Category Archives: Quarterly Reports

Construction Outlook Shows Tenant Improvement Boom [INFOGRAPHIC]

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By: Andrew Batson, Senior Research Analyst at JLL

Office construction is up 32% since last year, according to JLL’s new construction outlook. Of the 86.3 million square feet under production, tenant improvement (TI) – or the renovation of existing space – is trending.

Office Construction

In fact, there’s been a 14.2% increase in TI since the second quarter of 2013. Rather than building new properties from the ground up, landlords are looking to reinvent and fill vacant space.

Why? As construction, material and labor costs steadily increase, revitalizing existing space makes landlords more competitive and tenants more profitable.

2015 State of Construction Industry

For top takeaways from JLL’s new construction outlook report, download the report.

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Commercial Real Estate Trends in the Midwest: Q3

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By: Andrew Batson, Senior Research Analyst, Great Lakes Region, JLL

The third quarter of 2014 wrapped up on a positive note.

According to JLL, “Broad-based domestic economic expansion has fueled the tightest office market fundamentals in eight years across the United States.” And, thanks to strong economic forecasts nationwide, JLL expects 2014 absorption rates to exceed that of the last three years.

What does it mean for the U.S.? More confidant developers likely means more development for 2015.

Looking to the local cities across the Midwest, we also saw dynamic, lively activity in our local CRE markets. Below is a quick recap of Q3 highlights in Cincinnati, Cleveland, Columbus, Detroit and Pittsburgh. Download the full reports for details.

Market Activity in the Midwest

JLL-Research

Cincinnati

During Q3, there was an evident shift in demand for downtown space. We also observed an upturn in capital market activity during the third quarter. Increasing rental rates and declining vacancies have made Cincinnati an attractive investment spot. In fact, investors have spent more than $1 billion on Cincinnati CRE since the start of 2014.

In other news, construction teams stayed busy in Cincinnati. The majority of new projects are located in urban submarkets, with most interest in the CBD and Midtown. JLL predicts that this trend will continue, “…as development figures through the third quarter now equal that of pre-recession levels.”

By the numbers: 

  • Total vacancy: 20.3%
  • Total under construction: 1,389,000 square feet
  • YTD net absorption: 214,538 square feet

View the full Cincinnati Q3 analysis. (Office Insight Office Statistics)

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Commercial Real Estate Trends in the Midwest: Q1

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By: Andrew Batson, research analyst, Great Lakes Region, Jones Lang LaSalle

Q1 JLL 2013 will be a transitional year for commercial real estate, slowly leading the market along the path to recovery. Nationally, Q1 began the year with elevated touring activity in more than 40% of markets studied by Jones Lang LaSalle. Leasing activity… Read More

Commercial Real Estate Trends in the Midwest: Q4 2012

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By: Andrew Batson, research analyst, Great Lakes Region, Jones Lang LaSalle

Jones Lang Lasalle Q4

Experts and consumers alike look ahead to 2013 with optimism as 2012 comes to a close. Occupancy growth improved 84.1% over the course of 2012 within all markets tracked nationally by Jones Lang LaSalle (JLL). A closer… Read More