Cresa’s Post

After a prolonged period of increased availability, Chicago's Class A office space has finally experienced a slight dip. This is the first time since the pandemic began that we're seeing a decrease, signaling a possible turnaround and a more positive outlook for the city's commercial real estate market. It's a hopeful sign that businesses are gradually returning to the office, reigniting demand for premium office space. However, it's important to note that we're not out of the woods yet. The dip is only marginal and there's still a long road ahead to full recovery. But this shift does represent an important step in the right direction. It's a testament to the resilience of Chicago's business community and the enduring appeal of its Class A office spaces. Let's keep the momentum going! #ChicagoRealEstate #OfficeSpace #MarketRecovery

CLIENT NEWS: Ask real estate insiders what the most challenged sector is now, and most would say office due to the advent of remote and hybrid work schedules. But that hasn’t kept some investors from going all in and funding pricey upgrades for office buildings to lure tenants willing to pay top-dollar rents. The strategy has already proven successful in some South Florida buildings. And while more office investors have taken notice, not all buildings are suitable for costly renovations. Most office markets nationwide are in dire straights, with the value of downtown office towers plummeting more than 50% in major cities. Yet, the scenario is quite different in South Florida due to the onslaught of companies and executives migrating to the area since the onset of the Covid-19 pandemic. READ MORE: https://t.ly/uqbJz

CLIENT NEWS: Ask real estate insiders what the most challenged sector is now, and most would say office due to the advent of remote and hybrid work schedules. But that hasn’t kept some investors from going all in and funding pricey upgrades for office buildings to lure tenants willing to pay top-dollar rents. The strategy has already proven successful in some South Florida buildings. And while more office investors have taken notice, not all buildings are suitable for costly renovations. Most office markets nationwide are in dire straights, with the value of downtown office towers plummeting more than 50% in major cities. Yet, the scenario is quite different in South Florida due to the onslaught of companies and executives migrating to the area since the onset of the Covid-19 pandemic. READ MORE: https://t.ly/uqbJz

If a company takes space in one of the priciest office buildings on the market, will it actually make their employees come to work more often? The simple answer is yes, reported Bisnow. "In 25 Manhattan buildings that signed at least three leases for $100 per SF or more last year, foot traffic is approximately 10% higher than the rest of Manhattan’s office stock, according to an analysis by Placer.ai provided to Bisnow."   "The desire to find an office space that employees will want to use has drawn more companies to the most expensive buildings, with 196 Manhattan office leases signed last year at $100 per SF or more, an all-time high, according to JLL.  The new foot traffic data validates the flight-to-quality narrative that brokers have repeated since the onset of the pandemic." https://lnkd.in/gTUqrTmF #unitedstates #office #flighttoquality #newyork

After the first three weeks of the new year, YOUR Cincinnati Office Team has never been busier. While the number of deals in the market is encouraging, they are still chalk full of twist and turns to navigate. One trend we are seeing consistently is office tenants looking for high end, move in ready space. In the past, these requirements for move in ready spaces were often tied to timing with a group needing to occupy space quickly. Timing is still a component to these requirements, particularly with tenants who had a large percentage of their workforce working from home and now are looking to get these people back together. More impactful than timing is the fact many tenants know they need new/different space, but the finite details of what they need are somewhat ambiguous. The result is tenants know they need something but need to see it and walk it to know if the space will be a good fit for them. Very few tenants know exactly what they need to the point where they can make all the little design and construction decisions needed to make the finished product match to perceived need. Much like how most home buyers struggle to build their dream home and would prefer to walk through existing potential dream homes until they find the right fit for their family. Many office tenants now need to see it and tour it before they can feel confident a space will work for their organization. Build it and they will come. Scott Yards, Chris Vollmer, Jr.

More From the Local Business Times: Downtown or the suburbs: Why there's no clear answer for office-space decisions Suburban office submarkets often are perceived as preferred sites for tenants post-pandemic. That's not necessarily the case.

The Dallas office space market, like many across the country, is adjusting to a post-pandemic world. While the city boasts a strong economy and growing population, hybrid work models and increased construction have created unique dynamics for businesses seeking office space. Let’s dive into the current landscape, exploring rental rates, vacancy rates, and what it means for tenants. #dallas #officespace

A CBRE study discussed in the attached Globe article reports that Boston increased its net occupancy in office space in the third quarter. While the increase was minimal, it was the first time the bleeding had stopped in three years. In addition, those returning to Boston offices is at its highest level in four years. That is good news for Boston restaurants and retailers. However, Boston lags far behind Washington and Manhattan in the recovery. Although Avison Young points to a lack of requirements for workers to return to the office, there are other factors to consider, including an unreliable transit system and the time lost in traffic jams going to and from a downtown office, both of which making staying at home a more productive alternative for many. In addition, the amount of vacant space remaining on the market for direct leasing and subleasing remains quite large, with significant other space available but not officially listed for sublease. With that being said, it is nice to have good news on a beautiful Friday going into a Columbus Day Weekend. https://lnkd.in/eC9chkm9

Recent signs indicate that companies are gaining confidence in their office-leasing decisions, prompting an increase in activity across several U.S. markets. This uptick in demand is driven by a desire for flexibility, as companies reassess their space needs post-pandemic. Many are prioritizing Class A office space, especially in high-profile buildings that offer modern amenities and prime locations. However, with limited availability of new trophy developments—only 28 million SF of new office space expected to deliver in 2024—tenants are also exploring Class B options, which are seeing a renaissance as competition intensifies. As businesses look to secure longer lease terms, they seek arrangements that allow for adaptability, reflecting a cautious approach in an evolving market landscape. #officespace #leasing #cre #commmercialrealestate https://lnkd.in/eTtCHbs3

As we enter the fourth year since the pandemic began, the Boston office market is still struggling to find its bottom. Historically low demand combined with spiking supply of quality office space adds up to a perfect storm for landlords, and the perfect opportunity for tenants. In her latest article, Hughes Marino Boston vice president, Hannah McNeil dives into the Boston office market, and shares top industry trends she’s seeing with her clients. Whether your lease expires in one year, or five years from now, we encourage you to give her article a read to see how this current market environment can benefit you! #Boston #OfficeMarket #TenantRepresentation