Jason Ilstrup’s Post

Office vacancy rate in Phoenix area drops for the first time in five years  For the first time in nearly five years, the vacancy rates in Phoenix area office market decreased, AZ Big Media reports. Figures from JLL’s Q3 2024 report show a decrease by 10 basis points during the third quarter to 25.1%. The improvement is attributed to a slowdown in move outs. Asking rents rose, increasing by 3.1% year-to-date after an earlier decline. There is an increased interest in pre-built and high-quality spaces and a growing demand for locations with amenities. “We’re seeing Phoenix’s positive office market trends play out in real-time,” says Trevor Pratt, managing director at JLL. Read more: rptn.co/kk3yAEB4AcA #ThomasTitleandEscrow #CommercialRealEstate #TitleTrove #Office #Arizona #Phoenix

The Wisconsin State Journal provides a nice summary of the Downtown Madison office market, where vacancy is 12.1 percent. And yes, the Downtown Madison office market is outperforming the suburbs along with most of the Downtowns in peer markets. In Milwaukee, combined vacancy in the four Downtown submarkets averages 16.9 percent, and in Minneapolis, the central business districts average 21.6 percent vacant. The article notes that vacancy is under 10 percent for Class A buildings, but is over 20 percent for Class C buildings. While converting office buildings to apartments is rarely practical, we've seen plenty of Class B & C buildings being torn down and replaced by new apartment buildings. One recent example is the former low-rise 73,000 square foot SWIB office building on E. Wilson St, which is being redeveloped by Quad Capital Partners into a 14-story, 337-unit, 390,000 square foot apartment building (not including parking) called ONE 09. https://lnkd.in/g6PCfqHc

With landlords facing a rise in office vacancies, our CEO and co-founder Wybo Wijnbergen gives his insight into the strategies landlords can employ to tackle this growing problem. 1️⃣ Transforming traditional office space into alternative forms of commercial real estate – such as retail and hospitality. 2️⃣ Repurposing traditional office spaces into modern and innovative flexible workspaces that have the power to command both high rental revenues and boosted property valuations 3️⃣ Converting office space into residential property, tapping into the housing stock shortages that have engulfed major cities. Want to find out more? Check out Wybo’s latest article for Property Reporter https://hubs.li/Q02lC71q0

Exciting developments in the downtown Portland office market‼️ According to Jones Lang LaSalle's latest report, Q4 of 2023 witnessed a surge in activity, with decision-makers now confidently committing to long-term office space needs. The shift towards newer Class A/Trophy buildings in areas like the Pearl District and West End reflects a dynamic trend, while safety, amenities, and parking remain top priorities for occupiers. Despite a 20% downtown vacancy rate, optimism arises from a slowdown in new office space and Portland's economic advantages, making it a cost-effective option on the West Coast. 🌆💼 #PortlandRealEstate #OfficeMarketOptimism

⚡ Feds Plan to Vacate 11M Sq Ft of Office Space in Ottawa Ottawa’s office market faces major challenges as the federal government plans to cut its real estate footprint by 50%, returning up to 11 million sq. ft of office space to the market over the next decade. Downtown vacancies have reached 11.7%, raising concerns about how to repurpose these spaces. Read the full story by RENX: https://lnkd.in/gxbjKbfR Check out realestaterecap.ca for 15-second summaries of the latest real estate news in your area and across Canada. ✅

Eyebrow-raising article from the Globe and Mail on Toronto's office real estate market. Here are my thoughts and takeaways: - While vacancy is on the rise in the wake of the pandemic, it’s easy to paint a broad stroke "doom and gloom" picture on office real estate. When we "dig a little deeper", one can observe that high-quality space (which can be determined by location, building amenities, carbon efficiencies etc.) is performing well. Older buildings that are not well located, and do not have amenities drawing employees back downtown to work, experience a bulk of the pain. When we split the vacancy rates between these two different classes of buildings, the narrative becomes quite different. - Let's not forget that since the start of the pandemic, we've added 7.8 M square feet (or 9%) to the downtown core's office market by way of new construction and an additional 2.5 M square feet (or 2.8%) will come online in the next two years. Toronto is a vibrant city and the economic powerhouse of Canada. The demand for office space well ebb and flow with economic conditions and the future of how we work will certainly play a factor. By no means is the office market in Toronto a dying asset class, it's simply adjusting to "the new normal". That said, there is still opportunity for tenants to capitalize on these conditions and "right-size" their office footprint into higher quality space. Prudent landlords will continue to access their buildings and offer amenities or financial incentives to complete with the well-performing product.

This article takes a look at downtown office vacancy and what we can expect in 2025. While overall vacancy rates appear elevated, a closer examination reveals a more nuanced picture. The majority of vacant space is concentrated in older, less modernized office buildings. In contrast, premium properties with extensive amenities, such as PNC Tower, 400 W Market, and 500 W Jefferson, are experiencing a significant uptick in new lease agreements. Additionally, these high-end buildings are seeing existing tenants renovate their spaces and commit to longer-term leases. https://lnkd.in/eXvnApBZ https://lnkd.in/eXvnApBZ

South #Florida’s Office Market Stands Apart for All the Right Reasons: Miami-Dade office rents are up 15% from last year, Palm Beach County up 31%, reports Commercial Observer As more workers return to offices, #SouthFlorida continues to achieve new records and stand apart from the rest of the nation’s slumping and distressed office market. Overall asking office rental rates in #Miami-Dade County rose to an average of $66.33 per square foot per year in the third quarter, up 15 percent from a year earlier, commercial real estate firm JLL (JLL) reported. In a separate study, Cushman (CWK) reported that office rents in Miami-Dade’s central business district rose to $79.54 per square foot during the third quarter. The eye-popping rents in Miami’s #Brickell submarket have been pushing up the numbers. Space at 830 Brickell has been renting for well above $100 per square foot. In a sign that South Florida continues to attract out-of-state employers, 450,000 square feet of office space at the 638,000-square-foot 830 Brickell will be filled by new-to-market #tenants. That roster includes Citadel, Microsoft (MSFT), CI Financial, Marsh, Santander, private equity firm Thoma Bravo and law firms Kirkland & Ellis and Sidley Austin LLP and more. Jeff Ostrowski Cathy Cunningham Max Gross Justin Oates OKO Group Cain International Brian Gale Steven Hurwitz Douglas Okun Andrew Trench Ryan Holtzman Schwartz Media Strategies James R Freiman

JUST LISTED 🚨 Park at Bay Plaza | Flex - Office Business Center 📍9225-9350 Bay Plaza Blvd, Tampa, FL 33619 Offering Price: $𝟮𝟭,𝟬𝟬𝟬,𝟬𝟬𝟬 Net Operating Income: $𝟭,𝟱𝟬𝟯,𝟬𝟲𝟬 Building SQFT: 𝟭𝟴𝟲,𝟮𝟯𝟵 Number Of Tenants: 𝟱𝟯 Occupancy: 𝟴𝟱.𝟭% Buildings: 𝟳 𝗔𝘁𝘁𝗿𝗮𝗰𝘁𝗶𝘃𝗲 𝗬𝗶𝗲𝗹𝗱 𝘄𝗶𝘁𝗵 𝗚𝗿𝗼𝘄𝘁𝗵 𝗣𝗼𝘁𝗲𝗻𝘁𝗶𝗮𝗹: The Property currently offers a strong 7.2% in-place capitalization rate, with pro forma projections reaching a cap rate of 10.1% by Year 3, demonstrating solid initial returns and room for income growth. 𝗣𝗿𝗶𝗰𝗲𝗱 𝗕𝗲𝗹𝗼𝘄 𝗥𝗲𝗽𝗹𝗮𝗰𝗲𝗺𝗲𝗻𝘁 𝗖𝗼𝘀𝘁𝘀: This asset offers an appealing value proposition for investors, with significant room for appreciation compared to similar properties in the region. 𝗥𝗲𝗻𝘁 𝗚𝗿𝗼𝘄𝘁𝗵 𝗢𝗽𝗽𝗼𝗿𝘁𝘂𝗻𝗶𝘁𝘆 𝗧𝗵𝗿𝗼𝘂𝗴𝗵 𝗟𝗲𝗮𝘀𝗲 𝗥𝗲𝗻𝗲𝘄𝗮𝗹𝘀: With leases currently below market rates and a WALT of 3 years and 2 months, there is a clear path to increase revenue as leases renew and rates adjust to market levels. 𝗛𝗶𝗴𝗵 𝗢𝗰𝗰𝘂𝗽𝗮𝗻𝗰𝘆 𝗶𝗻 𝗮 𝗦𝘁𝗿𝗼𝗻𝗴 𝗠𝗮𝗿𝗸𝗲𝘁: Boasting an 85.1% occupancy rate, the Property is located in the growing Tampa market, where office vacancy rates are below 9%. This stable environment highlights the area’s demand and the potential for further lease-up, supporting strong income continuity. 𝗗𝗶𝘃𝗲𝗿𝘀𝗲 𝗧𝗲𝗻𝗮𝗻𝘁 𝗠𝗶𝘅 𝗳𝗼𝗿 𝗦𝘁𝗮𝗯𝗶𝗹𝗶𝘁𝘆: The tenant base spans multiple industries—healthcare, professional services, and logistics—providing steady cash flow and minimizing sector-specific risk, making Park at Bay Plaza a resilient investment opportunity. Please reach out to myself, Douglas K. Mandel, Zach Levine & Josh Gilbert for more details. 📞 813-387-4784 ✉️ [email protected] #cre #commercial #flex #office #warehouse #tampa

"Office users now want more of a concierge experience, and successful offices are going to need to reposition themselves to meet that shifted demand." John Ziegenhein and Jason Winans spoke with Washington Business Journal's Dan Brendel about how recent renovations to #2BethesdaMetro and #5425WisconsinAve will cater to the evolving demands of office tenants. Read more below! https://lnkd.in/d6uYwUfX #TheChevyChaseLandCo #CCLC #CRE #Office #ReturnToOffice