Earlier this week, CBRE announced the complete (CBRE already owned 40%) purchase of Industrious, bringing to light the new business segment within CRE known as “Building Operations & Experience (BOE)”. See Patrick Braswell‘s analysis here:
https://lnkd.in/evCBPMBM
At the end of 2024, just a couple of weeks ago, the following stats were published by Commercial Edge (link: https://lnkd.in/e-MFUJjz)
* Six out of the 25 top U.S. office markets have seen their vacancy rates increase by more than 500 basis points in the last year, with Austin leading with a 650-basis-point surge
* During 2024, 39.7 million square feet of office space was delivered, while only 9.1 million square feet broke ground
* Office properties have sold at an average of $179 per square foot, down 9% from the 2023 average sale price
* The average U.S. office listing rate stood at $32.85 per square foot, up 3.7% year-over-year
* After a slow start this year, Manhattan is once again the most sought-after market for office investment, logging $3.8 billion in transactions
Also, commercial mortgage rates ranged from 5.34% to 7.27% depending on the type of loan and lender.
What’s are the trends here, now that we’re into 2025 and about to inaugurate a new administration in Washington?
Here’s what I see as a relative newcomer to this space:
* Lots of empty office space means good deals on subleases and long term leases
* WFH as a top line “perk” for employees means employers can lease less space than they would have needed 5 years ago for the same number of employees
* Building technology has improved dramatically in the last 5 years, the very least of which is the near ubiquitous availability of fiber, and the most used of which is video conferencing technology, which is near Jetsons-like.
* CBRE has kicked down the door of Co-Working & Shared Office Space being a separate entity from CRE management companies. It’s now part of the mix.
* To level the playing field between WFH and RTO, building managers – not just their leased employers – are upping the game to make “the office” someplace you actually want to spend time.
* More CRE was delivered than started (broke ground) means more space on the market now but less on the way.
What’s all this mean? Movement. Activity. Opportunity. All of which is good for the marketplace and providers within the marketplace.
ATL CRE 2025
Comments
More from Kevin
-
Try a sample, then eat the whole cake
Have you ever seen a big tasty-looking carrot cake in the window of a bakery, then run in and bought that $21.99 carrot cake, and then you get home, nuke a piece, dive in, and…ugh. That’s how my grandmother made carrot cake!! Where are the raisins? It’s so dry! But you bought the whole cake, and…
-
4 Steps to Determine How Well You Know Your Brand
This post originally appeared on the General Assembly Digital Marketing Blog. How well do you know your brand? DO you know your brand? Actually, “brand” is an uncomfortable topic for many startup founders and small business owners, simply because they weren’t thinking about their brand when they started. It’s not a knock on them. Every entrepreneur…
-
It’s easier – and better – for someone else to tell your story
Since transitioning from a simple content aggregation publication into a content marketing service, I’ve had dozens of meetings with entrepreneurs and marketers about “telling their story.” A consistent pattern has emerged out of those meetings that has become predictable in all my initial consultations with potential clients: It’s easier for me to tell your story…
-
How and Why to Segment Your Website Audience
This post originally appeared on the General Assembly Digital Marketing Blog. When you go shopping for new clothes, online or in a brick and mortar store, which section do you hit first, the men’s or the women’s clothing? Good. OK, when you need a new power cord for your computer or smartphone, do you go…
-
4 Steps to Predictable Marketing Outcomes
One of the greatest achievements in starting a business is when you reach the point at which you can conduct a marketing campaign and predict with great confidence the outcome of the campaign, regardless of the end goal. When you can accurately predict the outcome of each individual marketing effort, you can then grow your…
-
Digital marketing summed up in six simple points
Last Thursday, I led a 2-hour version of the six hour version of the 10-week Digital Marketing class at General Assembly. I really enjoy teaching these short, impactful sessions that serve as great introductions or primers for folks who want to learn to talk the talk in Digital Marketing or determine if they’d like to…
-
Digital Marketing 101: Glossary of Digital Marketing Terms
This post originally published on the General Assembly Digital Marketing Blog. 1. Analytics – information resulting from the systematic analysis of data or statistics. In digital marketing, analytics is the information resulting from systematic analysis of data gathered from marketing activity such as email marketing, landing page A/B testing, or Google Adwords purchases. 2. Average…
-
Digital Marketing 101: Creating Your Digital Marketing Calendar
This post originally published on the General Assembly Digital Marketing Blog. This post is part of our Digital Marketing 101 series. Sign up to get the full series! Everything we’ve discussed so far in this Digital Marketing 101 series has focused on what to do and a bit about how to do it. But in…
-
Digital Marketing 101: Understanding the Digital Marketing Funnel
This post originally published on the General Assembly Digital Marketing Blog. When we started our latest session of Digital Marketing at General Assembly’s Atlanta campus, I told the class, “the term ‘digital marketing’ is a misnomer. It’s marketing, but we focus on getting our message to our audience digitally. But it’s still marketing.” What I…
Leave a comment