COMMERCIAL INVESTMENT REAL ESTATE
40 January | February 2018
gguy44
Jordan
Siemens
{
N O R T H E A S T
}
Boston Bucks
National Trend
in Retail
1.8 msf will be completed
Construction: Development rebounds
after a slower 2016 as builders complete
1.8 msf of retail space.
40 basis points
Vacancy: Absorption of new retail
space Decrease in vacancy shows that
vacancy contracts by 40 basis points to 2.7
percent, surpassing the uptick in new supply.
1.6% increase in asking rent
Rents: Slower rent growth will accom-
pany a higher pace of construction as
asking rents push higher to $20.25 psf
metrowide.
Q3 2017 Q2 2017 Q3 2016 Annual % Change
Vacancy rate
3.40% 3.40% 3.70% -5.70%
Availability rate
5.90% 5.20% 4.90% 9.80%
Asking lease rate
$0.63 $0.61 $0.54 16.70%
Leased square feet
2.03M 1.54M 3.5M -42.00%
Sold square feet
1.3M 0.9M 2.4M -45.60%
Net absorption
827,103 800,928 813,875 N/A
{
S O U T H W E S T
}
{
W E S T
}
Strong Demand
Drives Industrial
Absorption in
Portland, Ore.
Source: Kidder Mathews
Dallas Metro's Biggest Deal
Headquartered in Boston, Liberty Mutual Insurance made a
major regional investment with the $325 million purchase
of a 1.1-msf campus in Plano, Texas, from developer KDC.
Located in the mixed-use development of Legacy West, its
new regional operations hub has two 11-story office towers
above a four-level, 5,500-space car park, two rooftop gar-
dens, and an on-site medical center, and is expected to attract
up to 5,000 workers, according to the Dallas Business Journal.
A $3.2 billion, 250-acre development, Legacy West has
415,000 sf of retail, dining, residential, hotel, and office space. Liberty
Mutual expects the location will help it attract the right talent for its
business, according to John Cusolito, vice president at Liberty Mutual.
"It's all part of our strategy to attract and retain top talent," Cusolito says.
"We already have a strong and significant presence in Texas and are impressed
with the workforce in the state."
REGIONAL
O U T L O O K