Monthly Archives: February 2016

Office Outlook: Great Lakes Market Trends to Watch (Research)

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By: Andrew Batson, Manager of Research & Analysis, JLL

Last year was strong for the U.S. economy. Markets large and small saw expansion in both employment and output.

In fact, according to JLL’s newly released Office Outlook report, secondary and tertiary markets are positioned to gain speed this year as economic expansion diversifies.

Across the board, two sectors drove domestic economic success in 2015. Technology and financial services were responsible for roughly 33% of total U.S. leasing activity in Q4. What’s more, since Q2 2014, about 50% of leasing activity represented companies undergoing expansion.
Market success

The good news doesn’t stop there. Even with the addition of 44.2 million-square-feet of new supply across the U.S., 2015 saw the lowest vacancy level in eight years.

According to the report, companies are “looking to new markets across the country as more than 1.7 million square feet of new-to-market leases were signed during the fourth quarter.” JLL experts have high expectations for growth this year, suggesting there is “no sign of a slowdown for [the] U.S. office market.”

How does the Great Lakes region stack up to national trends? Read on for highlights in your market from the Q4 2015 Office Outlook Report.… Read More

Commercial Real Estate News Brief: February 2016

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In the latest edition of our monthly news brief, JLL’s regional team curates the top industry articles to keep you in-the-know. In this month’s edition, JLL spotlights CRE trends to watch in 2016, millennial brain gain in the Great Lakes and Detroit’s bright economic future.

Keep up with Spaces’ monthly recaps, and subscribe to JLL Spaces today.

CRE Trends to Watch in 2016

CRE Industry UpdateAccording to National Real Estate Investor (NREI), 2016 will be an opportunistic year for investors “who can step out in front of ongoing, and in some cases intensifying, economic demographic and technical trends.”

Growth in the U.S. looks stable, while underlying inflation should remain tame. Rates will likely stay consistent, which may apply pressure on other economies. But, according to NREI, this could make U.S. assets more appealing throughout the year.

In a quick wrap-up, here are three of the six key trends ahead projected by NREI:

  1. Global Urbanization: Both boomers and millennials are looking for better access to jobs and amenities, so they’ll continue moving closer to cities this year.
  1. Changes in Retail: 2016 will see retail continue to embrace the virtual and physical shift, as well as entertainment-themed spaces. Last year’s Thanksgiving holiday saw online purchases outpacing in-store shopping for the first time ever. According to NREI, “analysts suspect that the more successful retailers will be those who can optimize a combination of online and in-store shopping experiences.”
  1. Lower Energy Prices: The cost of oil has dramatically decreased and major oil producing countries haven’t reduced production. In 2016, this will have a significant economic impact across industries—including commercial real estate. Most notably, the reduction in oil costs will “boost industrial production and reduce distribution costs,” according to NREI.

For the full outline of trends to watch this year, check out the latest article by National Real Estate Investor.… Read More

Midwest Real Estate News Recognizes JLL Experts in Its 2015 Commercial Real Estate Hall of Fame

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By: JLL Spaces

It’s official: Midwest Real Estate News has selected its sixth annual class of the Midwest Commercial Real Estate Hall of Fame (2015). Great Lakes leadership would like to congratulate JLL professionals included on this year’s roster: Rusty Myers, Executive Vice President in Cincinnati and Dan Wendorf, Managing Director in Columbus.

Both are exceptional leaders and producers in the Ohio marketplace, serving as go-to resources for commercial real estate insights locally and nationally.

Below, both leaders took a moment to share personal motivators and market predictions in 2016.

Q&A: JLL CRE Hall of Famer Rusty Myers

Rusty Myers About Rusty Myers: Myers has 30 years of experience in the Greater Cincinnati real estate market. He specializes in tenant representation and agency leasing for office clients, and provides acquisition, disposition and development services. Myers has been involved in more than 250 real estate transactions, many exceeding $300 million in value.

Q: What do you enjoy most about your work in CRE?

Myers: I enjoy the variety of what we do in our day-to-day roles. It often ties together finance, marketing, real estate and other specialty areas. Each day is different, allowing you to use your expertise in a variety of areas to help clients succeed.… Read More

JLL Predicts Super Bowl Winner Based on Strong Local Market

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By: JC Pelusi, Market Leader, Managing Director, JLL

JLL Americas Executive Chairman and Hall of Fame Quarterback Roger Staubach has placed his bets on a Denver Broncos victory for this Sunday’s big game.

Staubach does follow the teams closely, but JLL predictions go deeper than on-the-field performance.

Since JLL began predicting Super Bowl winners in 2011, “NFL teams based in cities with higher overall office vacancy rates took home the championship title 60% of the time,” according to JLL Research. With Denver’s vacancy rate a marginal .8% higher than Charlotte’s vacancy rate, Staubach suggests it’ll be a tight game.

Off-the-field statistics also play a role in the outcome of the Super Bowl, including:

  • Tenant and investor opportunities
  • Increased leasing activity from the technology industry
  • A highly educated workforce
  • Low economic rates and population growth

Denver’s commercial real estate office market recently made “an adjustment for the future, just like the Broncos do on the field,” according to JLL. Hear more about Staubach’s Super Bowl predictions in the video below.

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