43
May | June | 2015 CCIM.com
Alloy
Photography/Veer
Á
W E S T
Offi ce Investment Leaders
San Francisco, San Jose, Calif., and Seattle-Tacoma, Wash.,
topped Marcus & Millichap's 2015 National Of ce Property
Index as tech f rms keep of ces f lled and conf ned develop-
ment keep tenants' space options tight. However, that may
change as development ramps up big time in 2015.
3.5 msf
950,000 sf
1.6 msf
560,000 sf
5 msf
3.8 msf
San Francisco San Jose Seattle-Tacoma
2014 new space 2015 new space
Springfield, Mo.
Quad Cities, Iowa, Ill.
Dayton, Ohio
1.1%
0.9%
0.4%
Ä
E A S T
New York
Hospitality
Of shore investors traded tro-
phy of ce buildings for lux-
ury hotels in 2014, spending
$1.9 billion in New York City
hotel assets in 2014, according
to JLL. T at inbound foreign
investment accounted for
58 percent of the city's hotel
transaction volume, up from
12 percent in 2013. Along
with Chinese investors, buyers from Qatar, Bahrain, Kuwait,
Malaysia, and Singapore acquired properties. T e strong activ-
ity pushed hotel cap rates down to 5.5 percent from 6 percent in
2013. JLL expects foreign hospitality investment in New York
to reach $3 billion this year.
NYC Hotel Fundamentals
Occupancy ................................ 85%
Average Daily Rate ............ $263.45 ↑ 2% YOY
Revenue per available room
(RevPAR)............................... $223.53 ↑ 2.1% YOY
Source: HotelNewsNow.com
N A T I O N A L
The Next
Big Thing
Nashville, Tenn., East Bay, Calif., Raleigh-Durham, N.C., Denver,
and Salt Lake City — dubbed the NERDS — are the next big thing
for corporate tenants and of ce investors, according to a recent JLL
report. T e combination of an af ordable housing and a big-city
vibe without all the hassle has attracted a growing population of
educated millennials. Since 2010, these cities have grown at twice
the national rate and in the past three years the gross metropoli-
tan product has increased 14 percent. For corporations looking to
relocate or open additional of ces, class A of ce space averages 35
percent below national average; for investors, those trophy proper-
ties trade at cap rates around 5.5 to 7.5 percent, and about $200 to
$400 psf below national averages.
M I D W E S T
Top Markets
in Retail Closings, 4Q14
Store closings as a percentage of total retail inventory
Ä
Source: ICSC/PNC Real Estate