I attended the Bay Area Economic Development Council’s luncheon today. Before the speaker our table began to discuss the future of office space. Examples like the recent ‘hotelling’ concept were brought up, as was the new ‘rejiggered’ version being referred to as ‘co-working.’ I mentioned this study that Herman Miller released on office space utilization [...]
Read more →Quick update on hospitality – which seems to be regressing a bit from an optimistic start of the year to a moderate growth from 2011. More specifically, at the national level occupancy grew 2.3% YoY (for the week ending dFeb 25th) to an average of 61%, the average daily rate grew 4.6% to $103.84 and [...]
Read more →During a lunch earlier this week the topic of commercial real estate advertising came up. There are the online sources of ILS like LoopNet or CoStar, online flyer and placement ad services like RedNews, Bisnow, Business Journals, and then the traditional sources like street or window signage and periodicals. Real estate overall understands how to [...]
Read more →Since we addressed leasing activity and net absorption of the office classes last week – I thought it would be interesting to see how lease deal volume and rents compared on a quarterly basis. I had initially run deal volume against leasing activity to verify that they tracked, and they actually match up seamlessly across [...]
Read more →I wanted to post a quick update on hospitality recovery. The 2012 occupancy rate seems to have settled between 2011s improvement and the pre-recession (2000 to 2007) median occupancy rate – a 5.5% y-o-y improvement. All things considered, that is still good news. But what’s better is that RevPAR (revenue per available room) is up [...]
Read more →Often when we talk about the office space market we group classes together. And of course we all know that the classes, especially between A and B are subjective – there is an A that should be a solid B, or a B that should be an A. But more often than not, the market [...]
Read more →Calculated Risk has a timely post, mining out of the Q4 GDP advance some interesting nuggets in regards to CRE. We covered hospitality last week, but you can clearly see the sharp decline in office, retail and hospitality investments after their peaks and the recession. Specifically hospitality investment is down 80% from its 2008 peak, [...]
Read more →Tenants working with brokers often are presented with financial spreadsheets breaking down potential deals or the financial implications of a few potential sites for lease. Usually somewhere close to the bottom, circled in red or highlighted (like the example on the right), is a dollar figure listed as the ‘net present value’(NPV) of the deal(s). [...]
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