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Office Market Research/Reports

  1. Washington

    1. Seattle Office Market Report
      Second Quarter 2017

      The region's office market saw a wide variety of activity in the second quarter. Leasing activity was strong, led by the announcement that f5 Networks will lease all 28 office floors in The Mark; several buildings were delivered; a couple more got started; and an array of projects were sold, including two major South Lake Union buildings and an increasing number of suburban investment sales in the Eastside. This strong performance is pushing against the national slowing of commercial real estate investment and leasing. The reason for this is jobs, high wage tech jobs, creating demand for office space, but also supporting expansion in all of the other commercial real estate categories.

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      Second Quarter 2017 Seattle Office Market Report
      First Quarter 2017 Seattle Office Market Report
      Fourth Quarter 2016 Seattle Office Market Report
      Third Quarter 2016 Seattle Office Market Report
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  2. Oregon

    1. Portland Office Market Report
      Second Quarter 2017

      Portland's growing technology sector took center stage during the second quarter, as 282,334 square feet of positive net absorption yielded cycle-low vacancies in much of the market. Average asking rental rates rose to $24.77, fully serviced, but the upper floors of Class A CBD towers and creative office spaces that appealed to tech tenants were both achieving rents in the mid-$30s NNN. Institutional investors continued to bet big on Portland's office assets, expecting further growth in office-based sectors and a strong local economy to keep rental rates rising as new inventory comes on line.

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      Second Quarter 2017 Portland Office Market Report
      First Quarter 2017 Portland Office Market Report
      Fourth Quarter 2016 Portland Office Market Report
      Third Quarter 2016 Portland Office Market Report
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  3. California

    1. Oakland/East Bay Office Market Report
      Second Quarter 2017

      After reaching historically low vacancies in 2016, the East Bay office real estate market has paused to catch its breath during the first half of this year, finding a better balance between demand and supply. East Bay office properties reported 324,551 square feet of negative net absorption during the second quarter, and the vacancy rate increased to 7.1% in Oakland CBD and 8.8% marketwide. Those levels are consistent with a healthy economy and office market, and demand remains strong, particularly for creative spaces and midsize offices in the 10,000-25,000 square foot range.

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      Second Quarter 2017 Oakland/East Bay Office Market Report
      First Quarter 2017 Oakland/East Bay Office Market Report
      Fourth Quarter 2016 Oakland/East Bay Office Market Report
      Third Quarter 2016 Oakland/East Bay Office Market Report
    2. Orange County Office Market Report
      Second Quarter 2017

      The Orange County office market continued to improve in Q2 2017, as prices continued to increase, vacancy remained stable, and the amount of available space in the market rose. We expect the ongoing trend of positive absorption in the market to continue, along with consistent increases in occupancy costs. With larger building deliveries on the way in the Orange County market, the bump in inventory may apply some upward pressure on vacancy in the short run. Nonetheless, with strong demand in the market, we expect further growth in the second half of 2017.

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      Second Quarter 2017 Orange County Office Market Report
      First Quarter 2017 Orange County Office Market Report
      Fourth Quarter 2016 Orange County Office Market Report
      Third Quarter 2016 Orange County Office Market Report
    3. Peninsula/San Mateo County Office Market Report
      Second Quarter 2017

      The Peninsula office market slowed down during the second quarter, but continued to see steady leasing activity, which produced 50,987 square feet of positive net absorption. San Mateo and Redwood City continue to attract tenants from overpriced markets in San Francisco and Silicon Valley, keeping the county's vacancy rate stable. Rental rates also remain firm as steady tenant demand preserves a healthy market. The amount of available sublease space, which is often used as a barometer for the markets condition, actually declined over the previous quarter. The market could potentially soften by the end of 2017, but several indicators currently point towards a stabilized market.

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      Second Quarter 2017 Peninsula/San Mateo County Office Market Report
      First Quarter 2017 Peninsula/San Mateo County Office Market Report
      Fourth Quarter 2016 Peninsula/San Mateo County Office Market Report
      Third Quarter 2016 Peninsula/San Mateo County Office Market Report
    4. Sacramento Office Market Report
      Second Quarter 2017

      The Sacramento office real estate market kicked back into gear during the second quarter, reporting robust leasing and investment activity, along with 203,906 s.f. of positive net absorption. Vacancies fell to 11.3% marketwide, down 100 basis points from this time last year, as both downtown and suburban submarkets tightened amid rising demand and steady inventory. The largest leases continued to take place in the suburbs, as tenants searching for spacious offices, on-site parking, and lower rents settled on Folsom, Roseville, and Natomas. Asking rents held at $1.78 marketwide, but ranged from $2.42 downtown to $1.26 in Carmichael/Fair Oaks, with the suburban submarkets reporting an overall average of $1.71. More than 2 million s.f. of suburban Sacramento office real estate changed hands in investment sales, as buyers reaffirmed the desirability of the area's single-tenant office campuses. A strong local economy continued to provide ample demand in the market. Overall employment in Sacramento MSA grew by 7,900 jobs year-over-year, and office-based sectors like financial activities and health services showed some of the largest yearly employment gains, suggesting further growth in the market during the coming quarters.

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      Second Quarter 2017 Sacramento Office Market Report
      First Quarter 2017 Sacramento Office Market Report
      Fourth Quarter 2016 Sacramento Office Market Report
      Third Quarter 2016 Sacramento Office Market Report
    5. San Diego Office Market Report
      Second Quarter 2017

      The foundation of San Diego's office market is sturdy. A strong employment base buoyed by tech, life sciences, and healthcare provides a backbone of stability. Several top universities, from UC San Diego to the University of San Diego, provide a talent pool of job-seeking graduates. According to Moody's Analytics, the growth in the working-age population in San Diego is expected to top all West Coast metros over the next several years, and San Diego is home to one of the largest percentages of millennials in the United States. With its prime location on California's southern coast, its geographic constraints, and steady demand, vacancies here are holding steady. Additionally, the amount of available sublet space is holding firm just below the five-year average.

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      Second Quarter 2017 San Diego Office Market Report
      First Quarter 2017 San Diego Office Market Report
      Fourth Quarter 2016 San Diego Office Market Report
      Third Quarter 2016 San Diego Office Market Report
    6. San Francisco Office Market Report
      Second Quarter 2017

      With several new office towers rising and up to a dozen 100,000 s.f. tenants searching for space, the San Francisco office real estate market remains exceptionally strong. Occupancy levels were unchanged during the second quarter, which saw 16,679 square feet of positive net absorption, but the market added two more leases in excess of 100,000 s.f., bringing the 2017 total to eight. Asking rent trends varied by the type of space being marketed, with creative offerings seeing up to a 5% year-over-year rise in rents while traditional offices trended slightly downward, prompting Class A landlords to offer substantial tenant improvements to attract a wider range of users. Overall, Class A Financial District spaces averaged $70.63, Class B offerings were at $65.90, and Class C creative product was marketed for $67.38.

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      Second Quarter 2017 San Francisco Office Market Report
      First Quarter 2017 San Francisco Office Market Report
      Fourth Quarter 2016 San Francisco Office Market Report
      Third Quarter 2016 San Francisco Office Market Report
    7. Silicon Valley Office Market Report
      Second Quarter 2017

      The Silicon Valley Office market realized positive, but small growth during the second quarter of 2017. Demand for office space remains robust as economic performance in the region still leads the nation. Santa Clara County's unemployment rate dropped significantly from 3.5% in February to 2.9% in May, per the California Employment Development Department, and Silicon Valley will likely keep this positive job growth trend going. Overall, the market for office product remained steady during the second quarter and indicators point to similar trends in the coming quarters.

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      Second Quarter 2017 Silicon Valley Office Market Report
      First Quarter 2017 Silicon Valley Office Market Report
      Fourth Quarter 2016 Silicon Valley Office Market Report
      Third Quarter 2016 Silicon Valley Office Market Report
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  4. Arizona

    1. Phoenix Office Market Report
      Second Quarter 2017

      The Phoenix office real estate market experienced over 600,000 square feet of positive net absorption, leasing activity was nearly two million square feet, and rental rates continued to increase during the second quarter of 2017. Total vacancy decreased to 16%, a 70 basis point decrease from this time last year. The strong local economy and job creation should drive real estate market growth for many quarters to come. The Phoenix unemployment rate sits at 4.3%, a 10 basis point decrease from the 4.4% recorded this time last year.

      Downloads
      Second Quarter 2017 Phoenix Office Market Report
      First Quarter 2017 Phoenix Office Market Report
      Fourth Quarter 2016 Phoenix Office Market Report
      Third Quarter 2016 Phoenix Office Market Report
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