Category Archives: Commercial Real Estate Forecasts

500+ Executives in 30+ Countries Define the Status of Corporate Real Estate [REPORT]

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

What if you could curate the opinions of hundreds of leading commercial real estate executives around the globe? Would they agree on the current and future state of the industry?

As it turns out … great minds do think alike.

In JLL’s latest biennial survey, 540 executives from more than 350 companies and 36 countries weighed in on leading industry trends. We found that tough decisions are on the horizon for most CRE teams—ones that require a “challenge to the status quo, and a shift in the work-style and skills of CRE teams.”

Upon collecting and organizing the research data, JLL was able to narrow the results to four key takeaways. Read on for a glimpse into the survey’s insights, predictions and trends that will soon have major impact on industry norms.

4 Themes That Characterize Real Estate Today

The big question for all CRE teams and decision makers: how can we deliver the same value with a more efficient and business-aligned approach? Since its first global survey six years ago, JLL continues to evolve its own strategy based on feedback from professionals around the world. The answers to the questions on everyone’s mind are found in the four major themes below.

1. Centralization. When asked what changes respondents anticipate in the CRE team structure in just three years, more than half said teams are positioned for centralization and control. An astounding 92% of respondents had a dedicated global head of CRE, surpassing 86% in 2013.

What does it mean? Moving forward, CRE decisions can be more consistent for global, large-scale companies that may struggle to deliver consistent messages across borders. The importance of a CRE team is taking center stage.

 

Centralization

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Tips To Leverage the Digital Skyline, for Tenants & Investors

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

JLL’s 2015 Digital Skyline provides unparalleled insights for more than 600 million square feet of commercial real estate in 47 cities across the U.S. and Canada. It offers investors and tenants alike a birds-eye view of national trends, plus an up-close look at local market performance.

Not sure how to use the digital tool? We’ve got you covered. Read on for actionable ways commercial real estate occupiers, owners and investors utilize the Skyline.

Related Post — Aim higher: JLL Presents The 2015 Digital Skyline

3 Tips for Business Owners & Corporate Executives

1. Strategize your next move. Are you approaching the end of a lease, or considering relocation?

The Skyline is fundamental in making your initial list of viable properties for relocation. You can zoom in on individual buildings, and check out current vacancy, rents, LEED certifications and more. Make better relocation decisions by comparing markets or buildings within your market.

Below, check out Key Bank’s building profile in Cleveland.

Key_Tower

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Commercial Real Estate News Brief: May 2015

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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 foreign commercial real estate growth in the U.S., developer interest in Pittsburgh’s Carnegie Mellon project, and brand journalism trends in real estate.

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

Foreign Commercial Purchasing Surges on U.S. Soil

JLL CRE News Brief

Newspaper image via NS Newsflash.

In the first quarter of 2015, “commercial real estate transactions increased 45 percent by dollar volume,” according to research from Real Capital Analytics Inc., reported by Bloomberg. Demand is back—it’s raised competition among desirable properties, and encouraged investors to buy more rapidly throughout primary and secondary markets.

According to Real Capital, “Real estate deals surged $129 billion during the three months through March, marking the most active start to a year since 2007.”

Related Read: Aim Higher: JLL Presents The 2015 Digital Skyline

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Aim Higher: JLL Presents The 2015 Digital Skyline

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By: Andrew Batson, Senior Research Analyst at JLL

Are you an investor curious about market outlooks, or a tenant approaching lease expiration? Well, I have good news. The annual Skyline Review is back.

Each year, JLL’s research team analyzes the top North American skylines and gives investors and tenants alike a personal, up-close, look at some of the highest-profile commercial buildings and office towers in our cities. JLL notes, “These assets are the true drivers of leasing supply, demand, rents and development and serve as the building wish list for foreign and domestic institutional investors.”

The report provides a birds-eye view of local urban office markets, including both micro and macro-level statistics from floor-by-floor leasing to investment performance.

And now—for the first time ever—JLL is introducing the Digital Skyline.

JLL Skyline Blog Image

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Commercial Real Estate News Brief: January 2015

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Commercial real estate is a dynamic industry. Keep up with Spaces’ monthly recaps of the most valuable industry articles we’ve recently come across, focused on news in Ohio, Michigan and Pennsylvania.  

Global CRE Investment Volumes Signal Continued Uptick for 2015  

In the final quarter of last year, global commercial real estate capital markets reached new heights “at near-record levels,” according to JLL.

JLL CRE News Brief

Newspaper image via NS Newsflash.

  • Investment Volumes: +9% YOY
  • Office Vacancy Rates: 12.7%
  • Capital Value Growth: +8.3% YOY

In addition to movement in capital markets, occupier demand continues at a healthy pace, with more activity expected from traditional markets in 2015. Thanks to higher levels of demand and a shortage of supply, experts foresee new development.

Another trend: investors are noticing secondary markets. In fact, JLL experts say, “There is a notable growing interest in higher-yielding assets in smaller and second-tier locations, particularly in the U.S. and Europe…”

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JLL Experts: Rust Belt Critical to Future U.S. Economy

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By: John Sikaitis, Managing Director and Christian Beaudoin, Senior Vice President – JLL

John Sikaitis at a recent speaking engagement.

John Sikaitis at a recent speaking engagement.

While there’s fluctuation across the globe, the overall outlook for the U.S. economy remains strong. Thanks to an economic environment characterized by the continued elevation of corporate profits, the strongest job market since the late 90s and economic growth that is roughly 15 to 20 percent above levels in 2013, the U.S. dollar is at its highest level in years.

That momentum, coupled with a substantial drop in oil prices, is energizing consumers, fueling the highest consumer confidence level in eight years, which will drive enhanced growth to economic prospects over the next 24 months.

The same optimism exists for the commercial real estate industry in the U.S.

Net absorption topped 50 million square feet in 2014, a 38 percent increase from 2013; vacancy fell below 16 percent for the first time since 2008 and the American corporate is demonstrating increased signs of growing their real estate footprint. In the third and fourth quarter of 2014, 46 percent of tenants greater than 20,000 square feet completed leases with a growing real estate footprint—double the rate of any other point in this cycle. Across the vast majority of markets, the recovery has gained substantial momentum, fueling enhanced confidence from landlords and rent growth across 85 percent of the markets JLL tracks in the United States.

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How Low Gas Prices will Impact the Office Market (SLIDESHARE)

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By: Dan Adamski, Managing Director, JLL

For the first time in years, filling up isn’t getting us down.

Diesel prices sitting below $3 are welcomed by consumers, especially as the holidays arrive. In June of this year, gas prices reached $3.68. Now, they’re as low as $2.73, according to AAA. The drop in gas costs hit quickly, and its impact on multiple industries varies.

The Situation: Oil Prices Fall Worldwide

For the first time in five years, the price of one barrel has dipped below $70, which is down from more than $100 per barrel in the last five months. Causes for the drop in costs include:

  • Excess supply and little slow down in production
  • Drop in overall demand, due to slower economic growth in China and lower levels of oil consumption in Europe
  • Strict fuel standards (good news for the environment) and a sharper focus on energy efficient practices

The biggest cause, however, is supply. There are three million more barrels a day in the global market now than there was in 2011. Combined with a new focus on sustainability and weaker demand, it’s no wonder that prices have decreased.

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Keeping Pace with Millennial Impact on CRE Demand

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By: JC Pelusi, Great Lakes Market Director, JLL

Below is an excerpt from an article that was originally published by Heartland Real Estate Business (www.REBusinessOnline.com), reposted to this blog with permission from the Editor. Visit the full article for a more detailed look at how millennials are shaping  commercial real estate demand.

Downtown ClevelandIt’s no secret that the millennial… Read More

Calling All Law Firms: Keys to Succeed in a Muted Market [Infographic]

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By: Robert Kramp, Vice President and Director of  Research, Jones Lang LaSalle, Midwest and Great Lakes Region

Yes, economic activity has seen an upturn in recent months, and many industries are feeling the positive return of economic acceleration. With the improved fundamentals comes a change in the future of office space as evidenced with trends in law firms.

For starters, JLL research has found that growth revenue levels for AmLaw 100 firms slowed in recent years. And,… Read More

The Sky’s The Limit: Real Estate Report Examines Top Local Skylines

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By: Robert Kramp, Vice President and Director in the Midwest and Great Lakes Region at JLL

skyline-sketchEvery city’s skyline tells a story. Some might say that its character starts with the shape of its skyline. How has your city’s skyline evolved during 2013?

Each year, JLL’s research team takes inventory of the top skylines across the U.S. to uncover the highest-profile commercial buildings and office towers in… Read More