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March | April | 2015 Commercial Investment Real Estate
S O U T H W E S T
Houston Industrial, YOY
METRIC YE2014 YE2013
Net absorption 10.2 msf 7.4 msf
Vacancy 4.8% 5.3%
Rent $6.20 $5.96
New supply 8.7msf 8.0 msf
Under construction 8.0 msf 4.4 msf
Source: Colliers International
REGIO NAL
OUTLO O K
W E S T
Tech Drives LA
Offi ce Demand
Tech is the sector that won't stop. Af er
claiming the northern California mar-
kets, it is driving new of ce demand
in Los Angeles, where companies that
wouldn't have considered that location
f ve years ago are moving in, accord-
ing to Cushman & Wakef eld. Market
fundamentals have surpassed pre-
recession levels, with overall vacancy
dropping to 16.1 percent in 4Q14,
the lowest level since 2008. Leasing
activity increased 5.5 percent YOY
to 13.6 msf, the highest total since
2007. "Overall absorption of 3.8 msf
exceeded gains from the past 14 years
and of set the losses from both 2010
and 2011," reports C&W.;
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N O R T H
Off-Target in Canada
Target Corp.'s decision to close its 133 Canadian
stores will return about 20 msf of retail space to
the market along with about 4.8 msf of distribution
space, according to the Toronto Star. Part of Target's
problem? Bad locations. The company bought a
number of leaseholds in older malls in second-
ary and tertiary locations. Most of those malls will
probably be forced to close, market watchers say,
as other tenants suffer from the loss of Target's foot
traffi c.
Á
Washington, D.C.'s Big Deal
Washington, D.C.'s offi ce market got a fourth-quarter shot in
the arm with the $392 million sale leaseback of PNC Place to
TIAA-CREF and Norges Bank Investment Management from
PNC Financial Services Group. The property sold for $1,075
psf, a record for the D.C. offi ce market, which totaled $1.6
billion in offi ce transactions for 4Q14, according to JLL, ending
2014 on a high note. The high-water mark was short-lived as
Jamestown Properties purchased another D.C. offi ce trophy,
America's Square, for $500 million or $1,083 psf in February.
EAST
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