Northeast Locations Absent in America’s Top 10 Commercial Office Markets

11 months ago 136

New York, Boston, Providence, Philadelphia, and Washington D.C. are among the largest cities successful the Northeast, with a plethora of towering bureau buildings populating their skylines. Ironically though, nary of these locations are listed successful the National Association of Realtors’ (NAR) Top 10 Commercial Office Markets for the 3rd 4th of 2021.

Instead, the South and West predominate the list, with places similar Austin, Boise, Chattanooga, and Omaha, positive 3 antithetic locations successful Florida–Daytona Beach, Palm Beach, and Miami. Also absent from the registry are metropolitan locations similar Chicago, Los Angeles, San Francisco, Denver, and Seattle.

NAR analyzed 390 commercialized real estate markets crossed the United States and concluded that the bureau assemblage continues to struggle, arsenic absorption rates and rents person declined successful larger, much populated areas. Meanwhile, tiny and medium-sized metropolitan regions person seen an summation successful bureau occupancy rates that outperform astir ample cities and the nationalist average.

The survey reviewed respective indicators, specified arsenic vacancy rate, asking rents, leasing activity, and quadrate feet nether construction.

“In general, we recovered that the Northeast cities similar New York, Boston, D.C., and Philadelphia had precocious vacancy rates, possibly owed to higher rents and radical continuing to enactment from location successful the post-COVID climate,” Gay Cororaton, elder NAR economist, told The Epoch Times. “In contrast, areas similar Myrtle Beach, Provo, and San Antonio ranked among the apical 10 bureau markets.”

Cororaton, who besides serves arsenic NAR’s manager of lodging and commercialized research, noted that Austin, Texas, had the highest leasing activity, astatine 1.9 cardinal quadrate feet and the highest mean income transaction terms astatine $584 per quadrate foot.

“Overall, determination has been a large migration into Texas from California and different areas wherever the outgo of surviving is higher,” she said. In contrast, Omaha, Nebraska, had the lowest mean income terms successful the 3rd quarter, astatine $122 per quadrate foot.

Epoch Times Photo (Courtesy of National Association of Realtors)

Miami, Florida, is 2nd to Austin successful presumption of leasing activity, astatine 1.2 cardinal sq. ft. While its vacancy complaint is higher compared to the different apical 10 markets—10.7 percent—it inactive remains little than the nationalist vacancy complaint of 12.4 percent. Office properties are much expensive, with the mean income terms astatine $383 per quadrate foot.

Myrtle Beach, South Carolina, showed the lowest bureau vacancy complaint among markets successful this database astatine conscionable 2.2. percent. With a choky vacancy rate, it besides has the 2nd highest mean asking rent maturation of 2.9 percent.

Boise, Idaho, was besides recovered to person 1 of the lowest vacancy rates astatine conscionable 4.7 percent, compared to 12.4 percent nationally.  Boise besides absorbed 895,328 quadrate feet of bureau space, the 3rd highest among the apical 10. The asking bureau rent successful Boise was up 1.6 percent, compared to a diminution of 0.4 percent crossed the country.

“Salt Lake City was not connected our apical 10 list, but it is considered arsenic a budding blistery bureau market,” added Cororaton. “Typically, the outgo of surviving is little successful the South and the West, compared to the Northeast, and some businesses and radical are continuing to migrate to these regions.”

Unexpectedly, Provo, Utah, absorbed 793,154 quadrate feet of bureau abstraction successful the past 12 months, with 852,792 of bureau abstraction leased. There, commercialized bureau abstraction is 1 of the slightest costly astatine $177 per quadrate foot.

Over 65 percent of respondents to the NAR survey reported much businesses leasing oregon moving into offices with smaller quadrate footage, and 70 percent indicated that companies were adopting enactment from location oregon staggered bureau schedules.

Paul Cauchi, main of commercialized for the Miami Association of Realtors, is not amazed that Miami, Daytona Beach, and Palm Beach were among NAR’s apical 10 bureau markets.

“The Northeast has ever been much congested and much expensive,” Cauchi told The Epoch Times. “People and concern owners alike are looking for much affordable spot to unrecorded and work.”

Cauchi besides credited Florida Gov. Ron DeSantis with keeping the authorities open.

“I deliberation this has had a affirmative interaction connected existent property successful general, and we’re seeing a batch of transplants from New York, New Jersey, and adjacent California,” helium said. “There’s a batch of caller tech companies, hedge funds, and concern firms locating successful Florida owed to little rents and taxes.”

Also noting that South Florida is becoming the planetary Latin American hub, Cauchi predicts the country volition proceed to beryllium an inviting destination for some residential and commercialized existent property opportunities.

Mary Prenon

Mary Prenon

Freelance Reporter


Mary T. Prenon covers existent property and business. She has been a writer and newsman for implicit 25 years with assorted people and broadcast media successful New York.

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