COMMERCIAL INVESTMENT REAL ESTATE
6 November | December 2017
MARKET
T R E N D S
Top 10 Markets for Office
Reflecting Job Growth
Cities in the South and Southwest dominate the rankings.
Q2 2017 Office-Using Jobs, YOY Growth %
Source: CBRE Research
Source: Marcus & Millichap
• Demographics Support Suburban
Demand: Nearly 66% of all households
are located in the suburbs.
• Suburbs Evolve for Millennials:
Many suburban offices are transforming
their environments through walkable
spaces, entertainment, and retail and
restaurant options.
• Suburban Absorption Strengthens:
Vacancy is lower than the national rate
at 15 percent vs. 16 percent, and net
absorption has been vigorous.
• Cap Rates and Pricing Reflect Upside:
First-year returns up to 100 basis points
higher show the potential for higher net
operating incomes.
Atlanta
Orlando, Fla.
Dallas
Charlotte, N.C.
Raleigh, N.C.
Nashville, Tenn.
Phoenix
Kansas City, Mo.
Portland, Ore.
Tampa, Fla.
5.09%
5.04%
4.65%
4.22%
4.03%
3.75%
3.43%
3.40%
3.06%
3.05%
Private Equity
Dominates U.S.
Hotel Investors
Source: JLL
Caiaimage/Martin
Barraud/Getty
Images
Resurgence of
Suburban Office
Private equity
Public REITs
Developer
Hotel owner/operator
Other (e.g., high net worth
individuals and corporations)
Nontraded REITs
Institutional investor
2%
4%
7%
12%
14%
36%
25%