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
-
More Speaking & Teaching In May
We had so much fun last Saturday offering the Digital Marketing Bootcamp at General Assembly that we’re going to do it again in June! It really was a great class, thanks to the 14 future digital marketers who attended and shared their visions for what they want to do in digital. We’ll be offering that…
-
The [DGM] Breakfast Club
No, this was not us this morning, but I did spend an entire Saturday with 14 future digital marketers at General Assembly. The genesis of this offering was the 10-week Digital Marketing class that I led from Jan – Mar of this year. In the final session before Demo Night, we did a complete review…
-
Buffer, Kabbage, and Suster agree: blog.
I preach every day that every company should blog, especially startups and small businesses with limited marketing budgets. Pushing your content out via your blog is the starting point for your entire digital marketing strategy, which encompasses your content marketing strategy. Blogging requires only your time, and your organized thoughts put to keystrokes that tell…
-
Got Presentations? Create Blog Content.
The average American reads approximately 300 words per minute. The average time that a speaker talks per slide of a presentation (one with slides, of course) is at least 30 seconds, and, depending upon the complexity of the content, up to three minutes per slide. For the purpose of this blog post, let’s assume it’s…
-
1-Day Digital Marketing Bootcamp @ GA
Next Saturday, May 2, we will be hosting a 1-Day Digital Marketing Bootcamp at General Assembly in Ponce City Market from 10am to 4pm. After leading the 10-week part time Digital Marketing class this winter, we decided that a one-day, fast moving but hands on primer would be valuable to those who either (a) need…
-
The Interview
When I’m not creating content (aka writing), I’m getting content from those who know it best: entrepreneurs. That’s the heart of the routine as your content creator & strategist. I ask you an open ended question, you tell me your entire story, which then becomes blog fodder for your content marketing calendar. If only it…
-
Two TED Talks That Tempered My Tongue
When I started Pitch Practice in June of 2013, I didn’t know what it would eventually be or what value it might have to others. It was simply a fun gathering of fellow entrepreneurs to help each other answer the question, “So, what do you do?” a little better, and also help us prepare for…
-
Four Upcoming Speaking Events @ GA Atlanta
My speaking & teaching calendar for April and May just got a little busier, thanks to the great folks at General Assembly. If you haven’t visited their sweet new space at Ponce City Market, you should do yourself a favor and head to midtown Atlanta and have a look. While you’re there, you can get…
-
Time
Building on one of the most important aspects of our Digital Marketing Demo Night on Thursday, I need to emphasize the importance of time, mainly how fast it passes, both in the macro and micro. In the macro, guess what? It’s spring. How’d that happen? We get busy. We plan each week in minute detail,…
Leave a comment