July | August | 2016 CCIM.com
-68%
-45%
-10%
-43%
+17%
-25%
-80% -60% -40% -20% 0% 20% 40%
Hotel
Industrial
Office
Retail
Multifamily
Total
Sector
Percentage change YOY
E A S T
W E S T
Sublease Office Trend
Grows in Bay Area
San Francisco added 1 million sf of sublease office space in the last six months, to bring its sublease office total to
2.3 msf, the largest since 2009, according to Kidder Mathews. In addition, about half of the 20 largest listings have been
on the market for more than 90 days as of the end of 1Q16. Charles Schwab is the largest sublessor with 300,000 sf,
followed by Dropbox with 200,000 sf. "Subleasing activity can indicate a healthy, dynamic tech sector, rather than a
contracting one, but coupled with signs of tighter venture-capital funding, it is a trend worth monitoring," says the Kidder
Mathews report.
"With 9.2 msf of new deals executed, 1Q16 industrial leasing topped 4Q15,
which had been New Jersey's strongest in over eight years. Leasing demand
in New Jersey has now risen each of the last five quarters."
— Jason Price, Cushman & Wakefield research director
N A T I O N A L
2016's Tough Start
CRE sales volume, 1Q16
Source: Cushman & Wakefield
M I D W E S T
Better than Average
Lowest forecasted year-end retail vacancy rate for Midwestern cities
U.S. 5.9%
Louisville, Ky. 5.0%
Minneapolis-St. Paul 5.4%
Cincinnati 5.8%
Source: Marcus & Millichap
S O U T H
Multifamily Growth
Concentrates in South
Of the 330,000 multifamily units forecast to come online this year,
the majority are located in 12 southern and southwestern markets,
according to CoStar and Fannie Mae data. Texas will see the greatest
concentration of new stock, with Houston, Dallas/Fort Worth,
and Austin on track to deliver 27,553, 21,038, and 9, 696 units
respectively. Atlanta, Charlotte, Nashville, and South Florida will also
gain between 7,000 to 11,000 units each in the next 12 months.
UVAconcept/Thinkstock