rates ended the first quarter at $17.63, an increase over the previous quarter. A total of one building with 4,650 square feet of space delivered to the market, with 91,804 square feet still under construction at the end of the quarter. Roanoke With no new office space being delivered to the market, and positive 43,246 square feet of net absorption, Roanoke’s vacancy rate went from 10.1% to 9.7% in the quarter. Rental rates went from $14.52 to $15.86 during that time. At the end of the quarter, there was 16,800 square feet underway for future delivery. Rochester With no new office space being delivered to the market, and negative (232,521) square feet of net absorption, Rochester’s vacancy rate went from 8.1% to 8.6% in the quarter. Rental rates went from $12.83 to $12.43 during that time. At the end of the quarter, there was 351,500 square feet underway for future delivery. Sacramento With no new office space being delivered to the market, and negative (138,629) square feet of net absorption, Sacramento’s vacancy rate went from 11.1% to 11.2% in the quarter. Rental rates went from $21.01 to $21.21 during that time. At the end of the quarter, there was 9,798 square feet underway for future delivery. Salinas With no space currently under construction, Salinas absorbed 324,892 square feet of space and delivered 141,226 square feet of space, resulting in a vacancy rate that went from 8.1% to 5.8% over the course of the quarter. Rental rates went from $20.96 to $20.54 per square foot. Salt Lake City The Salt Lake City office market ended the quarter with a vacancy rate of 6.4%. The vacancy rate was up over the previous quarter, with net absorption totaling negative (228,048) square feet. Vacant sublease space decreased to 651,327 square feet. Rental rates ended the first quarter at $20.26, an increase over the previous quarter. A total of eight buildings with 202,551 square feet of space delivered to the market, with 1,473,418 square feet still under construction at the end of the quarter. San Antonio The San Antonio office market ended the quarter with a vacancy rate of 9.4%. The vacancy rate was up over the pre-
CoStar Office Statistics
©2017 CoStar Group, Inc.
First Quarter 2017 – National
National Office Market vious quarter, with net absorption totaling negative (116,958) square feet. Vacant sublease space increased to 155,316 square feet. Rental rates ended the first quarter at $20.40, an increase over the previous quarter. A total of one building with 150,735 square feet of space delivered to the market, with 1,514,380 square feet still under construction at the end of the quarter. San Diego The San Diego office market ended the quarter with a vacancy rate of 9.8%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 372,817 square feet. Vacant sublease space increased to 920,920 square feet. Rental rates ended the first quarter at $31.22, an increase over the previous quarter. A total of two buildings with 14,243 square feet of space delivered to the market, with 868,749 square feet still under construction at the end of the quarter. San Francisco The San Francisco office market ended the quarter with a vacancy rate of 7.1%. The vacancy rate was up over the previous quarter, with net absorption totaling negative (260,335) square feet. Vacant sublease space increased to 1,747,393 square feet. Rental rates ended the first quarter at $57.81, an increase over the previous quarter. A total of two buildings with 305,673 square feet of space delivered to the market, with 8,114,635 square feet still under construction at the end of the quarter. San Luis Obispo/Paso Robles With no new office space being delivered to the market, and positive 5,591 square feet of net absorption, San Luis Obispo/Paso Robles’s vacancy rate went from 1.7% to 1.6% in the quarter. Rental rates went from $20.14 to $19.58 during that time. At the end of the quarter, there was 69,594 square feet underway for future delivery. Santa Barbara/Sta Maria/Gole The Santa Barbara/Sta Maria/Gole office market reported no new deliveries and no space under construction at the end of the first quarter 2017. With this limited construction activity, net absorption of positive 5,407 square feet caused the vacancy rate to down from 2.6%to 2.5% in the quarter. Rental rates stood at $21.04. Santa Cruz/Watsonville The Santa Cruz/Watsonville office market reported no new deliveries and no space under construction at the end of the first quarter 2017. With this limited construction activity, net absorption of negative (90,979) square feet caused the vacancy rate to up from 4.8%to 6.0% in the quarter. Rental rates stood at $22.38.
©2017 CoStar Group, Inc.
Savannah The Savannah office market ended the quarter with a vacancy rate of 5.4%. The vacancy rate was up over the previous quarter, with net absorption totaling negative (12,900) square feet. Vacant sublease space stayed the same at 6,077 square feet. Rental rates ended the first quarter at $17.32, an increase over the previous quarter. A total of one building with 4,653 square feet of space delivered to the market, with 46,004 square feet still under construction at the end of the quarter. Seattle/Puget Sound The vacancy rate remained unchanged in Seattle/Puget Sound in the first quarter. With 78,358 square feet in deliveries, and positive 40,098 square feet in net absorption, the vacancy rate held at 7.7%, the same rate reported in the previous quarter. The market had 8,021,277 square feet under construction at the end of the quarter, and rental rates stood at $30.96 per square foot. Shreveport/Bossier City With no new office space being delivered to the market, and positive 24,325 square feet of net absorption, Shreveport/ Bossier City’s vacancy rate went from 8.0% to 7.8% in the quarter. Rental rates went from $12.95 to $13.09 during that time. At the end of the quarter, there was 27,500 square feet underway for future delivery. South Bay/San Jose The South Bay/San Jose office market ended the quarter with a vacancy rate of 7.6%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 745,860 square feet. Vacant sublease space increased to 1,524,092 square feet. Rental rates ended the first quarter at $40.79, a decrease over the previous quarter. A total of six buildings with 581,966 square feet of space delivered to the market, with 9,920,471 square feet still under construction at the end of the quarter. South Bend/Mishawaka The South Bend/Mishawaka office market ended the quarter with a vacancy rate of 5.6%. The vacancy rate was up over the previous quarter, with net absorption totaling negative (61,781) square feet. Vacant sublease space decreased to 4,110 square feet. Rental rates ended the first quarter at $14.57, an increase over the previous quarter. A total of one building with 15,499 square feet of space delivered to the market, with 45,000 square feet still under construction at the end of the quarter. Southwest Florida The Southwest Florida office market saw vacancies fall and rental rates decrease from the fourth quarter 2016 to the first quarter 2017. The overall vacancy rate currently sits at
CoStar Office Statistics
13
National � First Quarter 2017
National Office Market 7.6%, from 8.0% in the previous quarter. Rental rates ended the quarter at $15.25 per square foot, from $15.98 in the previous quarter. There was a total of 80,841 square feet that delivered in the quarter, with 149,426 square feet still under construction at the end of the quarter. Spokane With no new office space being delivered to the market, and positive 54,331 square feet of net absorption, Spokane’s vacancy rate went from 9.4% to 9.2% in the quarter. Rental rates went from $15.32 to $15.94 during that time. At the end of the quarter, there was 16,000 square feet underway for future delivery. Springfield With no new office space being delivered to the market, and negative (11,770) square feet of net absorption, Springfield’s vacancy rate went from 6.5% to 6.6% in the quarter. Rental rates went from $13.00 to $13.14 during that time. At the end of the quarter, there was 101,211 square feet underway for future delivery. St. Louis The vacancy rate remained unchanged in St. Louis in the first quarter. With 122,800 square feet in deliveries, and positive 202,485 square feet in net absorption, the vacancy rate held at 8.1%, the same rate reported in the previous quarter. The market had 718,581 square feet under construction at the end of the quarter, and rental rates stood at $18.34 per square foot.
Tampa/St Petersburg The Tampa/St Petersburg office market ended the quarter with a vacancy rate of 7.6%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 338,579 square feet. Vacant sublease space increased to 458,747 square feet. Rental rates ended the first quarter at $20.34, an increase over the previous quarter. A total of five buildings with 28,415 square feet of space delivered to the market, with 347,632 square feet still under construction at the end of the quarter. Toledo With no new office space being delivered to the market, and negative (129,561) square feet of net absorption, Toledo’s vacancy rate went from 8.4% to 8.8% in the quarter. Rental rates went from $13.48 to $13.39 during that time. At the end of the quarter, there was 16,926 square feet underway for future delivery. Tucson With no new office space being delivered to the market, and positive 56,438 square feet of net absorption, Tucson’s vacancy rate went from 11.1% to 10.9% in the quarter. Rental rates went from $18.64 to $18.91 during that time. At the end of the quarter, there was 88,631 square feet underway for future delivery.
Stockton/Modesto With no new office space being delivered to the market, and positive 129,203 square feet of net absorption, Stockton/ Modesto’s vacancy rate went from 7.4% to 6.8% in the quarter. Rental rates went from $15.11 to $15.13 during that time. At the end of the quarter, there was 306,000 square feet underway for future delivery.
Tulsa The Tulsa office market ended the quarter with a vacancy rate of 9.6%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 122,629 square feet. Vacant sublease space increased to 72,878 square feet. Rental rates ended the first quarter at $14.85, an increase over the previous quarter. A total of six buildings with 29,258 square feet of space delivered to the market, with 149,987 square feet still under construction at the end of the quarter.
Syracuse With no new office space being delivered to the market, and negative (286,204) square feet of net absorption, Syracuse’s vacancy rate went from 8.8% to 9.6% in the quarter. Rental rates went from $13.76 to $14.05 during that time. At the end of the quarter, there was 68,500 square feet underway for future delivery.
Utica/Rome The Utica/Rome office market reported no new deliveries and no space under construction at the end of the first quarter 2017. With this limited construction activity, net absorption of positive 50,173 square feet caused the vacancy rate to down from 4.4%to 3.8% in the quarter. Rental rates stood at $10.52.
Tallahassee The Tallahassee office market ended the quarter with a vacancy rate of 4.6%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 145,177 square feet. Vacant sublease space increased to 47,400 square feet. Rental rates ended the first quarter at $15.25, a decrease over the previous quarter. A total of two buildings with 56,000 square feet of space delivered to the market, with 87,015 square feet still under construction at the end of the quarter.
Visalia/Porterville With no new office space being delivered to the market, and positive 54,155 square feet of net absorption, Visalia/ Porterville’s vacancy rate went from 5.0% to 4.1% in the quarter. Rental rates went from $14.17 to $14.49 during that time. At the end of the quarter, there was 6,144 square feet underway for future delivery.
14
Washington The Washington office market ended the quarter with
CoStar Office Statistics
©2017 CoStar Group, Inc.
First Quarter 2017 – National
National Office Market a vacancy rate of 14.0%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 2,754,849 square feet. Vacant sublease space increased to 3,112,317 square feet. Rental rates ended the first quarter at $35.30, an increase over the previous quarter. A total of four buildings with 686,172 square feet of space delivered to the market, with 11,021,323 square feet still under construction at the end of the quarter. West Michigan The West Michigan office market saw vacancies fall and rental rates increase from the fourth quarter 2016 to the first quarter 2017. The overall vacancy rate currently sits at 6.0%, from 6.4% in the previous quarter. Rental rates ended the quarter at $12.73 per square foot, from $12.43 in the previous quarter. There was a total of 35,000 square feet that delivered in the quarter, with 910,250 square feet still under construction at the end of the quarter. Westchester/So Connecticut The Westchester/So Connecticut office market saw vacancies rise and rental rates increase from the fourth quarter 2016 to the first quarter 2017. The overall vacancy rate currently sits at 12.3%, from 12.2% in the previous quarter. Rental rates ended the quarter at $28.71 per square foot, from $28.57 in the previous quarter. There was a total of 11,500 square feet that delivered in the quarter, with 1,091,159 square feet still under construction at the end of the quarter.
©2017 CoStar Group, Inc.
Wichita With no space currently under construction, Wichita absorbed (1,287) square feet of space and delivered 8,400 square feet of space, resulting in a vacancy rate that went from 6.7% to 6.7% over the course of the quarter. Rental rates went from $13.06 to $13.02 per square foot. Wilmington With no new office space being delivered to the market, and positive 54,530 square feet of net absorption, Wilmington’s vacancy rate went from 5.3% to 4.9% in the quarter. Rental rates went from $16.39 to $16.77 during that time. At the end of the quarter, there was 261,011 square feet underway for future delivery. Yakima The Yakima office market reported no new deliveries and no space under construction at the end of the first quarter 2017. With this limited construction activity, net absorption of negative (18,844) square feet caused the vacancy rate to up from 7.4%to 7.9% in the quarter. Rental rates stood at $11.04. Youngstown/Warren/Boardman With no new office space being delivered to the market, and negative (36,093) square feet of net absorption, Youngstown/Warren/Boardman’s vacancy rate went from 5.1% to 5.4% in the quarter. Rental rates went from $10.05 to $9.93 during that time. At the end of the quarter, there was 74,984 square feet underway for future delivery.
CoStar Office Statistics
15
National � First Quarter 2017
National Office Market Inventory & development
Historical Deliveries
1983 - 2018
Deliveries
Average Delivered SF
400.0 345.8 325.2
350.0 300.0
295.9
Millions SF
254.2 250.0
262.5
249.7 228.4 207.9
241.6 222.5 206.5
200.0
167.3
150.0
125.2 102.7
117.8
171.2 166.4 153.9 139.7 129.9 125.9 124.9
167.6
82.890.6 60.363.4
100.0
63.8
50.0
86.882.7 67.5 55.3 41.949.2 21.3 0.0
0.0 1983 Source: CoStar Property®
1987
1991
1995
1999
2003
2007
2011
2015
* Future deliveries based on current under construction buildings.
Construction Activity Markets Ranked by Under Construction Square Footage Market New York City Dallas/Ft Worth Washington South Bay/San Jose San Francisco Seattle/Pu get Sound Denver Atlanta Los Angeles Philadelphia Long Island (New York) Boston Chicago Austin Raleigh/Durham Portland Northern New Jerse y Houston Orange County (California) Milwaukee Nashville Charlotte Miami-Dade Count y Baltimore San Antonio Madison Salt Lake City Columbus Indianapolis Westchester/So Connecticut East Bay/Oakland Detroit West Michi gan San Diego Minneapolis Kansas City Oklahoma Cit y Phoenix Cincinnati St. Louis Pittsburgh Las Vegas Orlando Cleveland Totals
# Bldgs 30 133 47 36 24 29 50 55 63 40 50 28 33 51 31 19 37 42 13 16 21 18 33 16 23 14 19 17 18 10 5 16 13 13 18 13 9 16 8 9 17 15 22 16 1,580
Under Construction Inventory Total RBA Preleased SF 15,748,666 9,721,338 11,897,055 7,969,390 11,021,323 6,394,695 9,920,471 7,067,068 8,114,635 2,985,560 8,021,277 5,068,313 5,845,847 2,853,908 5,578,371 3,128,027 5,154,313 1,915,951 4,398,979 3,758,187 4,242,860 1,687,226 4,155,500 1,456,490 4,079,157 2,699,945 3,842,183 2,409,303 3,069,404 1,664,310 2,916,680 1,882,348 2,306,562 1,181,770 2,288,834 1,075,801 2,226,702 1,185,495 2,119,735 2,087,085 2,025,818 1,019,129 1,907,798 1,129,956 1,882,673 1,034,834 1,526,870 766,118 1,514,380 846,633 1,507,418 1,386,518 1,473,418 652,057 1,349,062 1,205,027 1,268,741 846,990 1,091,159 275,249 1,068,798 797,908 922,894 783,853 910,250 794,094 868,749 313,411 859,345 641,747 809,375 521,505 797,346 712,463 764,108 440,954 733,854 410,004 718,581 526,374 716,990 474,410 700,055 514,911 668,815 311,982 637,852 349,754 154,430,090 92,370,204
Preleased % 61.7% 67.0% 58.0% 71.2% 36.8% 63.2% 48.8% 56.1% 37.2% 85.4% 39.8% 35.0% 66.2% 62.7% 54.2% 64.5% 51.2% 47.0% 53.2% 98.5% 50.3% 59.2% 55.0% 50.2% 55.9% 92.0% 44.3% 89.3% 66.8% 25.2% 74.7% 84.9% 87.2% 36.1% 74.7% 64.4% 89.4% 57.7% 55.9% 73.3% 66.2% 73.6% 46.6% 54.8% 59.8%
Average Bldg Size All Existing U/C 147,393 524,956 29,656 89,452 46,796 234,496 25,521 275,569 43,417 338,110 25,091 276,596 26,064 116,917 19,088 101,425 23,907 81,814 17,940 109,974 17,601 84,857 29,051 148,411 34,511 123,611 20,840 75,337 20,361 99,013 18,792 153,509 21,224 62,340 42,508 54,496 25,389 171,285 21,653 132,483 18,228 96,468 18,558 105,989 23,479 57,051 21,863 95,429 19,926 65,843 23,216 107,673 20,905 77,548 22,819 79,357 18,520 70,486 22,363 109,116 20,930 213,760 20,884 57,681 12,925 70,019 21,394 66,827 31,434 47,741 26,306 62,260 13,377 88,594 20,860 47,757 18,872 91,732 23,620 79,842 18,602 42,176 16,105 46,670 12,580 30,401 20,155 39,866 20,587 97,741
Source: CoStar Property®
16
CoStar Office Statistics
©2017 CoStar Group, Inc.
First Quarter 2017 – National
National Office Market Inventory & development
Historical Construction Starts & Deliveries* Square Footage Per Quarter Starting and Completing Construction Construction Starts
Deliveries
30.0 25.7 24.2
25.0
Millions SF
20.0 16.9
16.9
18.2 16.5
15.2 15.0
12.3
12.2 10.6
11.8
11.6
22.5
21.7
21.1
14.8
19.2
18.8
18.0
16.8 16.7
16.4 15.3
18.8
16.0
15.6
16.9 16.5 14.7
13.1
12.0 10.5
10.6
10.0 7.0 5.0
0.0 2013 1q
2014 1q
2015 1q
2016 1q
2017 1q
Source: CoStar Property® * Select markets included in this historical chart - see Methodology page.
Recent Deliveries by Project Size Building Size
# Bldgs
RBA
Breakdown of Year-to-Date Development Based on RBA of Project % Leased
SF Leased
Avg Rate
Single Tenant
Multi-Tenant
249
3,212,923
2,008,791
62.5%
$27.89
438,223
2,774,700
50,000 SF - 99,999 SF
29
2,093,050
1,272,060
60.8%
$36.13
667,700
1,425,350
100,000 SF - 249,999 SF
40
6,330,570
4,170,316
65.9%
$40.70
1,409,126
4,921,444
250,000 SF - 499,999 SF
16
5,289,136
3,564,939
67.4%
$41.75
1,510,183
3,778,953
5
4,366,062
3,546,373
81.2%
$53.11
< 50,000 SF
>= 500,000 SF
1,405,000
2,961,062
Source: CoStar Property®
Recent Deliveries
Future Deliveries
Leased & Un-Leased SF in Deliveries Last 5 Years
Preleased & Un-Leased SF in Properties Scheduled to Deliver
Leased
Un-Leased
100.0
40.0
90.0
35.0
80.0
Preleased
Un-Leased
30.0 Millions SF
Millions SF
70.0 60.0 50.0 40.0 30.0
25.0 20.0 15.0 10.0
20.0 5.0
10.0 0.0
0.0 2013
©2017 CoStar Group, Inc.
2014
2015
2016
2017 2q
2017
CoStar Office Statistics
2017 3q
2017 4q
2018 1q
17
National � First Quarter 2017
National Office Market Inventory & development
������������������������������
�������������������������������
���� ������������������ �������� ������� ����� ��������� ���������� �� ������� � ���������� ��� ������������� ���������� ��������������� ������������������ ������������ ������������������ ������������ ���� ����������� ����������������������� ����������� ����������� ����������������������� �
���� ����������������� �������� ������� ����� ��������� ���������� �� ������� � ���������� ��� ������������� ������ ��������������� ������������������ ������������ ������������������ ������������ ������������������������ ����������� ���������������������� ����������� �������������������������� �
���� ������������������� �������� ������ ����� ������� ���������� �� ������� � ���������� ���� ������������� ��� ��������������� ������������������ ������������ ������������������ ������������ ������������������� ����������� ��� ����������� ��� �
���� ������������������������ �������� ������� ����� ������� ���������� � ������� � ���������� ��� ������������� ���������� ��������������� ������������������ ������������ ������������������ ������������ ������������������� ��������������� ����������� �������������������������� ��� ����������� ������������������ ������������
���� ������������������� �������� ������������������� ����� ������� ���������� � ������� � ���������� ���� ������������� ��� ��������������� ������������������� ������������ ������������������ ������������ ��������������������� ������� ����������� ������������ ������� ����������� �
���� �������������������� �������� ������� ����� ������� ���������� �� ������� � ���������� ���� ������������� ��� ��������������� ������������������ ������������ ������������������ ������������ ���������������� ����������� ����������������������� ����������� ���������������������� �
���� ���������������� �������� �������������� ����� ������� ���������� � ������� � ���������� ���� ������������� ��� ��������������� ������������������� ������������ ������������������ ������������ ������������������������ ����������� ��� ����������� ��� �
���� ���������������� �������� ������� ����� ������� ���������� �� ������� � ���������� ��� ������������� ������ ��������������� ������������������ ������������ ������������������ ������������ ������������������ ����������� ���������������������� ����������� �������������������������� �
���� �������������� �������� ����� ���������� ������� ���������� ������������� ��������������� ������������ ������������ ����������� ����������� �
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����� ������� �������� ����� ���������� ������� ���������� ������������� ��������������� ������������ ������������ ����������� ����������� �
����� �������������������������� �������� ������� ����� ������� ���������� � ������� � ���������� ���� ������������� ��� ��������������� ������������������ ������������ ������������������ ������������ ������������������������ ����������� ������������������������ ����������� ��� �
����������� �
��������� ������� �� � ��� ������ ������������������ ������������������ ���������������� ��������������������������� ��� ��������������������������� ���
����� ����������������� �������� ��������������� ����� ������� ���������� � ������� � ���������� ���� ������������� ��� ��������������� ������������������� ������������ ������������������ ������������ ������������������� ����������� ������������������� ����������� ��� �
���������� ������� �� � ���� ��� ������������������� ������������������ ���������������������� ���������������������� �����������������������
���������������������������������� �������� ����������� ����� ������� ���������� �� ������� � ���������� ���� ������������� ��� ��������������� ������������������ ������������ ������������������ ������������ ���� ����������� ��� ����������� ���������������������������� ������� �
����� �������������� �������� ����� ���������� ������� ���������� ������������� ��������������� ������������ ������������ ����������� ����������� �
��������������� ������� � � ��� ������ ������������������� ������������������ ���� ������������������������� ���
��������������� ������� �� � ��� ������ ������������������ ������������������ ����������������� ����������������� �������������������������
������������������������
18
CoStar Office Statistics
©2017 CoStar Group, Inc.
First Quarter 2017 – National
National Office Market Inventory & development
����������������������������������������
�������������������������������
���� �������������������� �������� ������������� ����� ��������� ���������� �� ������� � ����������� ��� ������������� ���������� ��������������� ������������������ ������������ ������������������ ������������ ���������������������������� ����������� ���������������������������� ����������� ������������������������� �������� �
���� ���������� �������� ����� ���������� ������� ����������� ������������� ��������������� ������������ ������������ ����������� ����������� �
���� ���������������� �������� ������������� ����� ��������� ���������� �� ������� � ����������� ��� ������������� ���������� ��������������� ������������������� ������������ ������������������ ������������ ������������������ ����������� ���������������������������� ���� ����������� ���������������������������� ��� �
���� ������������������ �������� ������������� ����� ��������� ���������� �� ������� � ����������� �� ������������� ������ ��������������� ������������������� ������������ ������������������� ������������ ������������ ����������� �������������������� ����������� �������� �
���� �������������� �������� ����� ���������� ������� ����������� ������������� ��������������� ������������ ������������ ����������� �����������
���� ��������������� �������� ������������� ����� ��������� ���������� �� ������� � ����������� ���� ������������� ��� ��������������� ������������������� ������������ ������������������ ������������ ��������������������� ����������� ��������������������� ����������� �������������������������� ��������� �
���� ���������������� �������� ������������� ����� ��������� ���������� �� ������� � ����������� ��� ������������� ���������� ��������������� ������������������ ������������ ������������������� ������������ ���� ����������� ����� ����������� ����������������������������� �
���� ����������������������������� �������� ��������������� ����� ��������� ���������� � ������� � ����������� ���� ������������� ��� ��������������� ������������������� ������������ ������������������ ������������ �������������������� ����������� ����������������������� ������ ����������� ��������� �
����� ������������������������� �������� ������������ ����� ��������� ���������� �� ������� � ����������� ���� ������������� ��� ��������������� ������������������� ������������ ������������������ ������������ ���������������������� ����������� ���������������������� ����������� ����������������� �
����� ������������������ �������� ������������� ����� ��������� ���������� �� ������� � ����������� ��� ������������� ���������� ��������������� ������������������ ������������ ������������������� ������������ ������������������ ����������� ��������������������������� ����������� ����������������� �
����� ��������������������� �������� ��������������� ����� ��������� ���������� �� ������� � ����������� ���� ������������� ��� ��������������� ������������������ ������������ ������������������� ������������ ����������������������� ������ ����������� ����������������������� ������ ����������� �������� �
����� ������������������������������������� �������� ��������� ����� ��������� ���������� �� ������� � ����������� ���� ������������� ��� ��������������� ������������������ ������������ ������������������� ������������ ������������������������� ��������� ����������� ������������������������ �������������������������� ����������� �
������������� �������� ����� ���������� ������� ����������� ������������� ��������������� ������������ ������������ ����������� ����������� �
����� ��������� �������� ����� ���������� ������� ����������� ������������� ��������������� ������������ ������������ ����������� ����������� �
������������������ ��������� � � ���� ��� ������������������ ������������������� ����������� ��� �����������������
������������������� ��������� �� � ���� ��� ������������������� ������������������ ��� ������������������������ ����
���� ��������������� �������� ������������� ����� ��������� ���������� �� ������� � ����������� ���� ������������� ��� ��������������� ������������������� ������������ ������������������ ������������ ��������������������� ����������� ����������������������� ����������� ������������������ ��������������� �
�
������������� ��������� �� � ���� ��� ������������������� ������������������� ��������������������� ��������������������� ������������������ ���������������
������������������� ��������� �� � ���� ��� ������������������� ������������������� ���������������� ������������������������ ����
������������������������
©2017 CoStar Group, Inc.
CoStar Office Statistics
19
National � First Quarter 2017
National Office Market Figures at a Glance
Class A Market Statistics
First Quarter 2017
Existing Inventory Market
# Blds
Vacancy
Total RBA
Direct SF
Albany/Schenect.
32
6,421,701
Albuquerque
27
4,729,029
Anchorage
21
2,929,192
Asheville Atlanta Augusta/Richmon Austin Bakersfield Baltimore Baton Rouge Beaumont/Port A. Birmingham Boise City/Namp. Boston
13 539
843,270 123,943,414
12
912,924
274
36,655,786
Total SF
224,988
Vac %
224,988
3.5%
378,591
378,591
229,463
242,700
28,918 14,671,942 95,581 2,591,677
28,918
Absorption
Deliveries
Const SF
0
40,000
8.0%
55,390
0
43,000
8.3%
(13,392)
0
3.4%
16,009,397
12.9%
95,581
10.5%
3,187,198
8.7%
3,582 (348,204) 1,181 180,107
0 60,000 0 104,747
1,409,910
132,840
146,037
10.4%
3,036
5,664,837
5,877,961
12.2%
315,638
18
3,313,237
408,056
437,831
13.2%
77,045
0
4
747,240
66,426
66,426
8.9%
7,712
0
83
13,026,356
(39,860)
0
25
5,305,261
775
151,740,738
2
108,049 17,027,304
1,911,529 353,916 13,052,703 16,388 2,062,148 9,556
1,968,614 353,916 14,725,681 16,388 2,320,152 9,556
Quoted
3,481
48,060,928
129
15.1% 6.7%
(1,093)
9.7%
474,861
15.2% 13.6%
Brownsville/Har.
2
124,752
Buffalo/Niagara.
70
10,840,591
1,787,444
1,800,951
16.6%
8
921,367
127,026
131,622
14.3%
Charleston/N Ch.
Under
18
Broward County
Charlotte
YTD
396
Bremerton/Silve.
Charleston WV
YTD Net
7.7%
0 313,516 0 49,561 0
80
5,602,024
487,384
495,288
8.8%
(117,230)
255
39,698,172
5,087,667
5,251,333
13.2%
12,491 (8,400)
0 1,115,000 0 400,000 0 0 0 0 611,252
$36.37
0
$23.02
5,218,133 $27.15 9,288
$16.42
3,274,118 $37.50 40,000
$21.11
1,133,042 $26.54 86,000 0 370,440 0
$21.49 $18.07 $21.52 $22.06
3,990,510 $26.45 0
$24.00
233,499 $30.72 0 40,000 0
$20.76 $19.11 $19.32
410,013 $30.41 1,817,611 $26.99
21
2,774,107
222,252
270,240
629
180,924,902
27,981,930
29,759,760
16.4%
Cincinnati
184
29,975,474
3,850,794
3,926,811
13.1%
(161,193)
0
441,000
Cleveland
154
26,886,889
2,349,402
2,389,160
8.9%
101,554
0
428,502 $22.40
1,854,635
0
$19.48
0
Chicago
Chattanooga
9.7%
0 285,499
Rates $20.06
1,819,604
0
$20.80
3,346,661 $26.98 $19.59
Colorado Spring.
48
5,427,406
454,439
461,195
8.5%
9,737
0
0
$20.80
Columbia
28
3,297,477
280,839
293,848
8.9%
103,158
0
0
$20.78
Columbus
174
28,088,340
2,379,047
2,575,843
9.2%
103,483
0
Columbus GA
10
758,917
15,457
15,457
2.0%
(10,365)
0
0
$12.00
Corpus Christi
3
938,444
104,742
104,742
11.2%
8,076
0
0
$23.33
23,734,763
25,218,367
17.0%
Dallas/Ft Worth Davenport/Molin. Dayton Deltona/Daytona. Denver Des Moines Detroit Duluth East Bay/Oaklan.
577
148,626,206
5
259,084
43,923
43,923
17.0%
59
5,923,498
739,784
778,530
13.1%
5
443,784
41,792
41,792
363
66,330,681
7,564,246
8,714,424
55 221
12,156,970 48,368,636
9.4% 13.1%
1,540,724 0 (6,844) 0
0
3.6%
138,586
11.9%
(145,443)
10
1,136,362
68,862
6.1%
(45,941)
118
28,603,096
1,910,326
2,070,332
7.2%
203,766 (16,087)
126,500
$20.51 $17.70
0
0
$15.66
165,000
442,907 5,742,261
10,565,562 $28.12 0
707,355
420,440
$19.49
0
(502,562)
5,600,878 68,862
2,097,552
997,900
0 0 70,700
4,935,122 $29.43 160,000
$16.61
335,784
$21.62
0
$17.63
669,998 $40.36
El Paso
5
1,199,826
110,201
110,201
9.2%
Erie
3
345,764
2,946
2,946
0.9%
Evansville
15
2,127,239
144,283
144,283
6.8%
25,152
0
Fayetteville
11
742,416
37,394
37,394
5.0%
1,000
0
25
2,080,212
240,264
243,561
11.7%
616
0
0.0%
0
0
0
$0.00
0
0
$15.39
0
$22.50
Fayetteville/Sp. Fort Smith
0
0
0
0
Fort Wayne
17
1,744,649
127,114
127,114
Fresno
23
2,486,408
300,117
Green Bay
13
38,639
1,291,423
0
0
0
$13.31
0
0
$20.94
7.3%
10,051
319,295
12.8%
(25,724)
0
38,639
3.0%
(10,321)
0
82,500 0 313,000
55,082
$11.94 $19.50 $21.59
$14.79
Source: CoStar Property®
20
CoStar Office Statistics
©2017 CoStar Group, Inc.
First Quarter 2017 – National
National Office Market Figures at a Glance
Class A Market Statistics
First Quarter 2017
Existing Inventory Market
# Blds
Greensboro/Wins.
69
Total RBA 8,667,153
Vacancy Direct SF
Total SF
1,513,129
Vac %
1,601,136
18.5%
YTD Net
YTD
Under
Absorption
Deliveries
Const SF
Quoted Rates
(130,640)
0
0
$18.96
Greenville/Spar.
73
6,947,318
613,625
697,317
10.0%
49,995
0
0
$23.20
Hampton Roads
141
13,419,075
1,481,714
1,567,189
11.7%
(37,305)
0
0
$20.95
Hartford
75
19,844,541
2,582,463
2,634,339
13.3%
Hawaii
48
10,219,424
851,586
882,031
474
141,608,892
Houston
22,223,012
26,414,987
(407,655)
0
8.6%
17,659
0
18.7%
(175,713)
1,674,831
128,000 $22.45 78,500
$33.13
1,765,926 $33.14
7
497,912
33,485
33,485
6.7%
25,800
0
0
$15.51
Huntsville
27
2,267,486
97,537
97,537
4.3%
65,192
0
0
$22.80
Indianapolis
181
27,434,261
2,766,807
2,909,704
10.6%
(49,437)
Inland Empire (.
98
8,647,112
918,108
984,572
11.4%
(46,713)
0
118,000
$26.11
Jackson
43
4,605,251
483,901
521,408
11.3%
(19,612)
0
41,475
$19.48
Jacksonville (F.
99
17,013,007
1,616,494
1,672,727
9.8%
(56,558)
0
179
31,677,913
3,042,994
3,385,328
10.7%
97,781
Huntington/Ashl.
Kansas City Killeen/Temple/.
2
89,109
0
0
Kingsport/Brist.
4
499,023
5,773
5,773
0.0% 1.2%
0 1,699
Knoxville
38
4,557,277
488,891
522,965
Lafayette
6
387,777
13,810
13,810
Las Vegas
85
10,758,812
1,626,825
1,680,914
15.6%
91,737
Lexington/Fayet.
76
4,676,584
535,986
547,552
11.7%
(91,406)
Lincoln
14
2,510,700
76,253
76,253
3.0%
56,799
184,685
222,463
$0.00
0
$18.82
11.5%
78,591
0
3.6%
22,504
0 76,500 0 55,000
21
2,883,557
142,508
156,730
5.4%
(36,862)
0
45,076,865
3,903,357
4,385,047
9.7%
(442,475)
0
990
182,586,251
24,121,059
25,304,753
13.9%
(942,553)
11,766,857
1,126,501
1,155,462
1,182,641
Louisville
112
9.8%
59,484
0
Lubbock
7
557,814
50,123
50,123
9.0%
(25,226)
0
Madison
66
7,135,227
361,832
370,586
5.2%
(9,074)
0
2
188,913
Memphis
0
0.0%
0
$21.67
0
217
0
564,695
$21.83
0
Little Rock/N L.
McAllen/Edinbur.
0
$20.44
0
Long Island (Ne. Los Angeles
460,000
0
0 21,000
$15.53 $13.98
322,414 $27.81 0 44,000 0
$19.10 $16.49 $18.26
2,667,979 $35.82 3,869,207 $37.87 132,500 $20.23 0 657,000 0
$17.35 $19.19 $19.38
93
12,824,527
973,126
977,830
Miami-Dade Coun
157
27,695,244
3,389,942
3,543,605
Milwaukee
103
16,717,824
1,755,630
1,777,519
10.6%
10,762
Minneapolis
172
54,357,276
4,381,292
4,443,414
8.2%
116,254
Mobile
13
1,536,787
206,627
264,200
17.2%
0
0
0
Montgomery
21
2,978,050
163,160
163,160
5.5%
7
0
0
$19.01
6,735
6,735
1.5%
0
0
0
$20.24
Myrtle Beach/Co. Nashville New Orleans/Met. New York City
6 158
456,337 24,558,951
270,571 $19.76
106,000
1,382,199 $41.09
8.3%
(356,272)
0 110,000
398,161
12,289,293
1,106,043
1,148,585
9.3%
(15,221)
0
328,101,332
28,330,269
30,917,526
9.4%
(760,882)
0
46
3,723,492
923
160,451,389
Olympia
948,000
35
North Bay/Santa. Ocala
2,028,223
911,970 108,000
468
Northern New Je. Oklahoma City
1,825,355
7.6% 12.8%
2
117,460
45
8,043,745
1,127,417 25,460,665
1,127,417 30.3% 27,921,643
17.4%
20,987
20,987
17.9%
415,712
420,938
5.2%
3
525,759
Omaha/CouncilB.
79
11,423,501
572,253
0
573,622
0
0.0% 5.0%
(3,046) 257,646 0 47,514 0 64,745
0 555,000 0 58,000 0 0
Orange County (.
285
46,111,243
5,564,006
5,870,876
12.7%
84,971
212,100
Orlando
212
26,671,667
2,334,725
2,374,472
8.9%
49,781
70,000
. Palm Beach Coun
134
14,605,899
1,977,821
2,022,210
13.8%
108,990
0
1,875,500 $20.16 607,252
$23.61 $16.77
1,840,535 $29.87 62,400
$19.33
15,360,025 $71.75 0
$30.24
1,073,887 $28.76 0
$9.42
757,716 $21.33 0
$0.00
124,000 $19.99 2,153,954 $33.90 168,000 $24.03 25,550 $33.40
Pensacola
9
423,414
31,833
31,833
7.5%
4,502
0
0
$21.29
Peoria
9
989,081
41,184
41,184
4.2%
(5,017)
0
0
$18.00
Source: CoStar Property®
©2017 CoStar Group, Inc.
CoStar Office Statistics
21
National � First Quarter 2017
National Office Market Figures at a Glance
Class A Market Statistics
First Quarter 2017
Existing Inventory Market
# Blds
Vacancy
Total RBA
Direct SF
Total SF
Vac %
14,370,605
10.8%
YTD Net
YTD
Under
Quoted
Absorption
Deliveries
Const SF
Rates
Philadelphia
979
132,730,554
13,585,998
Phoenix
302
48,800,078
6,699,060
7,150,020
Pittsburgh
220
37,877,198
3,984,082
4,216,800
21
1,220,454
162,419
162,419
13.3%
2,986
0
201
29,755,931
2,495,004
2,787,181
9.4%
(88,576)
0
Portland/South .
28
2,967,273
44,997
62,528
2.1%
26,271
0
Providence
31
6,251,471
745,833
749,922
12.0%
150,675
0
330
35,290,999
2,078,871
2,260,691
6.4%
172,952
Reno/Sparks
21
1,735,029
166,148
167,962
9.7%
28,073
Richmond VA
158
21,064,661
1,691,630
1,978,467
9.4%
88,909
0
290,424
292,408
34.5%
(958)
0
Port St Lucie/F. Portland
Raleigh/Durham
Roanoke Rochester Sacramento Salinas Salt Lake City
7
847,365
(588,125)
60,000
3,766,726 $27.96
14.7%
659,285
806,055
445,973 $28.23
11.1%
(136,449)
104,563
103,287 $25.90
60
7,957,545
1,332,894
1,364,364
17.1%
(92,398)
0
26,213,900
2,923,034
3,032,689
11.6%
(228,047)
0
0 215
0 25,747,963
0
0
1,746,447
0.0%
2,180,325
8.5%
2,113,842
0
13.2%
245,231
3,947,480
11.1%
(26,033)
San Francisco
311
78,632,081
5,350,690
6,475,017
8.2%
(49,038)
1 0
72,200 0
South Bay/San J.
156
30,530,544
0 305,673
513,829 $37.28 7,373,886
0
0
0
0
0.0%
69,406
2,282,041
3,003,528
0
0
$0.00
0
$22.76
9.0%
(11,137)
0
12.9%
(2,138)
0
567,821
554,756
13
1,083,555
107,915
112,025
10.3%
1,824
0
69
3,728,968
477,748
485,872
13.0%
15,832
0
187,800
13.3%
2,182
0
1.0%
450
0
10
1,410,671
181,884
Springfield
10
938,897
9,262
9,262
$0.00
0
Southwest Flori. Spokane
###### $23.40
(2,500)
9.8%
0
36,200
4.4%
South Bend/Mish.
St. Louis
$0.00
0.0%
69,406
$14.17
0
0
5,992,801
538,410
$20.87 $24.58 $25.81
0 0
$22.58
0
0
5,633,137
66,588,256
200,000
0
17,955
5
0
0.0%
17,955
306
Seattle/Puget S.
60,000
0
411,610
Shreveport/Boss.
0
0
10
$21.87
2,645,805 $26.00
924,297 $24.58
2,048,112 3,445,539
Santa Barbara/S.
$21.20
150,735
15,961,715 35,507,775 0
0
999,300 $26.08
120
0
44,000
120,958
276
San Luis Obispo.
0
$14.43
43,165
San Diego
Savannah
0
189
San Antonio
Santa Cruz/Wats.
104,988
60,000
2,408,726 $28.09
6,991,837 $40.76 0
$15.20
8,297,680 $45.53 0 60,000 0 75,000
$18.19 $19.02 $19.07 $19.36
253
41,122,782
2,771,657
3,001,440
7.3%
73,683
0
697,304
$21.77
Stockton/Modest.
19
1,961,813
204,160
204,160
10.4%
11,449
0
306,000
$23.24
Syracuse
20
3,224,851
296,275
345,012
10.7%
(21,821)
0
Tallahassee
14
1,351,092
33,754
33,754
2.5%
3,065
0
70,240
$25.83
62,000
$26.29
Tampa/St Peters.
227
34,107,131
2,394,860
2,575,080
7.5%
124,482
0
Toledo
15
3,157,341
258,226
258,226
8.2%
(602)
0
Tucson
22
2,719,477
291,727
296,543
10.9%
(22,855)
0
Tulsa
709,130
709,130
8.5%
(10,563)
27
8,300,000
Utica/Rome
1
122,760
Visalia/Porterv.
0
Washington
1,366
0 259,008,539
0
0
$18.30
0
0
0
$0.00
0
0
0.0%
0
0
0
$0.00
39,191,870
41,386,519 289,786
16.0%
8,923,176
289,786 10,282,980
Wichita
12
1,789,833
103,325
103,325
5.8%
Wilmington
18
1,232,632
158,600
158,600
12.9%
10,617,085
678,273
3.2%
33,383
0
(194,468)
0
Yakima
1
129,857
20,150
20,150
15.5%
7
445,329
49,857
49,857
11.2%
393,143,396
1,405,175
16.1%
Youngstown/Warr
3,445,828,065
$18.16 $23.31
0.0%
65,940,512
18,233
67,000
0
84
Totals
0
$15.87
0
412
West Michigan Westchester/So .
0
424,298,759 12.3%
1,170
0
12,907
0
0 2,709 5,064,167
10,515,569 $39.03 0
$19.56
921,000 $33.82 0
$13.86
171,937 $23.42
0
0
$0.00
0
0
$8.93
16,176,091
123,553,146
$30.71
Source: CoStar Property®
22
CoStar Office Statistics
©2017 CoStar Group, Inc.
First Quarter 2017 – National
National Office Market Figures at a Glance
Class B Market Statistics
First Quarter 2017
Existing Inventory Market
# Blds
Total RBA
Vacancy Direct SF
Total SF
Albany/Schenect.
1,702
42,309,686
2,160,650
2,174,819
Albuquerque
1,630
24,863,858
2,209,666
2,258,911
294
8,724,795
486,174
518,091
Anchorage Asheville Atlanta
842 5,806 758
Augusta/Richmon Austin
2,119
Bakersfield Baltimore
8,555,477 127,054,497
193,815 16,255,811
211,310 16,680,449
Vac % 5.1%
YTD Net
YTD
Under
Quoted
Absorption
Deliveries
Const SF
Rates
(11,762)
13,300
9.1%
76,117
98,000
0
$14.30
5.9%
(65,735)
15,000
0
$26.69
2.5%
44,894
8,470
13.1%
336,783
97,044
8,886,821
652,867
653,880
7.4%
38,934
24,000
44,390,477
4,000,824
4,237,957
9.5%
73,647
192,937
506
8,082,315
491,381
501,429
6.2%
(16,475)
2,743
66,787,578
7,188,905
7,327,792
11.0%
318,480
Baton Rouge
597
6,793,561
730,832
730,832
10.8%
38,474
Beaumont/Port A.
134
2,948,566
151,069
151,069
5.1%
28,896
Birmingham
864
22,207,895
2,829,001
2,858,074
12.9%
(69,240)
Boise City/Namp. Boston
0 63,580 62,411 0 55,347
111,621 $14.63
0 360,238 4,000
$15.77 $18.34 $13.66
568,065
$27.44
61,800
$19.06
393,828 $20.88 134,837 $18.44 0 88,500
$16.47 $16.34
1,158
17,742,472
1,446,972
1,483,450
8.4%
(90,538)
6,340
154,340 $16.46
4,564
161,940,649
13,246,139
13,957,352
8.6%
630,319
60,027
164,990 $20.55
Bremerton/Silve.
153
2,385,441
266,363
266,363
11.2%
(30,024)
Broward County
1,194
31,849,005
3,383,642
3,454,078
10.8%
189,522
Brownsville/Har.
202
2,560,632
Buffalo/Niagara.
839
20,935,177
Charleston WV
0 178,387
123,514
123,514
4.8%
17,668
7,000
1,377,665
1,388,254
6.6%
(150,533)
24,000
581
9,197,849
746,981
753,466
8.2%
(53,621)
2,400
Charleston/N Ch.
1,337
14,901,693
1,317,194
1,333,656
8.9%
32,140
57,055
Charlotte
2,063
43,410,587
3,323,197
3,467,564
8.0%
71,354
327
9,699,383
409,074
417,674
4.3%
4,435
Chattanooga
0
$18.49
238,988 $23.87 0
$15.66
98,000
$14.48
18,000
$14.67
210,346 $18.96
5,147
90,187
$19.20
10,000
41,000
$15.66 $21.54
Chicago
6,263
211,462,432
24,393,828
25,733,628
12.2%
618,726
4,000
732,496
Cincinnati
1,036
36,181,530
3,655,787
3,731,021
10.3%
(187,692)
50,141
292,854
$15.12
Cleveland
2,221
74,457,565
9,044,487
9,097,387
12.2%
130,554
93,096
209,350
$16.20
2,584,844
2,603,036
943
18,962,034
13.7%
61,299
Columbia
Colorado Spring.
1,496
22,991,805
1,370,311
1,441,143
6.3%
68,181
Columbus
0 2,500
1,172
39,645,370
2,689,319
2,715,754
6.9%
(73,655)
0
Columbus GA
401
5,838,585
455,594
457,173
7.8%
(27,049)
0
Corpus Christi
390
7,083,031
617,143
624,606
8.8%
(58,888)
0
23,155,231
13.9%
(162,822)
Dallas/Ft Worth
5,542
166,517,143
22,385,190
279,573
112,440
$15.12
73,460
$14.96
351,162 $17.68 11,480
$15.57
143,696 $14.34 1,331,493 $21.00
Davenport/Molin.
250
4,599,704
165,366
165,366
3.6%
15,188
0
0
Dayton
487
13,877,579
2,258,451
2,285,521
16.5%
(50,717)
5,000
6,900
$14.81
Deltona/Daytona.
961
7,797,825
378,788
386,649
5.0%
61,086
65,700
20,500
$13.08
9.7%
410,852
175,958
910,725 $22.91
4.3%
27,411
14,365
139,458 $12.90
12.9%
529,535
325,870
1.6%
43,480
Denver
3,936
Des Moines
105,425,777
705
19,065,348
Detroit
3,158
102,875,629
Duluth
75
9,689,522 740,778 13,098,107
3,040,641
48,386
10,211,333 824,761 13,242,557 48,386
0
1,729
54,680,893
5,085,424
5,175,647
9.5%
17,582
5,200
El Paso
530
8,720,378
369,777
382,070
4.4%
76,028
4,375
Erie
367
6,093,355
181,185
181,185
3.0%
10,728
0
Evansville
419
5,892,571
412,095
412,095
7.0%
(66,103)
0
East Bay/Oaklan.
$10.57
587,110
$18.51
5,040
$12.47
398,800
$28.78
141,581 $16.86 0
$10.51
4,200
$10.76
Fayetteville
521
4,447,041
318,852
318,852
7.2%
27,921
19,038
30,520
$15.80
Fayetteville/Sp.
591
9,036,592
542,632
552,696
6.1%
(25,757)
14,576
29,174
$16.10
Fort Smith
304
3,379,200
107,613
107,613
3.2%
Fort Wayne
434
9,323,502
683,509
684,009
7.3%
Fresno
900
13,734,120
1,461,265
1,482,651
10.8%
73,316
Green Bay
578
11,012,548
905,534
905,678
8.2%
(47,960)
722 (1,626)
3,000 6,000 0 10,096
0 26,171
$11.46 $14.10
187,629 $17.34 43,825
$12.25
Source: CoStar Property®
©2017 CoStar Group, Inc.
CoStar Office Statistics
23
National � First Quarter 2017
National Office Market Figures at a Glance
Class B Market Statistics
First Quarter 2017
Existing Inventory Market
# Blds
Greensboro/Wins. 1,087
Total RBA
Vacancy Direct SF
Total SF
28,324,824
2,562,695
2,619,746
Vac %
YTD Net
YTD
Under
Absorption
Deliveries
Const SF
9.2%
39,009
0
Quoted
14,500
Rates $14.83
Greenville/Spar.
1,934
21,088,170
1,675,699
1,838,970
8.7%
(60,963)
45,000
91,913 $15.00
Hampton Roads
1,609
27,328,709
3,144,847
3,217,941
11.8%
102,641
42,100
221,151 $15.77
Hartford
1,449
40,275,294
3,147,417
3,218,058
8.0%
(388,369)
123,000
194,100 $18.08
443
15,920,403
522,430
540,519
3.4%
3,041
124,931,992
Hawaii Houston
18,368,984
19,079,165
149,182
1,966
7,879
29,652
$27.89
522,908
$21.54
15.3%
(527,789)
246,490
149,182
2.7%
(46,190)
12,960
Huntington/Ashl.
597
5,498,284
Huntsville
453
12,567,596
1,182,298
1,226,348
9.8%
(83,475)
Indianapolis
2,509
53,358,469
3,335,907
3,485,966
6.5%
56,915
23,000
808,741 $17.00
Inland Empire (.
3,042
44,479,994
4,032
411,060 $20.59
Jackson
808
4,266,831
4,343,176
9.8%
360,606
13,117,370
831,138
848,643
6.5%
(70,672)
0
0
0 143,000
7,040
$11.46 $15.14
$14.98
Jacksonville (F.
1,783
31,939,017
2,538,636
2,721,601
8.5%
132,310
79,060
318,547 $17.60
Kansas City
1,912
62,392,729
5,037,775
5,205,277
8.3%
528,606
93,353
244,680
145
1,644,353
83,791
96,036
5.8%
(2,332)
Killeen/Temple/.
0
Kingsport/Brist.
199
3,917,639
314,941
314,941
8.0%
24,940
30,000
Knoxville
690
13,350,254
915,006
941,657
7.1%
112,749
52,000
Lafayette Las Vegas
157
3,942,672
227,361
238,262
2,288
43,743,103
6,252,399
6,522,742
6.0% 14.9%
(3,636) 246,350
0 16,500
0 0 22,966 0
$17.88 $12.90 $13.36 $15.00 $15.25
377,641 $17.70
Lexington/Fayet.
556
9,894,455
845,037
851,612
8.6%
50,913
0
0
$14.85
Lincoln
534
11,896,037
446,261
446,761
3.8%
(11,692)
0
0
$12.88
Little Rock/N L.
337
10,846,155
598,297
615,997
5.7%
9,050
41,729
Long Island (Ne.
4,244
89,266,559
6,504,840
6,596,814
7.4%
(15,423)
122,648
Los Angeles
5,762
163,549,779
17,754,809
18,327,111 11.2%
(205,254)
88,758
1,285,106 ######
Louisville
1,224
25,488,169
2,042,103
2,091,778
8.2%
129,333
5,035
137,505 $15.94
Lubbock
242
4,762,239
153,791
157,805
3.3%
79,774
Madison
806
21,225,464
1,290,886
1,371,222
6.5%
41,796
0 20,050
139,737 $16.38 1,574,881
$27.11
56,346
$16.79
850,418
$16.07
374
5,542,583
259,650
259,650
4.7%
(10,532)
0
1,276
28,019,867
3,185,094
3,322,095
11.9%
(65,623)
0
Miami-Dade Coun 1,169
48,367,976
4,588,704
4,638,559
9.6%
138,651
45,614
Milwaukee
1,516
47,290,613
3,499,651
3,516,062
7.4%
(32,486)
5,200
244,235
$15.26
2,097
97,702,318
7,005,404
7,180,886
7.3%
158,550
6,400
252,093
$17.75
1,139
0
57,807
McAllen/Edinbur. Memphis
Minneapolis Mobile
853
9,906,504
559,286
561,886
5.7%
Montgomery
491
7,454,347
780,625
804,780
10.8%
Myrtle Beach/Co.
277
3,210,793
118,937
1,412
35,896,735
1,846,453
700
16,569,982
1,260,215
New York City
1,402
159,449,497
10,267,506
11,781,699
7.4%
North Bay/Santa.
1,301
23,111,179
2,147,167
2,192,261
9.5%
(35,484)
2,315
Northern New Je. 5,309
121,299,055
14,729,483
14,997,846
12.4%
205,887
49,642
Nashville New Orleans/Met.
Ocala Oklahoma City
118,937
(167,789)
$14.41
1,881,058
5.2%
(101,196)
3,500
7.8%
59,461
$17.17
0
388,641
$61.20
19,000
$26.71
1,304,216
144,213
144,213
11.1%
30,170
6,277
33,568,472
2,391,987
2,400,160
7.2%
97,158
66,605 18,300
6,408,339
421,422
433,446
6.8%
33,024
1,371,733
1,405,696
5.4%
103,280
Orange County (.
2,975
85,744,157
6,751,482
7,056,643
8.2%
(49,665)
Orlando
3,031
49,749,590
4,317,193
4,336,680
8.7%
161,808
1,115
28,885,961
3,488,585
3,532,006
12.2%
(28,345)
Pensacola
614
6,672,941
352,932
352,932
5.3%
255,003
Peoria
275
7,013,820
362,778
362,778
5.2%
19,341
$22.41
44,900
140
25,961,165
185,283
0
1,765 433
. Palm Beach Coun
0
1,290,363
830
$13.81 $12.58
8,330
Olympia
500,474 $29.46
0
21,752
Omaha/CouncilB.
$16.32 $16.42
3,300
3.7%
(603,427)
0 13,234
0 0 76,152 0 206,000 0
1,232,675 $21.96 0 39,630 0
$13.82 $16.46 $17.13
278,944
$15.75
72,748
$27.47
500,815 $19.08 155,333 $25.89 254,450 0
$16.41 $13.45
Source: CoStar Property®
24
CoStar Office Statistics
©2017 CoStar Group, Inc.
First Quarter 2017 – National
National Office Market Figures at a Glance
Class B Market Statistics
First Quarter 2017
Existing Inventory Market
# Blds
Total RBA
Vacancy Direct SF
Total SF
Vac %
Philadelphia
8,177
177,726,272
15,399,990
15,644,532
8.8%
Phoenix
4,570
100,558,281
16,000,124
16,764,731
16.7%
Pittsburgh
2,263
60,683,926
4,924,167
4,988,084
8.2%
Port St Lucie/F.
YTD Net
YTD
Under
Quoted
Absorption
Deliveries
Const SF
Rates
655,578
154,556
11,176
439,039
318,135 $22.15
53,778
613,703 $19.86
(226,121)
465
6,009,699
514,894
517,394
8.6%
51,051
43,224
$14.97
1,537
45,925,913
3,696,617
3,806,054
8.3%
(88,034)
54,663
507,954
$23.19
Portland/South .
449
10,554,636
891,672
924,207
8.8%
(310,006)
3,087
35,000
$15.13
Providence
690
19,278,691
1,248,602
1,252,582
6.5%
(50,052)
6,160
420,412
$17.12
3,128,140
3,161,354
6.9%
28,370
46,660
423,599
$17.82
Portland
2,154
Raleigh/Durham
46,076,456
Reno/Sparks
769
10,322,307
11.2%
114,879
Richmond VA
1,270
29,686,065
2,407,974
2,460,945
8.3%
(134,175)
291
6,800,387
674,326
674,326
9.9%
26,247
Roanoke Rochester Sacramento Salinas
1,117,507
1,161,147
0
632,253 $20.38
0
19,075
$18.01
31,804
$16.48
0
16,800
$13.33
4,650
720
24,031,682
1,598,764
1,630,799
6.8%
(59,375)
0
151,500
1,707
46,031,438
5,053,324
5,216,744
11.3%
103,388
0
9,798
261
4,687,169
383,768
385,624
8.2%
327,499
141,226
Salt Lake City
2,763
59,824,468
3,341,736
3,556,872
5.9%
(272,008)
81,593
San Antonio
1,607
43,372,156
3,829,964
3,911,335
9.0%
(208,062)
San Diego
1,925
54,340,365
5,673,909
6,085,221
11.2%
344,672
San Francisco
4,513,034
7.0%
(233,200)
0
740,749
$56.17
51,776
2.6%
(10,071)
0
33,394
$19.46
3,978,112
0 14,243
0
$12.21 $20.69 $21.46
474,118 $18.09 590,083
$18.93
354,920 $29.20
1,451
64,912,058
San Luis Obispo.
173
2,011,282
50,176
Santa Barbara/S.
1,164
10,529,029
249,072
263,508
2.5%
8,501
0
0
$23.08
Santa Cruz/Wats.
413
4,632,742
377,261
380,584
8.2%
(77,148)
0
0
$23.53
Savannah
533
6,100,416
440,150
443,824
7.3%
10,102
4,653 78,358
3,021
98,321,630
7,274,332
7,971,515
8.1%
29,395
Shreveport/Boss.
123
3,811,611
300,579
301,714
7.9%
52,389
South Bay/San J.
1,767
3,944,361
4,674,055
7.4%
224,221
Seattle/Puget S.
211
South Bend/Mish. Southwest Flori.
1,698
63,390,050 3,636,090
0 27,210
46,004
$18.16
1,029,440 $26.70 27,500
$14.57
1,622,791 $39.29
291,132
291,132
8.0%
(56,578)
15,499
45,000
$14.74
20,617,416
1,530,685
1,546,497
7.5%
143,020
80,841
89,426
$14.94
1,601,312
1,620,810
10.0%
36,315
0
16,000
$15.40
470,323
482,908
8.6%
(13,930)
0
Spokane
994
16,251,152
Springfield
425
5,623,686
2,081
59,275,196
5,500,504
5,533,009
9.3%
103,725
659
9,654,469
600,408
607,294
6.3%
63,183
Syracuse
1,087
23,375,419
2,373,211
2,392,155
10.2%
(225,757)
Tallahassee
1,521
814,664
857,445
4.8%
129,618
56,000
16,775
$15.11
6,029,413
6,228,521
9.2%
185,652
28,415
285,632
$19.38 $12.53
St. Louis Stockton/Modest.
Tampa/St Peters. 4,876
18,051,112 67,358,948
122,800 0 0
26,211 $13.55 21,277 0 68,500
$17.26 $14.86 $14.36
Toledo
530
955,599
959,275
8.6%
(74,839)
0
16,926
Tucson
1,271
17,830,947
2,155,542
2,167,680
12.2%
118,076
0
21,631 $18.48
Tulsa
904
30,769,156
3,667,161
3,727,512
12.1%
95,431
Utica/Rome
270
5,702,326
257,292
257,292
4.5%
67,849
0
Visalia/Porterv.
165
1,379,875
83,971
83,971
6.1%
12,753
0
Washington
11,147,481
4,481
174,585,322
21,273,121
22,086,365
West Michigan
2,077
42,180,555
2,864,628
2,919,503
Westchester/So .
2,302
62,671,193
7,664,672
7,755,760
12.7%
29,258
1,401,900
7,899
6.9%
209,110
35,000
12.4%
(147,179)
11,500 8,400
Wichita
672
13,767,500
1,149,084
1,157,033
8.4%
(10,376)
Wilmington
610
7,225,685
349,591
352,975
4.9%
43,875
0
Yakima
422
3,436,888
262,747
262,747
7.6%
(6,392)
0
Youngstown/Warr Totals
442
200,989
6,004,978 4,986,414,574
412,978 467,486,943
412,978 483,958,821
6.9%
(34,326)
9.7%
5,936,261
0 5,115,650
149,987 $14.39 0 6,144
$10.50 $17.27
505,754 $30.66 910,250
$13.37
170,159 $25.32 0 89,074 0 74,984 30,876,944
$13.94 $16.67 $11.55 $10.55 $21.59
Source: CoStar Property®
©2017 CoStar Group, Inc.
CoStar Office Statistics
25
National � First Quarter 2017
National Office Market Figures at a Glance
Class C Market Statistics
First Quarter 2017
Existing Inventory Market
# Blds
Total RBA
Vacancy Direct SF
Total SF
Absorption
Deliveries
Const SF
0
0
Rates
1,361
7,573,439
240,181
240,181
3.2%
29,558
0
0
$12.90
363
2,915,943
174,978
174,978
6.0%
(46,297)
0
0
$22.89
Augusta/Richmon Austin Bakersfield
15,907
Quoted
Albuquerque Asheville
4.3%
Under
16,051,482
Atlanta
683,189
YTD
Albany/Schenect. 2,262 Anchorage
650,618
Vac %
YTD Net
$11.36
440
3,367,871
121,818
121,818
3.6%
(19,802)
0
0
$14.07
9,634
54,007,160
4,153,673
4,181,597
7.7%
(172,848)
0
0
$15.45
936
3,960,760
248,040
248,040
6.3%
(16,871)
0
0
$11.24
2,257
15,858,021
619,382
637,542
4.0%
(28,201)
0
0
$24.90 $15.55
620
3,894,392
120,524
121,424
3.1%
20,752
0
0
Baltimore
3,290
25,709,428
1,370,800
1,374,200
5.3%
264,167
0
0
$17.59
Baton Rouge
1,797
12,319,967
888,334
913,184
7.4%
(28,295)
0
0
$13.68
Beaumont/Port A. Birmingham
671
4,570,021
139,788
143,799
3.1%
(3,821)
0
0
$11.77
2,988
23,271,750
1,764,441
1,770,901
7.6%
(66,721)
0
0
$13.00
Boise City/Namp.
1,705
6,610,222
347,568
349,137
5.3%
(835)
0
0
$12.22
Boston
8,405
85,600,446
3,271,036
3,327,515
3.9%
9,558
0
0
$17.83
Bremerton/Silve.
345
2,463,929
109,744
119,602
4.9%
19,517
0
0
$14.12
Broward County
2,743
20,302,738
932,048
941,211
4.6%
107,072
0
0
$23.40 $12.39
Brownsville/Har.
178
56,487
56,487
4.9%
5,076
0
0
Buffalo/Niagara.
908
7,431,997
1,161,227
379,408
379,408
5.1%
16,611
0
0
$11.41
Charleston WV
407
2,808,413
184,255
189,605
6.8%
35,874
0
0
$13.71
Charleston/N Ch.
1,648
7,763,541
177,635
180,419
2.3%
(4,666)
0
0
$15.92
Charlotte
3,219
19,646,270
810,557
824,493
4.2%
(17,166)
0
0
$16.41
700
5,305,065
365,745
365,745
6.9%
(29,088)
0
0
$14.06
Chicago
6,751
78,449,437
7,087,400
7,215,592
9.2%
30,918
0
0
$19.93
Cincinnati
4,007
32,487,322
1,626,068
1,627,291
5.0%
85,343
0
0
$13.50
Cleveland
4,862
44,514,577
4,522,623
4,562,488
10.2%
20,628
0
0
$14.64
Chattanooga
735
4,350,640
277,248
277,248
6.4%
13,648
0
0
$11.64
Columbia
Colorado Spring.
1,302
6,205,302
377,716
377,716
6.1%
14,821
0
0
$13.27
Columbus
$15.46
2,939
30,045,953
1,423,003
1,444,473
4.8%
18,318
0
0
Columbus GA
628
2,995,375
258,346
258,346
8.6%
(46,628)
0
0
$11.74
Corpus Christi
330
2,526,569
199,535
204,344
8.1%
(38,098)
0
0
$11.30
6,117
47,730,619
3,535,832
3,548,412
7.4%
147,601
0
0
$18.39
266
2,798,404
160,684
160,684
5.7%
(41,425)
0
0
$10.18
2,500
23,468,627
2,461,113
10.6%
(34,793)
0
0
$11.98
742
2,879,827
113,156
113,156
3.9%
8,908
0
0
$10.58
3,267
25,447,082
1,027,281
1,042,971
4.1%
49,464
0
0
$19.00
616
5,025,444
170,625
170,625
3.4%
(10,135)
0
0
$10.76
3,524,147
3,541,823
7.5%
57,843
0
0
$15.88
Dallas/Ft Worth Davenport/Molin. Dayton Deltona/Daytona. Denver Des Moines Detroit Duluth
6,124
47,218,378
2,494,943
2.9%
(6,039)
0
0
$11.07
(108,793)
0
0
$23.44
2,836,082
81,023
3,421
26,975,986
1,288,638
El Paso
1,922
12,202,765
870,146
871,146
7.1%
37,146
0
0
$14.62
404
2,586,768
156,346
156,346
6.0%
(9,896)
0
0
$10.64
Evansville
357
3,220,766
140,654
142,335
4.4%
25,568
0
0
$10.88
Fayetteville
444
1,825,152
112,576
112,576
6.2%
(1,456)
0
0
$12.78
Fayetteville/Sp.
651
3,716,849
218,981
218,981
5.9%
(37,717)
0
0
$13.48
Fort Smith
219
1,270,965
68,558
68,558
5.4%
(12,734)
0
0
$7.78
Fort Wayne
661
5,715,783
168,046
168,046
2.9%
15,568
0
0
$11.39
1,950
16,036,793
1,084,879
1,090,879
6.8%
(26,635)
0
0
$13.51
451
3,549,121
284,139
284,139
8.0%
13,957
0
0
$9.83
Erie
Fresno Green Bay
81,023
4.9%
370
East Bay/Oaklan.
1,312,340
Source: CoStar Property®
26
CoStar Office Statistics
©2017 CoStar Group, Inc.
First Quarter 2017 – National
National Office Market Figures at a Glance
Class C Market Statistics
First Quarter 2017
Existing Inventory Market
# Blds
Total RBA
Vacancy Direct SF
Total SF
Vac %
YTD
Under
Absorption
Deliveries
Const SF
Quoted
(65,027)
0
0
Rates
Greensboro/Wins. 3,235
19,379,109
1,171,991
1,180,641
Greenville/Spar.
2,367
10,484,883
597,969
610,656
5.8%
(34,551)
0
0
$12.23
Hampton Roads
1,654
9,530,013
651,441
653,941
6.9%
(56,293)
0
0
$12.95
Hartford
4,306
34,925,400
2,302,262
2,304,075
6.6%
(7,105)
0
0
$16.36
741
7,587,902
315,966
321,418
4.2%
(47,423)
0
0
$23.19
3,668
38,796,413
2,699,041
2,713,229
7.0%
(48,339)
0
0
$17.97
Huntington/Ashl.
444
2,849,474
233,911
233,911
8.2%
11,248
0
0
$8.35
Huntsville
547
5,770,629
710,162
731,385
12.7%
35,019
0
0
$12.26
Indianapolis
2,865
22,085,574
1,511,963
1,518,403
6.9%
(125,891)
0
0
$14.04
Inland Empire (.
3,051
20,175,537
1,330,581
1,348,196
6.7%
77,156
0
0
$15.60 $12.86
Hawaii Houston
6.1%
YTD Net
$12.57
796
5,732,491
152,292
152,292
2.7%
16,363
0
0
Jacksonville (F.
2,674
14,495,137
1,114,622
1,119,285
7.7%
14,026
0
0
$16.32
Kansas City
2,357
22,938,040
1,332,879
1,335,129
5.8%
(4,210)
0
0
$14.43 $13.27
Jackson
Killeen/Temple/.
216
116,452
116,452
8.3%
1,145
0
0
Kingsport/Brist.
446
3,038,846
240,393
240,393
7.9%
(43,357)
0
0
$10.10
2,196
15,528,501
477,287
477,287
3.1%
4,550
0
0
$12.47
(11,494)
Knoxville Lafayette
1,397,313
0
0
$14.84
0
0
$14.15
4.4%
(6,099)
0
0
$11.26
55,317
3.5%
(14,143)
0
0
$11.38
757,334
3.8%
(33,439)
0
0
$14.15
4,063,539
201,231
5.0%
8,563,315
968,046
976,104
11.4%
Lexington/Fayet.
648
4,484,470
193,357
196,183
Lincoln
234
1,587,081
55,317
2,112
19,937,295
755,692
6,041
50,498,898
Little Rock/N L. Long Island (Ne. Los Angeles
201,231
1,718
481 1,543
Las Vegas
2,127,361
11,385
87,463,811
3,767,938
2,165,933
4.3%
(11,427)
0
0
$24.71
3,852,964
4.4%
(249,674)
0
0
$27.78
Louisville
2,273
18,108,600
887,697
890,295
4.9%
44,058
0
0
$13.46
Lubbock
969
5,490,207
405,915
409,646
7.5%
(24,060)
0
0
$12.24
Madison
535
4,304,254
235,548
248,737
5.8%
32,745
0
0
$11.26
McAllen/Edinbur.
236
1,841,607
122,576
122,576
6.7%
(2,421)
0
0
$14.24
1,510
12,198,776
1,209,987
1,209,987
9.9%
20,580
0
0
$12.89
Miami-Dade Coun 3,007
25,671,656
1,030,493
1,036,698
4.0%
46,954
0
0
$26.64 $12.38
Memphis Milwaukee
2,125
Minneapolis
3,863
40,694,238
17,061,263
939,243
943,243
5.5%
(21,488)
0
0
2,121,662
2,157,764
5.3%
150,922
0
0
Mobile
1,258
$14.21
5,851,475
338,824
338,824
5.8%
(15,343)
0
0
$11.36 $10.15
Montgomery
807
5,577,901
344,367
344,367
6.2%
(32,061)
0
0
Myrtle Beach/Co.
513
2,258,332
64,489
64,489
2.9%
(11,394)
0
0
2,891
20,860,369
602,418
604,876
2.9%
(94,157)
0
0
699,547
3.6%
68,057
0
0
$14.74
4,117,255
5.8%
(288,597)
0
0
$54.80
Nashville
$11.17 $18.93
New Orleans/Met. 2,489
19,233,927
695,294
New York City
1,920
71,067,640
3,783,526
North Bay/Santa.
2,362
13,949,548
842,925
848,314
6.1%
(39,172)
0
0
$21.35
Northern New Je. 10,896
81,776,401
5,924,228
5,970,494
7.3%
(58,052)
0
0
$20.24
488
3,217,812
151,402
162,543
5.1%
24,653
0
0
$11.02
2,588
17,220,112
770,494
774,830
4.5%
32,289
0
0
$13.50
Ocala Oklahoma City Olympia
428
2,752,628
274,954
274,954
10.0%
(17,043)
0
0
$13.67
Omaha/CouncilB.
899
7,475,298
253,194
253,194
3.4%
(5,504)
0
0
$10.20
Orange County (.
2,804
22,100,814
998,450
1,009,196
4.6%
14,084
0
0
$21.80
5,114
28,705,883
1,567,292
1,578,784
5.5%
51,354
0
0
$16.80
Orlando . Palm Beach Coun
1,561
11,697,712
634,428
639,383
5.5%
(71,103)
0
0
$23.27
Pensacola
1,378
7,437,806
232,040
236,934
3.2%
44,993
0
0
$11.99
253
2,437,287
173,807
173,807
7.1%
(52,664)
0
0
$11.54
Peoria Source: CoStar Property®
©2017 CoStar Group, Inc.
CoStar Office Statistics
27
National � First Quarter 2017
National Office Market Figures at a Glance
Class C Market Statistics
First Quarter 2017
Existing Inventory Market
# Blds
Philadelphia
14,243
Total RBA
Vacancy Direct SF
Total SF
Vac %
109,325,869
6,458,794
6,542,192
6.0%
YTD Net
YTD
Under
Absorption
Deliveries
Const SF
0
0
$17.94 $16.59
105,643
Quoted Rates
Phoenix
3,391
23,009,319
2,536,187
2,556,484
11.1%
(75,053)
0
0
Pittsburgh
4,398
29,435,896
1,297,299
1,300,607
4.4%
140,830
0
0
$15.01
505
2,556,725
124,994
127,365
5.0%
22,227
0
0
$14.79
Portland
3,571
24,086,989
1,023,480
1,030,448
4.3%
23,491
0
0
$18.47
Portland/South .
1,279
11,118,699
492,284
492,484
4.4%
64,733
0
0
$11.82
Providence
2,132
17,124,095
683,072
691,405
4.0%
(89,617)
0
0
$15.56
Raleigh/Durham
Port St Lucie/F.
2,262
15,264,228
455,164
455,164
3.0%
30,072
0
0
$16.01
Reno/Sparks
838
7,017,726
635,943
657,494
9.4%
(15,353)
0
0
$15.90
Richmond VA
1,736
12,282,911
Roanoke Rochester Sacramento
661,197
662,825
5.4%
18,399
0
0
$13.06
714
5,941,701
353,864
355,864
6.0%
17,957
0
0
$12.38
1,193
10,929,173
707,249
709,127
6.5%
(80,748)
0
0
$11.44
2,946
29,572,423
3,144,491
3,155,102
10.7%
(13,970)
0
0
$17.28
(2,607)
0
0
$18.08
0
0
$12.88
0
0
$16.28
569
3,706,943
97,854
99,934
2.7%
Salt Lake City
1,729
12,826,691
555,146
557,459
4.3%
San Antonio
2,072
16,365,072
1,100,134
1,108,349
6.8%
San Diego
3,125
24,095,068
1,161,784
1,169,451
4.9%
54,178
0
0
$22.81
San Francisco
2,097
24,000,738
805,499
893,643
3.7%
21,903
0
0
$46.86
San Luis Obispo.
665
3,922,785
38,312
1.1%
15,662
0
0
$18.65
Santa Barbara/S.
265
1,471,365
40,453
2.7%
(3,094)
0
0
$14.05
Santa Cruz/Wats.
451
2,676,829
60,196
60,196
2.2%
(13,831)
0
0
$16.37
Savannah
917
4,998,751
161,309
163,712
3.3%
(20,502)
0
0
$14.05
Salinas
41,912 40,453
795 (154,127)
4,451
30,249,429
1,011,061
1,043,436
3.4%
21,840
0
0
$21.53
Shreveport/Boss.
663
6,478,935
469,141
469,141
7.2%
(25,926)
0
0
$12.38
South Bay/San J.
2,601
21,536,889
1,029,683
1,102,594
5.1%
(46,182)
0
0
$32.28
South Bend/Mish.
580
4,456,827
111,085
111,085
2.5%
(7,027)
0
0
$12.47
1,476
8,817,009
491,555
491,555
5.6%
50,029
0
0
$12.73
Spokane
660
4,134,531
185,279
190,041
4.6%
15,834
0
0
$16.63
Springfield
304
2,270,068
94,340
94,340
4.2%
1,710
0
0
$10.98
Seattle/Puget S.
Southwest Flori.
3,216
30,690,336
2,036,232
2,036,232
6.6%
25,077
0
0
$14.13
Stockton/Modest. 1,290
8,996,623
582,333
582,933
6.5%
54,571
0
0
$13.97
Syracuse
1,025
9,287,425
690,927
690,927
7.4%
(38,626)
0
0
$11.25
685
2,757,385
120,168
124,787
4.5%
12,494
0
0
$12.97
Tampa/St Peters. 8,237
49,635,100
2,590,319
2,669,738
5.4%
28,445
0
0
$16.27
Toledo
16,836,204
1,509,718
1,512,468
9.0%
(54,120)
0
0
$10.87 $15.29
St. Louis
Tallahassee
2,100
Tucson
1,210
5,205,980
343,290
343,290
6.6%
(38,783)
0
0
Tulsa
1,790
13,082,859
546,098
558,625
4.3%
37,761
0
0
$12.18
359
3,051,877
80,500
80,500
2.6%
(17,676)
0
0
$10.57
Utica/Rome
950
4,993,852
180,435
180,435
3.6%
41,402
0
0
$12.75
Washington
4,204
36,748,482
2,426,297
2,530,721
6.9%
(52,226)
0
0
$26.44
West Michigan
4,047
29,132,016
1,602,190
1,614,423
5.5%
132,098
0
0
$10.24
Westchester/So .
4,997
43,831,977
2,869,133
2,883,324
6.6%
148,996
0
0
$21.08
991
7,571,713
292,706
292,706
3.9%
7,919
0
0
$9.77
1,146
4,591,878
122,829
122,829
2.7%
(2,252)
0
0
$11.83
Visalia/Porterv.
Wichita Wilmington
174
973,291
73,969
73,969
7.6%
(12,452)
0
0
$9.98
Youngstown/Warr 1,381
8,797,280
358,240
358,240
4.1%
(4,476)
0
0
$9.25
5.9%
(219,336)
Yakima Totals
305,722
2,374,837,847
138,411,463
140,293,461
0
0
$17.71
Source: CoStar Property®
28
CoStar Office Statistics
©2017 CoStar Group, Inc.
First Quarter 2017 – National
National Office Market Figures at a Glance
Total Office Market Statistics Existing Inventory Market
# Blds
Albany/Schenect. 3,996
Direct SF
Total SF
64,782,869
3,036,256
3,082,996
3,018
37,166,326
2,828,438
2,877,683
678
14,569,930
890,615
935,769
1,295
12,766,618
344,551
362,046
15,979
305,005,071
35,081,426
Albuquerque Anchorage Asheville Atlanta
Total RBA
First Quarter 2017 Vacancy
Augusta/Richmon 1,706
13,760,505
996,488
Austin
96,904,284
7,211,883
4,650
Bakersfield
4.8%
YTD
Under
Absorption
Deliveries
Const SF
Rates
7,626
13,300
151,621
7.7%
161,065
98,000
43,000
6.4%
(125,424)
15,000
0
$28.31
2.8%
28,674
8,470
0
$16.21
12.1%
(184,269)
157,044
997,501
7.2%
23,244
24,000
8,062,697
8.3%
225,553
297,684
13,288
$13.54
3,842,183 $32.47 101,800 $18.96
13,386,617
14,224,542
14,579,953
Baton Rouge
2,412
22,426,765
2,027,222
2,081,847
809
8,265,827
357,283
361,294
3,935
58,506,001
6,504,971
6,597,589
11.3%
(175,821)
55,347
458,940
$16.67
Boise City/Namp. 2,888
29,657,955
2,148,456
2,186,503
7.4%
(92,466)
6,340
154,340
$16.52
399,281,833
29,569,878
32,010,548
8.0%
1,114,738
13,744
Bremerton/Silve.
500
4,957,419
392,495
Broward County
4,066
69,179,047
6,377,838
Brownsville/Har.
382
Buffalo/Niagara.
1,817
0
5,578,371 $22.30
140,557,934
10.4%
7,313
$14.90
1,144
Boston
5.7%
$14.11
6,429
Birmingham
768,890
Quoted
Baltimore Beaumont/Port A.
744,745
36,871,443
Vac %
YTD Net
898,285
349,079
1,526,870 $22.72
9.3%
87,224
62,411
220,837 $16.85
4.4%
32,787
402,353
8.1%
(10,507)
6,715,441
9.7%
610,110
0
1,175,027 0 578,387
3,846,611
189,557
189,557
4.9%
22,744
7,000
39,207,765
3,544,517
3,568,613
9.1%
(84,361)
24,000
996
12,927,629
1,058,262
1,074,693
8.3%
(17,747)
Charleston/N Ch. 3,065
28,267,258
1,982,213
2,009,363
7.1%
(89,756)
102,755,029
9,221,421
9,543,390
9.3%
66,679
616,399
Charleston WV Charlotte
5,537 1,048
17,778,555
997,071
1,053,659
13,643
470,836,771
59,463,158
62,708,980
Chattanooga Chicago
$14.35
4,155,500 $21.45 0
$17.12
472,487 $26.40 0
$15.70
138,000
$15.83
2,400
18,000
$15.13
57,055
620,359
$21.31
(33,053)
10,000
2,504,279
1,823,604
1,907,798 $22.91 41,000
$16.15
4,079,157 $23.84
Cincinnati
5,227
98,644,326
9,132,649
9.4%
(263,542)
50,141
733,854
$16.47
Cleveland
7,237
145,859,031
15,916,512
16,049,035
11.0%
252,736
93,096
637,852
$17.02
Colorado Spring.
1,726
28,740,080
3,316,531
3,341,479
11.6%
84,684
Columbia
2,826
32,494,584
2,028,866
6.5%
186,160
Columbus
4,285
97,779,663
6,491,369
6,736,070
6.9%
48,146
0
Columbus GA
1,039
9,592,877
729,397
730,976
7.6%
(84,042)
0
Corpus Christi Dallas/Ft Worth
723 12,236
933,692 51,922,010
521
7,657,192
369,973
369,973
43,269,704
5,459,348
5,558,994
Deltona/Daytona. 1,708 Denver
921,420 49,655,785
2,112,707
3,046
Davenport/Molin. Dayton
10,548,044 362,873,968
9,285,123
5.9% 13.3%
0
7,566
11,121,436 197,203,540
533,736 18,281,049
541,597 19,968,728
8.9% 14.3%
(88,910) 1,525,503
0 2,500
0 2,377,125
4.8%
(26,237)
0
12.8%
(92,354)
5,000
4.9%
69,994
65,700
10.1%
(42,246)
883,313
112,440 $15.87 73,460
$15.79
1,349,062 $17.86 11,480
$14.10
143,696 $15.40 11,897,055 $24.52 126,500
$12.56
6,900
$14.43
20,500
$12.59
5,845,847 $25.54
Des Moines
1,376
36,247,762
1,331,843
1,438,293
4.0%
155,862
179,365
299,458
$13.96
Detroit
9,503
198,462,643
22,223,132
22,526,641
11.4%
441,935
325,870
922,894
$18.94
198,271
198,271
2.8%
(8,500)
East Bay/Oaklan.
Duluth
5,268
455
110,259,975
7,013,085
8,284,388
8,558,319
7.8%
112,555
75,900
El Paso
2,457
22,122,969
1,350,124
1,363,417
6.2%
97,087
4,375
Erie
774
9,025,887
340,477
340,477
3.8%
Evansville
791
11,240,576
697,032
698,713
6.2%
(15,383)
Fayetteville
976
7,014,609
468,822
468,822
6.7%
27,465
19,038
1,267
14,833,653
1,001,877
1,015,238
6.8%
(62,858)
14,576
523
4,650,165
176,171
176,171
3.8%
(12,012)
3,000
1,112
16,783,934
978,669
979,169
5.8%
23,993
6,000
Fayetteville/Sp. Fort Smith Fort Wayne
832
0
Fresno
2,873
32,257,321
2,846,261
2,892,825
9.0%
20,957
Green Bay
1,042
15,853,092
1,228,312
1,228,456
7.7%
(44,324)
0 0
0 10,096
5,040 1,068,798
$13.35 $31.19
141,581 $15.47 0
$10.86
86,700
$11.04
30,520
$15.73
342,174 $16.27 0
$10.10
26,171 $13.66 187,629
$16.16
98,907
$12.20
Source: CoStar Property®
©2017 CoStar Group, Inc.
CoStar Office Statistics
29
National � First Quarter 2017
National Office Market Figures at a Glance
Total Office Market Statistics
First Quarter 2017
Existing Inventory Market
# Blds
Greensboro/Wins. 4,391
Total RBA 56,371,086
Vacancy Direct SF
Total SF
5,247,815
5,401,523
Vac %
YTD Net
YTD
Under
Absorption
Deliveries
Const SF
9.6%
(156,658)
0
Quoted Rates
14,500
$15.37 $16.13
Greenville/Spar.
4,374
38,520,371
2,887,293
3,146,943
8.2%
(45,519)
45,000
91,913
Hampton Roads
3,404
50,277,797
5,278,002
5,439,071
10.8%
9,043
42,100
221,151 $16.95
Hartford
5,830
95,045,235
8,032,142
8,156,472
8.6%
(803,129)
123,000
322,100 $18.97
Hawaii
1,232
33,727,729
1,689,982
1,743,968
5.2%
(27,798)
7,879
Houston
7,183
305,337,297
43,291,037
48,207,381
15.8%
(751,841)
1,921,321 12,960
108,152 $29.37 2,288,834 $27.56
Huntington/Ashl.
1,048
8,845,670
416,578
416,578
4.7%
(9,142)
Huntsville
1,027
20,605,711
1,989,997
2,055,270
10.0%
16,736
Indianapolis
5,555
102,878,304
7,614,677
7,914,073
7.7%
(118,413)
Inland Empire (.
6,191
73,302,643
6,515,520
6,675,944
9.1%
391,049
Jackson
1,647
23,455,112
1,467,331
1,522,343
6.5%
(73,921)
Jacksonville (F.
4,556
63,447,161
5,269,752
5,513,613
8.7%
89,778
79,060
318,547 $18.59
Kansas City
315,816
809,375
4,448
117,008,682
9,413,648
9,925,734
8.5%
622,177
Killeen/Temple/.
363
3,130,775
200,243
212,488
6.8%
(1,187)
Kingsport/Brist.
649
7,455,508
561,107
561,107
7.5%
(16,718)
2,924
33,436,032
1,881,184
1,941,909
5.8%
Knoxville
195,890
Lafayette
644
8,393,988
442,402
453,303
5.4%
Las Vegas
3,916
63,065,230
8,847,270
9,179,760
14.6%
339,805
Lexington/Fayet.
1,280
19,055,509
1,574,380
1,595,347
8.4%
(46,592)
Lincoln
7,374
782
15,993,818
577,831
578,331
3.6%
30,964
Little Rock/N L.
2,470
33,667,007
1,496,497
1,530,061
4.5%
(61,251)
Long Island (Ne.
10,502
184,842,322
12,535,558
13,147,794
Los Angeles
18,137
433,599,841
45,643,806
47,484,828
Louisville
3,609
4,032 0
0 30,000 52,000 0 93,000 0 55,000
$10.62 $14.51
1,268,741 $17.83 529,060
$20.51
48,515
$16.30
0 0
$18.71 $13.12 $12.31
22,966
$14.52
21,000
$14.96
700,055 0 44,000
$19.27 $16.05 $13.03
41,729
139,737 $15.64
7.1%
(469,325)
122,648
4,242,860 $28.55
(1,397,481)
1,271,399
5,154,313 $34.15
55,363,626
4,056,301
4,137,535
7.5%
232,875
1,218
10,810,260
609,829
617,574
5.7%
30,488
Madison
1,407
32,664,945
1,888,266
1,990,545
6.1%
65,467
612
7,573,103
382,226
382,226
2,879
53,043,170
5,368,207
5,509,912
10.4%
866,927
Miami-Dade Coun 4,333
101,734,876
9,009,139
9,218,862
9.1%
293,605
McAllen/Edinbur.
207,685
0 143,000
11.0%
Lubbock
Memphis
0
5.0%
(12,953)
5,035 0 20,050 0 948,000
270,005
$16.55
56,346
$14.62
1,507,418 $15.91 0 283,805
$15.78 $16.57
151,614
1,882,673 $33.73 2,119,735 $16.16
Milwaukee
3,744
81,069,700
6,194,524
6,236,824
7.7%
(43,212)
5,200
Minneapolis
6,132
192,753,832
13,508,358
13,782,064
7.2%
425,726
116,400
Mobile
2,124
17,294,766
1,104,737
1,164,910
6.7%
(14,204)
Montgomery
1,319
16,010,298
1,288,152
1,312,307
8.2%
(199,843)
3,300
0
$13.28
796
5,925,462
190,161
190,161
3.2%
10,358
8,330
0
$13.65
4,461
81,316,055
4,274,226
4,514,157
5.6%
(551,625)
401,661
Myrtle Beach/Co. Nashville
New Orleans/Met. 3,224 New York City
3,790
North Bay/Santa. 3,709 Northern New Je. 17,128 Ocala Oklahoma City Olympia
0
48,093,202
3,061,552
3,138,495
6.5%
112,297
0
558,618,469
42,381,301
46,816,480
8.4%
(1,652,906)
0
4,167,992
10.2%
(77,702)
2,315
19,000
48,889,983
13.4%
405,481
604,642
2,306,562
7.1%
54,823
6,277
327,743
4,398
58,832,329
3,578,193
3,595,928
6.1%
176,961
124,605
864
9,686,726
696,376
708,400
7.3%
15,981
18,300
44,859,964
2,197,180
2,232,512
5.0%
162,521
153,956,214
13,313,938
13,936,715
9.1%
49,390
212,100
Orlando
105,127,140
8,219,210
8,289,936
7.9%
262,943
146,152
55,189,572
6,100,834
6,193,599
11.2%
Pensacola Peoria
107,300
9,542
2,001
14,534,161
616,805
621,699
4.3%
304,498
537
10,440,188
577,769
577,769
5.5%
(38,340)
0
0 206,000 0
$17.25
15,748,666 $65.41
4,117,509 316,602
8,357
2,025,818 $25.16
46,114,376
4,639,488
. 2,810 Palm Beach Coun
$13.67
40,784,219
630
1,808
$19.02
57,807
363,526,845
Orange County (. 6,064
Omaha/CouncilB.
859,345
0 797,346 0 402,944
$26.37 $25.11 $12.25 $16.27 $16.00 $16.06
2,226,702 $28.84 668,815
$19.70
180,883 $28.04 254,450 0
$14.52 $12.84
Source: CoStar Property®
30
CoStar Office Statistics
©2017 CoStar Group, Inc.
First Quarter 2017 – National
National Office Market Figures at a Glance
Total Office Market Statistics Existing Inventory Market
# Blds
Philadelphia
23,399
Total RBA 419,782,695
First Quarter 2017 Vacancy
Direct SF
Total SF
Vac %
35,444,782
36,557,329
8.7%
YTD Net
YTD
Under
Quoted
Absorption
Deliveries
Const SF
Rates
173,096
214,556 1,245,094
764,108 $23.55
158,341
716,990 $20.94
Phoenix
8,263
172,367,678
25,235,371
26,471,235
15.4%
595,408
Pittsburgh
6,881
127,997,020
10,205,548
10,505,491
8.2%
(221,740)
Port St Lucie/F.
991
9,786,878
802,307
807,178
8.2%
76,264
Portland
5,309
99,768,833
7,215,101
7,623,683
7.6%
(153,119)
54,663
Portland/South .
1,756
24,640,608
1,428,953
1,479,219
6.0%
(219,002)
3,087
Providence
2,853
42,654,257
2,677,507
2,693,909
6.3%
11,006
6,160
Raleigh/Durham
4,746
96,631,683
5,662,175
5,877,209
6.1%
231,394
151,648
Reno/Sparks
1,628
19,075,062
1,919,598
1,986,603
10.4%
127,599
Richmond VA
3,164
63,033,637
4,760,801
5,102,237
8.1%
(26,867)
0
0 4,650
4,398,979 $22.68
103,224 2,916,680 79,000
$14.81 $24.11 $14.25
420,412
$17.22
3,069,404
$21.32
19,075
$17.62
91,804
$17.63
Roanoke
1,012
13,589,453
1,322,598
9.7%
43,246
0
16,800
$15.86
Rochester
1,973
42,918,400
3,638,907
3,704,290
8.6%
(232,521)
0
351,500
$12.43
Sacramento
4,842
101,817,761
11,120,849
11,404,535
11.2%
(138,629)
5.8%
324,892
Salinas
830
1,318,614
8,394,112
481,622
485,558
0 141,226
9,798 0
$21.21 $20.54
Salt Lake City
4,707
98,399,122
5,643,329
6,294,656
6.4%
(228,048)
202,551
1,473,418 $20.26
San Antonio
3,799
75,698,943
6,978,210
7,133,526
9.4%
(116,958)
150,735
1,514,380 $20.40
San Diego
5,326
113,943,208
10,281,232
11,202,152
9.8%
372,817
14,243
San Francisco
3,859
167,544,877
10,134,301
11,881,694
7.1%
(260,335)
305,673
868,749
$31.22
8,114,635 $57.81
San Luis Obispo.
838
5,934,067
88,488
93,688
1.6%
5,591
0
Santa Barbara/S.
1,430
12,072,594
289,525
303,961
2.5%
5,407
0
0
$21.04
Santa Cruz/Wats.
864
7,309,571
437,457
440,780
6.0%
(90,979)
0
0
$22.38
Savannah
1,460
11,510,777
619,414
625,491
5.4%
(12,900)
4,653
Seattle/Puget S.
7,778
195,159,315
13,918,530
15,007,752
7.7%
40,098
78,358
Shreveport/Boss.
791
South Bay/San J.
4,524
10,828,956 115,457,483
839,126
840,261
7.8%
24,325
7,256,085
8,780,177
7.6%
745,860
804
9,176,472
510,132
514,242
5.6%
Southwest Flori.
3,243
33,163,393
2,499,988
2,523,924
7.6%
208,881
Spokane
1,664
21,796,354
1,968,475
1,998,651
9.2%
54,331
586,510
6.6%
South Bend/Mish.
Springfield
739
St. Louis
5,550
8,832,651 131,088,314
573,925 10,308,393
10,570,681
8.1%
(61,781)
(11,770) 202,485
0 581,966
69,594
46,004
$19.58
$17.32
8,021,277 $30.96 27,500
$13.09
9,920,471 $40.79
15,499
45,000
80,841
149,426
$15.25
16,000
$15.94
0 0 122,800
$14.57
101,211 $13.14 718,581 $18.34
Stockton/Modest. 1,968
20,612,905
1,386,901
1,394,387
6.8%
129,203
0
306,000
$15.13
Syracuse
2,132
35,887,695
3,360,413
3,428,094
9.6%
(286,204)
0
68,500
$14.05
Tallahassee
2,220
22,159,589
87,015
$15.25
968,586
1,015,986
4.6%
145,177
56,000
Tampa/St Peters. 13,340
151,101,179
11,014,592
11,473,339
7.6%
338,579
28,415
Toledo
2,645
31,141,026
2,723,543
2,729,969
8.8%
(129,561)
Tucson
2,503
25,756,404
2,790,559
2,807,513
10.9%
56,438
Tulsa
2,721
52,152,015
4,922,389
4,995,267
9.6%
122,629
Utica/Rome
630
8,876,963
337,792
337,792
3.8%
50,173
0
Visalia/Porterv.
1,115
6,373,727
264,406
264,406
4.1%
54,155
0
Washington
10,051
470,342,343
62,891,288
West Michigan
6,208
80,235,747
4,756,604
4,823,712
6.0%
374,591
21,256,169
12.3%
(192,651)
66,003,605
14.0%
2,754,849
Westchester/So .
7,711
172,443,682
20,816,785
Wichita
1,675
23,129,046
1,545,115
1,553,064
6.7%
Wilmington
1,774
13,050,195
631,020
634,404
4.9%
4,540,036
356,866
356,866
15,247,587
821,075
821,075
9.7%
10,781,092
Yakima
597
Youngstown/Warr 1,830 Totals
524,944
10,807,080,486
999,041,802
1,048,551,041
(1,287)
0 0 29,258
686,172 35,000 11,500 8,400
54,530
0
7.9%
(18,844)
0
5.4%
(36,093)
0
347,632 $20.34 16,926
$13.39
88,631
$18.91
149,987 $14.85 0 6,144
$10.52 $14.49
11,021,323 $35.30 910,250
$12.73
1,091,159 $28.71 0
$13.02
261,011 $16.77 0 74,984
21,291,741 154,430,090
$11.04 $9.93 $24.44
Source: CoStar Property®
©2017 CoStar Group, Inc.
CoStar Office Statistics
31
National � First Quarter 2017
National Office Market Figures at a Glance
Class A Market Statistics
First Quarter 2017, Grouped by CBD vs Suburban
Existing Inventory Market CBD
Suburban Class A Totals
# Bldgs
Total RBA
Vacancy Direct SF
Total SF
2,815
1,188,622,547
124,219,648
15,418
2,257,205,518
268,923,748
18,233
3,445,828,065
393,143,396
133,888,390
Vac %
YTD Net
YTD
Under
Quoted
Absorption
Deliveries
Const SF
Rates
11.3%
(644,771)
4,242,612
42,916,199
$36.29
290,410,369 12.9%
5,708,938
11,933,479
80,636,947
$28.68
5,064,167
16,176,091 123,553,146
$30.71
424,298,759
12.3%
Source: CoStar Property®
Class B Market Statistics
First Quarter 2017, Grouped by CBD vs Suburban
Existing Inventory Market CBD
Suburban Class B Totals
# Bldgs
Total RBA
Vacancy Direct SF
Total SF
Vac %
YTD Net
YTD
Under
Quoted
Absorption
Deliveries
Const SF
Rates
15,362
910,754,633
80,567,980
84,342,056
9.3%
(296,396)
169,339
2,507,649
$27.57
185,627
4,075,659,941
386,918,963
399,616,765
9.8%
6,232,657
4,946,311
28,369,295
$20.63
9.7%
5,936,261
200,989
4,986,414,574
467,486,943
483,958,821
5,115,650
30,876,944
$21.59
Source: CoStar Property®
Class C Market Statistics
First Quarter 2017, Grouped by CBD vs Suburban
Existing Inventory Market CBD
Suburban Class C Totals
# Bldgs
Total RBA
24,259
360,770,111
281,463
2,014,067,736
305,722
2,374,837,847
Vacancy Direct SF
Total SF
Vac %
YTD Net
YTD
Under
Quoted
Absorption
Deliveries
Const SF
Rates
23,197,075
23,842,302
6.6%
(320,272)
0
0
$23.98
115,214,388
116,451,159 5.8%
100,936
0
0
$16.83
(219,336)
0
0
$17.71
138,411,463
140,293,461
5.9%
Source: CoStar Property®
Class A&B Market Statistics
First Quarter 2017, Grouped by CBD vs Suburban
Existing Inventory Market
YTD
Under
Quoted
Absorption
Deliveries
Const SF
Rates
45,423,848
$32.78
16,879,790 109,006,242
$23.81
Direct SF
Total SF
18,177
2,099,377,180
204,787,628
218,230,446 10.4%
(941,167)
Suburban
201,045
6,332,865,459
655,842,711
690,027,134 10.9%
11,941,595
Class A&B Totals
219,222
8,432,242,639
860,630,339
908,257,580
Vac %
YTD Net
Total RBA
CBD
# Bldgs
Vacancy
10.8%
11,000,428
4,411,951
21,291,741 154,430,090
$25.55
Source: CoStar Property®
Class A,B&C Market Statistics
First Quarter 2017, Grouped by CBD vs Suburban
Existing Inventory Market CBD
# Bldgs
Total RBA
Vacancy Direct SF
Total SF
Vac %
YTD Net
YTD
Under
Quoted
Absorption
Deliveries
Const SF
Rates
42,436
2,460,147,291
227,984,703
242,072,748
9.8%
(1,261,439)
Suburban
482,508
8,346,933,195
771,057,099
806,478,293
9.7%
12,042,531
Grand Totals
524,944
1,048,551,041
9.7%
10,807,080,486
999,041,802
10,781,092
4,411,951
45,423,848
$31.94
16,879,790 109,006,242
$22.75
21,291,741 154,430,090
$24.44
Source: CoStar Property®
32
CoStar Office Statistics
©2017 CoStar Group, Inc.
First Quarter 2017 – National
National Office Market Figures at a Glance
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©2017 CoStar Group, Inc.
CoStar Office Statistics
33
National � First Quarter 2017
National Office Market Leasing Activity
Historical Rental Rates* Based on Full-Service Equivalent Rental Rates Class A
Class B
Class C
Total Market
$35.00
Dollars/SF/Year
$30.00
$25.00
$20.00
$15.00
$10.00 2000 4q
2001 4q
2002 4q
2003 4q
2004 4q
2005 4q
2006 4q
2007 4q
2008 4q
2009 4q
2010 4q
2011 4q
2012 4q
2013 4q
2014 4q
2015 4q
2016 4q
Source: CoStar Property® * Select markets included in this historical chart - see Methodology page.
Vacancy by Available Space Type
Vacancy by Class
Percent of All Vacant Space in Direct vs. Sublet
Percent of All Vacant Space by Class
5%
Direct
Class A
13%
Class B
Sublet
Class C
40%
47% 95% Source: CoStar Property®
Source: CoStar Property®
Future Space Available Space Scheduled to be Available for Occupancy in the Future* 120.0
108.50
100.0
80.0
60.0
46.97
40.0 15.98
20.0
10.71
4.90
2.13
0.0 2017 2q
* includes Under Construction Spaces
34
2017 3q
2017 4q
2018 1q
2018 2q
2018 3q
Source: CoStar Property®
CoStar Office Statistics
©2017 CoStar Group, Inc.
First Quarter 2017 – National
National Office Market Leasing Activity
Select Top O�ce Leases
Based on Leased Square Footage For Deals Signed in 2017
Building
Market
SF
Qtr
Tenant Name
Tenant Rep Company
Landlord Rep Company
1
2300 Cloud Way
Austin
550,750
1st
Oracle
N/A
N/A
2
Sentinel Square III
Washington
473,000
1st
Federal Communications Commission
Unknown
Trammell Crow Company
3
200 Vesey St*
New York City
395,279
1st
RBC Capital Markets
Cushman & Wake�eld
Brook�eld O�ce Properties, Inc.
4
515 N State
Chicago
385,050
1st
Outcome Health
Cushman & Wake�eld; CBRE
The Telos Group LLC
5
4 World Trade Center
New York City
378,243
1st
Spotify Usa Inc.
JLL
Silverstein Properties; CBRE
6
HP Building 1 & 2
Houston
378,000
1st
HP
CBRE
JLL
7
925 11th Ave
South Bay/San Jose
350,000
1st
Amazon
JLL
Newmark Cornish & Carey
8
28 Liberty St
New York City
342,484
1st
New York State Attorney General
CBRE
JLL
9
370 17th St*
Denver
333,929
1st
Encana Oil & Gas (USA) Inc.
JLL
JLL
10
Tilt49
Seattle/Puget Sound
290,673
1st
Amazon, Inc.
N/A
Colliers International
11
1177 Avenue of the Americas*
New York City
285,780
1st
Kramer Levin Naftalis & Frankel LLP
Newmark Grubb Knight Frank
Silverstein Properties; Newmark
12
Foundry Square IV
San Francisco
227,632
1st
Slack Technologies
Colliers International
CBRE
13
3000 Olympus Blvd
Dallas/Ft Worth
216,400
1st
Brinker International
Cushman & Wake�eld of Texas, Inc.
Billingsley Company
14
Perimeter Park Seven
Raleigh/Durham
214,500
1st
INC Research
N/A
Trinity Partners
15
2100 University Ave
San Francisco
214,052
1st
Amazon
N/A
Direct Deal
16
285 Madison Ave
New York City
202,797
1st
Tommy Hil�ger
JLL
JLL
17
601 City Center
East Bay/Oakland
200,000
1st
Blue Shield
N/A
Cushman & Wake�eld
18
1812 N Moore St
Washington
196,718
1st
Nestle
CBRE
Monday Properties; JLL
19
400 Northpark
Atlanta
194,718
1st
WestRock Co.
Colliers International
Cousins Properties Incorporated
20
Alexander Court North Building
Washington
182,994
1st
Akin Gump
CBRE
Avison Young
21
Two Rincon
San Francisco
166,460
1st
Google
Hudson Paci�c Properties LP
CBRE
22
West Plaza
Chicago
163,982
1st
Old World Industries
N/A
Colliers International
23
Two Gateway
Northern New Jersey
160,070
1st
Broadridge Financial Solutions, Inc
Unknown
CBRE
24
Key Center Tower
Cleveland
147,795
1st
Forest City
CBRE
Jacobs Real Estate Services LLC
25
Opus Bldg.*
Minneapolis
134,601
1st
Digital River, Inc.
N/A
Colliers International
26
811 Louisiana St
Houston
127,734
1st
Targa Resources Corp.
Cushman & Wake�eld
Colvill O�ce Properties
27
1211 Avenue of the Americas
New York City
127,672
1st
Twenty-First Century Fox, Inc.
CBRE
Cushman & Wake�eld
28
One Legacy West
Dallas/Ft Worth
126,715
1st
NTT DATA, Inc.
E Smith Realty Partners
Gaedeke Group LLC
29
1100 Broadway
East Bay/Oakland
107,896
1st
UCOP
N/A
JLL
30
10391 Peter A McCuen Blvd*
Sacramento
106,592
1st
Sutter Health
N/A
N/A
31
Calverton Tower/Bldg V
Washington
106,197
1st
GSA
Unknown
Cushman & Wake�eld
32
Three Alliance Center
Atlanta
104,817
1st
CBRE
N/A
Tishman Speyer
33
323 Washington Ave N
Minneapolis
103,011
1st
Amazon
N/A
JLL
34
Broadway Station
San Francisco
102,079
1st
Chan Zuckerberg Initiative
Newmark Cornish & Carey
Cushman & Wake�eld
35
3333 Susan St
Orange County (California)
101,831
1st
The Los Angeles Chargers
N/A
Newmark Grubb Knight Frank
36
Topaz - San Pedro Waterfront
Los Angeles
99,343
1st
Molina Healthcare
McKinney Advisory Group, Inc.
CBRE
37
2050 M St NW
Washington
97,000
1st
Paul Hastings LLP
CBRE
Tishman Speyer
38
144 W 14th St
New York City
94,920
1st
Pratt Institute
Unknown
N/A
39
205 Hudson St
New York City
94,740
1st
WeWork
CBRE
Newmark Grubb Knight Frank
40
1 Liberty Plaza
New York City
91,116
1st
Avon Products, Inc.
Newmark Grubb Knight Frank
Newmark Grubb Knight Frank
Source: CoStar Property®
* Renewal
©2017 CoStar Group, Inc.
CoStar Office Statistics
35
National � First Quarter 2017
National Office Market Sales Activity
The Optimist Sales Index
Average of Two Highest Price/SF's and Two Lowest Cap Rates From Each Region Price/SF
$510
6.6%
$490
6.4%
$470 $450
6.2%
$430
6.0%
$410 5.8%
$390
5.6%
Dollars/SF
Cap Rate Percentage
Cap Rate
6.8%
$370
5.4%
$350
5.2%
$330
5.0%
$310 2014 1q
2015 1q
2016 1q
Source: CoStar COMPS®
Sales Volume & Price
Sales Analysis by Building Size
Based on Office Building Sales of 15,000 SF and Larger
Based on Office Building Sales From Jan. 2016 - Dec. 2016 Bldg Size
Price/SF
$350
$30,000
$300
$25,000
$250
$20,000
$200
$15,000
$150
$10,000
$100
$5,000
RBA
$ Volume
Price/SF Cap Rate
$16,154,110,542 $ 197.87
7.38%
50K-249K SF
1,272 141,538,261 $30,071,799,139 $ 212.46
6.99%
250K-499K SF
245 85,024,866 $24,469,456,661 $ 287.79
5.30%
>500K SF
110 88,208,678 $32,887,644,539 $ 372.84
4.27%
$50
$0 2013 1q
#
< 50,000 SF 7,103 81,639,422
Price/SF
Millions of Sales Volume Dollars
Sales Volume
$35,000
$0 2014 1q
2015 1q
2016 1q
Source: CoStar COMPS®
Source: CoStar COMPS®
Historical Price/SF Average
Historical Cap Rate Average
Based on Office Building Sales of 15,000 SF and Larger
Based on Office Building Sales of 15,000 SF and Larger
$310
8.5%
Cap Rate Percentage
$290
Dollars per SF
$270 $250 $230 $210
$170
Source: CoStar COMPS®
36
7.5%
7.0%
6.5%
$190
2013 1q
8.0%
6.0% 2014
2015 1q
2013 1q
2016
2014
2015 1q
2016
Source: CoStar COMPS®
CoStar Office Statistics
©2017 CoStar Group, Inc.
First Quarter 2017 – National
National Office Market Sales Activity
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©2017 CoStar Group, Inc.
CoStar Office Statistics
37
Personal Profile William A. Gary, MBA, MIM Principal & Managing Tenant/Buyer Representative Having successfully negotiated over 400 transactions during 29+ years in the industry, William Gary is a very, very experienced commercial estate professional. Described by his clients and peers as "direct, creative, organized and professional," Will has earned the wisdom that comes from having a diverse business background. Christopher P. Gallo of KPMG Peat Marwick noted that Will has "that rare quality of both detail and 'big picture' real estate expertise." With world-class learning experiences at Cushman & Wakefield, Frederick Ross Company (now Newmark Grubb Knight Frank), Iliff, Thorn & Company (now CBRE) and CoRE Partners, Will has pushed himself to learn his craft in the rough and tough arena of commercial real estate. Prior to entering commercial real estate, Will worked in Metro New York City in national brand advertising at Benton & Bowles (now Publicis) and in consumer goods marketing with Richardson-Vicks (now Procter & Gamble). Will has done a lot in the world of big-time, corporate business. A patient and detailed professional, Will prides himself in finding creative and effective solutions to problems. "He has a reputation of getting the job done, and done right," says Phil Dunne, Executive Director of the Texas Medical Foundation. With decades at the table as Tenant Rep, Will has honed his craft and become a very sharp, master negotiator. Superior negotiators are hard to find and Will has earned his stripes in this department. Will has received many honors in advertising and real estate. He received "Creative Deal of the Year" while at Cushman & Wakefield for a lease with Pet Expo, a pet superstore. The Flick Report named him to their "All-Star Line-Up" for transactions totaling 236,345 square feet. He has been a Commercial Broker in Austin, Texas, and in Metro Denver/Boulder, Colorado. Teresa Krieger, CFO of Applegate Group, a regional water resources engineering firm, said, “I have been working with William for over the past 10 years. He has been instrumental in finding us great new office space. He is an excellent negotiator and has very creative ideas when it comes to initial leases and lease renewals. William was also able to find a subtenant for some extra office space we had so that we could reduce our rental expenses until we relocated. He has so much knowledge in this area and is so effective, I will continue to use him and recommend him for commercial real estate transactions.” Performing at high levels for his clients is not new to Will. He won academic scholarships to attend Southern Methodist University ("SMU") in Dallas, Texas, and graduated with honors in Economics and an MBA in Marketing. Will also earned an MIM (Master of International Management) with highest honors at the highly renowned Thunderbird School of Global Management in Phoenix/Glendale, Arizona. ITRA MacLaurin Williams strongly believes in giving back to the community and has completed pro bono Tenant Representation projects for Colorado Preservation, Inc., a Montessori charter school, Al-Anon Service Center, Family Resource Center Association and Bicycle Colorado. In his leisure time, Will enjoys road cycling and ITRA MacLaurin Williams has proudly sponsored two amateur cycling teams, Rocky Mountain Road Club ("RMRC") in conjunction with Turin Bicycles and also COBRAS.
Be Represented. Not brokered.™ 9233 Park Meadows Drive • Suite 155 • Lone Tree, CO USA 80124-5426 • office 303.294.0277 • cell 303.901.1108
[email protected] • www.MacLW.com
