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Office Market Research/Reports

  1. Washington

    1. Seattle Office Market Report
      Third Quarter 2018

      The regional office market continues to experience healthy metrics, which have continued the trend of steady vacancy decline, moderately increasing rents, and reasonable levels of new construction into the 3rd quarter of 2018. Seattle remains high on the list of desirable office investment markets for institutions, targeting the Seattle and Bellevue CBDs as well as South Lake Union. Over the last quarter, regional office vacancy dropped to 6.69%, down from 6.84% last quarter, a 10-year low.

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      Third Quarter 2018 Seattle Office Market Report
      Second Quarter 2018 Seattle Office Market Report
      First Quarter 2018 Seattle Office Market Report
      Fourth Quarter 2017 Seattle Office Market Report
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  2. Oregon

    1. Portland Office Market Report
      Third Quarter 2018

      Strong economic fundamentals such as near historical low levels of unemployment continue to drive development of the fast growing Portland office market. Direct vacancy dropped 20 basis points, and is far lower than the national average due to strong tenant demand outstripping the current supply. This is driving major development projects that are expected to increase the inventory of Portland's office market by 2.5% by the end of 2018. Q3 experienced less construction deliveries than in Q2, but the cumulative deliveries expected at the end of this year and beginning of next year should provide the additional build-to-suit space that many tenants in the market are looking to occupy.

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      Third Quarter 2018 Portland Office Market Report
      Second Quarter 2018 Portland Office Market Report
      First Quarter 2018 Portland Office Market Report
      Fourth Quarter 2017 Portland Office Market Report
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  3. California

    1. Inland Empire Office Market Report
      Third Quarter 2018










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      Third Quarter 2018 Inland Empire Office Market Report
      Second Quarter 2018 Inland Empire Office Market Report
      First Quarter 2018 Inland Empire Office Market Report
    2. Los Angeles Office Market Report
      Third Quarter 2018

      Since 2015, benefitting from massive infusions of capital from institutional investors and VC firms, the Los Angeles metro in general and the Los Angeles office market in particular has been undergoing a conspicuous and much needed transformation and renaissance. This renaissance only continued to wax in Q3 of 2018. Using any metric, the conclusion can't be gainsaid: the performance of the LA office sector has been outstanding.

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      Third Quarter 2018 Los Angeles Office Market Report
      Second Quarter 2018 Los Angeles Office Market Report
      First Quarter 2018 Los Angeles Office Market Report
    3. Oakland/East Bay Office Market Report
      Third Quarter 2018

      The inner East Bay Office real estate market remained relatively stable in the third quarter of 2018, with vacancies staying put at 6.7%, and 200,654 s.f. of positive net absorption. Kidder Mathews represented the largest office lease transaction of the quarter, with Dynavax's lease of 57,778 s.f. in the Emeryville laboratory/office property at 5959 Horton Street. Rental rates increased slightly by 1.13% quarter-over-quarter, but are up 10.19% year-over-year. New deliveries totaled 265,000 s.f., but the development pipeline remains full with 1,171,261 s.f. still under construction. Despite climbing rents and low vacancy, the East Bay continues to attract value focused office tenants being priced out of the San Francisco market.

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      Third Quarter 2018 Oakland/East Bay Office Market Report
      Second Quarter 2018 Oakland/East Bay Office Market Report
      First Quarter 2018 Oakland/East Bay Office Market Report
      Fourth Quarter 2017 Oakland/East Bay Office Market Report
    4. Orange County Office Market Report
      Third Quarter 2018

      The Orange County office market continues to remain robust in 3Q18 in spite of the heavy influx of new supply in previous quarters. With a prime location along the coast, accompanied by stunning weather year round, Orange County has remained appealing for many companies. Presently, over 200 Fortune 500 companies reside within the Orange County office market along with several top universities providing an abundance of talented job-seeking graduates. The current unemployment rate according to the State of California's Employment Development Department sits at 3.1%, 120 basis points lower than the state's average of 4.3%. Additionally, total non-farm employment increased by 0.7% year over year, or 11,000 jobs between August 2017 and August 2018.

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      Third Quarter 2018 Orange County Office Market Report
      Second Quarter 2018 Orange County Office Market Report
      First Quarter 2018 Orange County Office Market Report
      Fourth Quarter 2017 Orange County Office Market Report
    5. Peninsula/San Mateo County Office Market Report
      Third Quarter 2018

      The San Francisco Peninsula continues to benefit from a strong economy and job growth, as unemployment rates are at a low 2.3%, compared to the national average of 3.7%. At the end of the third quarter, direct vacancy rates rose slightly to 8.4%, with average rental rates also increasing to $5.05/s.f. fully serviced. The upwards increase in price is partially attributed to higher-quality product arriving to the market and commanding higher lease rates. With nearly 3.2 million s.f. of office space under construction, San Mateo County remains a favorable location for tenants seeking a Bay Area footprint.

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      Third Quarter 2018 Peninsula/San Mateo County Office Market Report
      Second Quarter 2018 Peninsula/San Mateo County Office Market Report
      First Quarter 2018 Peninsula/San Mateo County Office Market Report
      Fourth Quarter 2017 Peninsula/San Mateo County Office Market Report
    6. Sacramento Office Market Report
      Third Quarter 2018

      The office real estate market in the greater Sacramento area continued with a surge of leasing activity in the third quarter. With the continuous decline in direct and overall vacancy, the slight rise in lease rates is mirroring the demand of quality office space on the market. According to an article published by Costar, metro vacancy has dropped below the national level for the first time since 2004.

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      Third Quarter 2018 Sacramento Office Market Report
      Second Quarter 2018 Sacramento Office Market Report
      First Quarter 2018 Sacramento Office Market Report
      Fourth Quarter 2017 Sacramento Office Market Report
    7. San Diego Office Market Report
      Third Quarter 2018

      While demand for office space remains steady in the San Diego market, the market took a little breather during the third quarter with continued signs of a tightened market as asking rents climb to an all-time record high and vacancy hovering at the record low from year end 2017. However, the foundation of San Diego's office market remains sturdy, with a strong employment base sustained by tech, life sciences and healthcare providing a backbone of stability. We anticipate the office market will continue to persist and grow in demand, albeit at a slower pace than previous years in the cycle.

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      Third Quarter 2018 San Diego Office Market Report
      Second Quarter 2018 San Diego Office Market Report
      First Quarter 2018 San Diego Office Market Report
      Fourth Quarter 2017 San Diego Office Market Report
    8. San Francisco Office Market Report
      Third Quarter 2018

      Large blocks of space in the San Francisco office market continued to be snatched up in the third quarter, with PricewaterhouseCoopers, Amazon, and Splunk all signing on to occupy over 100,000 s.f. each next year. Additionally, Atlassian finally moved into the seven floors they preleased at 350 Bush Street, absorbing 145,215 s.f. in the third quarter. Q3 saw over 250,000 s.f. of construction deliveries in the very active SOMA submarket. Despite the delivery of a total of 693,063 s.f. of new inventory, direct vacancy dropped slightly to 4.6% for the second straight quarter, further highlighting the strong demand for office property in the city.

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      Third Quarter 2018 San Francisco Office Market Report
      Second Quarter 2018 San Francisco Office Market Report
      First Quarter 2018 San Francisco Office Market Report
      Fourth Quarter 2017 San Francisco Office Market Report
    9. Silicon Valley Office Market Report
      Third Quarter 2018

      The Silicon Valley office property market remained active during the third quarter of 2018, with sales volume nearly doubling quarter-over-quarter. The market posted a positive 661,225 s.f. of net absorption, but this was less than half the positive absorption of the previous quarter. Santa Clara County's unemployment rate was still near record lows at 2.6% percent in August of 2018. Although there were no major deliveries occurring this quarter, there has been 3.5 million s.f. of new construction delivered this year, and 4.46 million s.f. under construction. The office market continues its robust run, and is poised to finish the year strong.

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      Third Quarter 2018 Silicon Valley Office Market Report
      Second Quarter 2018 Silicon Valley Office Market Report
      First Quarter 2018 Silicon Valley Office Market Report
      Fourth Quarter 2017 Silicon Valley Office Market Report
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  4. Arizona

    1. Phoenix Office Market Report
      Third Quarter 2018

      The revitalization of the Phoenix office market continued apace and uninterrupted in the third quarter of 2018. By any measure, the office market is thriving and performing at the highest levels. Including sublet space, occupancy demand exceeded 737,000 square feet this quarter and, regarding relet space alone, already 2.2 million square feet has been absorbed for the year; in terms of leasing activity, 6.2 million square feet of space has been taken off the market this year; direct vacancy declined more than 12% from this time last year, reaching a market wide rate of 12.9%, and, at $25.80 per square foot, asking rental rates are the second highest ever achieved in the market - second only to the peak achieved in Q2 of the previous cycle established a decade ago.

      Downloads
      Third Quarter 2018 Phoenix Office Market Report
      Second Quarter 2018 Phoenix Office Market Report
      First Quarter 2018 Phoenix Office Market Report
      Fourth Quarter 2017 Phoenix Office Market Report
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  5. Nevada

    1. Reno Office Market Report
      Third Quarter 2018










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      Third Quarter 2018 Reno Office Market Report
      Second Quarter 2018 Reno Office Market Report
      Fourth Quarter 2017 Reno Office Market Report
      Third Quarter 2017 Reno Office Market Report
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