Every month, JLL’s regional team curates the top commercial real estate industry articles to keep you in-the-know. In this month’s edition, JLL spotlights Urban Land Institute’s semi-annual survey, the rise of suburban office markets and a guide to model your office renovation process.
Keep up with Spaces’ monthly recaps—subscribe today.
Commercial Real Estate Industry Poised for Growth Through 2019
The new semi-annual market survey from Urban Land Institute (ULI) is out, and according to new findings, things are looking up for commercial real estate. The industry is expected to see “moderated growth” through 2019, which includes rent growth, positive returns, and stable occupancy rates across all property types.
Specifically, the industrial sector is expected to pull ahead, largely fueled by the flourishing e-commerce and data center landscape. In fact, industrial is forecasted to grow roughly 3.7% over the next two years.
Visit Construction Dive for more highlights from the report.
Office Market Investors Favor Suburban Over Urban
Following the trend from Q2, investment sales for office space decreased in Q3. In fact, Real Capital Analytics (RCA) reported a whopping 18% decline in sales compared to last year’s numbers.
Much of the decline can be attributed to a lack of investment in offices around central business districts (49% decline). So where are investors spending? They are instead showing a new preference for office space in suburban areas. RCA saw a 4% upturn in office property sales in these assets.
With a focus on savings, investors are also prioritizing secondary markets that are home to “suburban submarkets with walkable environments.”
For more details, read the full article on National Real Estate Investor.
How You Can Have One of the “Coolest Offices” Too
If you haven’t heard, JLL’s Chicago headquarters made Crain’s list of 2017 Coolest Offices. This follows JLL’s recent office renovation, which houses about 1,500 employees and took about 18 months to complete. The space features large conference rooms, huddle rooms for individual productivity, a full-service coffee bar and much more.
In the midst of your own office remodel? Download the full guide for JLL’s recommendations on modeling the office renovation process.
Or, check out all of Crain’s top office picks in Chicago here.