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Office Market Research/Reports

  1. Washington

    1. Seattle Office Market Report
      First Quarter 2017

      Compared with the rush of activity in a strong 4th quarter finish to 2016, the region's office market coasted through the first quarter of 2017. All trends held their course; vacancy falling, absorption positive, rents increasing, investors buying, but the changes were modest. The regional vacancy rate inched downward from 7.73% to 7.69% while 19 bps were shaved off the availability rate dropping that indicator to 10.82%. This on net absorption of only 43,375 s.f. in the quarter. The average asking rent was up in each of the submarkets, ranging from 1% in East King County to 5% in South King County. The net number of projects under construction fell to 19 in the quarter with the delivery of Amazon II (now called Day 1) and the Commons at Ballard. The total amount of space underway is 7.33 million square feet. Overall, these buildings are 55% pre-leased, including 44% of the 5,930,000 s.f. of speculative space. Part of these numbers is the first quarter announcement that Amazon will lease the 290,700 s.f. Tilt49 building nearing completion on the south edge of the South Lake Union neighborhood. Also this quarter, Kemper Development announced that the Lincoln Square II office building is 90% leased to 11 tenants with additional leases in progress. This leaves only the 929 Tower with significant blocks of available space out of the three towers built so far this cycle.

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

    1. Portland Office Market Report
      First Quarter 2017

      Steady leasing activity, rising rental rates, and increasing demand from technology sector companies reaffirmed the strength of the Portland office market during the first quarter of 2017. Vacancies ticked up to 8.2% marketwide, following 74,977 s.f. of negative net absorption, but landlords marketing creative office spaces were able to quickly secure replacement tenants. The Pearl District continues to attract an array of tech-sector firms, and a pair of cloud-based software firms landed there this quarter on leases of about 20,000 s.f. each. Portland office assets retained their appeal to national investors, drawing buyers from Southern California and Chicago this quarter, as the average price per square foot climbed to $252.

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

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

      The East Bay office real estate market made headlines throughout the first quarter, as strong demand spurred a new wave of development activity and kept rental rates on an upward trajectory. Developers will soon break ground on two office towers in Downtown Oakland, the CBD's first large-scale deliveries of the cycle, after securing anchor tenants in Blue Shield and the University of California's Office of the President. Those projects will add large-block availabilities that could attract technology sector tenants to Oakland, as will the Uptown Station renovation, initially targeted for Uber, which pulled back from its commitment as it builds a campus in San Francisco's Mission Bay. Vacancies increased to 7.9% marketwide this quarter, after 141,243 square feet of negative net absorption, but should revert toward cycle lows as those spaces are backfilled. Rental rates increased to a marketwide average of $2.78 fully serviced, but Class A properties in the CBD were asking $4.50 or higher, and rents overall are up by more than 25% year over year. Significant demand pressure coupled with a lack of existing availabilities and a strong economy is likely to keep vacancies low and rates rising into the coming quarters.

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

      The Orange County office market continued to improve in Q1 2017, as pricing continued to increase, and vacancy was stable, even as increasing amounts of available space come onto the market. We anticipate that positive absorption shall progress and occupancy costs will continue to increase, but new deliveries in the southern half of the county may apply more upward pressure on vacancy. Even so, 2017 portends to be another year of growth.

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

      The Peninsula office market continued to send mixed signals as the fourth quarter began, but several indicators point towards a healthy market as we head into 2017. Leasing activity for existing space was relatively sluggish, but the county's vacancy rate remained stable as existing tenants and landlords were reluctant to put space back on the market. While speculation of a declining market lingered throughout the year, several fourth quarter pre-leases in Redwood City, San Mateo, and Burlingame suggested that demand for space remains robust.

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

      After ending 2016 on a high note, with record investment activity and widespread absorption gains, the Sacramento office market relaxed slightly during the first quarter of 2017. Office properties marketwide saw 166,745 s.f. of negative net absorption, increasing total vacancies to 11.4%, though the downtown area held steady at 8.6%. Most large lease and investment transactions during the first quarter took place in suburban submarkets, as tenants searching for more space, on-site parking, and lower rents considered alternatives like Natomas, Point West, and Roseville.

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

      The San Diego Office market started the year with strong leasing activity, high net absorption and increasing rental rates. The total vacancy rate in the overall San Diego market is 10.3%, a decrease of 110 basis points from this time last year. The San Diego County unemployment rate sits at 4.5%, a decrease of 20 basis points from a year ago, and we expect the strong local economy and increasing job growth to drive the real estate market in 2017.

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

      The San Francisco office real estate market is positioned for substantial growth in the coming quarters, as tech sector giants aspire to attract elite industry talent by forming urban campuses in the city. While San Francisco properties saw 387,145 s.f. of negative net absorption during the first quarter, strong tenant demand should see the newly vacated spaces backfilled soon. At least a dozen firms were searching for 100,000 or more square feet at quarter's end. Asking rents have steadied over the past year, at averages of $72.40 for Class A Financial District product, $66.01 for Class B offerings, and $67.44 for creative Class C spaces.

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

      The Silicon Valley Office market got off to a healthy start to 2017, with heavy activity across most categories that it will look to build on throughout the year. Demand for office space remains robust as economic performance in the region still leads the nation. Santa Clara County's unemployment rate remained low at 3.5% from November to the end of February, per the California Employment Development Department. There is still some uncertainty about how President Donald Trump's policies will impact Silicon Valley, especially with regard to the many immigrant workers. Overall, office product enjoyed a strong first quarter, and indicators point to Silicon Valley remaining in a mode of steady growth.

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

    1. Phoenix Office Market Report
      First Quarter 2017

      The Phoenix office real estate market experienced over a million square feet of positive net absorption, strong leasing activity and steady rental rates during the first quarter of 2017. Total vacancy decreased to 15.9%, a 120 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 4.5%, only a 10 basis point decrease from the 4.6% recorded this time last year.

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