Commercial Investment Real Estate

JAN-FEB 2018

Commercial Investment Real Estate is the magazine of the CCIM Institute, the leading provider of commercial real estate education. CIRE covers market trends, current developments, and business strategies within the commercial real estate field.

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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

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