Office Lease Market Trends Report

NNN Lease Office Market News

Calkain Research provides in-depth analysis of the market. Our intimate knowledge and years of experience in the market have given us the unique opportunity to provide thoughtful leadership and perspective.

San Diego Ofiice Market
Boosted by a relatively low increase in vacancies, San Diego County’s office market improved from 17th to 11th place. “San Diego leads the group of markets ranked just outside of the top 10 with above-average marks for several indicators, including its change in vacancy, concessions and new supply.


Orlando Office Market.
The submarket, which had a 20.1 percent vacancy rate in fourth-quarter 2009, improved to 17.4 percent in 2010’s fourth quarter, said a new report from Morrison Commercial Real Estate.
That compared with a fourth-quarter 2010 vacancy rate of 19.2 percent in the Orlando market as a whole, which was worse than fourth-quarter 2009’s 18.7 percent.


Chicago Office Market
Total vacancy in the Chicago area improved slightly in the first quarter of 2011, with the downtown office market recording 575,085 square feet of positive absorption and the suburban market 417,590 square feet of positive absorption, for vacancy rates of 16.14 percent and 22.63 percent respectively.
Four leases in the downtown market eclipsed 100,000 square feet, with KPMG LLP recording the largest new lease for 260,000 square feet at the AON Center.   The largest new lease in the suburban market was CVS Caremark’s 119,245-square-foot lease at 2100 E. Lake Cook Road in Buffalo Grove.
Despite the increased leasing activity, overall asking rental rates continued to tick down. Class A space in the downtown market was $31.90, down slightly from the previous quarter, while Class B rates held steady at $26.44 and Class C was down to $21.79.


NJ Office Market
Office markets have been mixed but generally steady across the District in the first quarter of 2011. The office vacancy rate rose moderately in Manhattan and Long Island (where it reached a multi-year high), but was little changed in Northern NJ. However, asking rents in all these areas moved up, and landlords reportedly scaled back on concessions. In Westchester and Fairfield counties however, office markets showed further signs of softening, as vacancy rates rose and asking rents continued to decline modestly.


NYC Office Market
The Manhattan office market is flexinits muscles and is beginning to show signs of strength and improvement.  SL Green Realty Corp., the City’s largest office landlord, just reported its fourth quarter earnings.  A Crain’s New York Business article reported the company’s funds from operations increased to $74.7 million or 93 cents a share, up from $69.1 million or 87 cents a share from the year prior.


Washington Office Market
Unlike other parts of the country, the Washington office market is also fueled by a growing job market. The region has the lowest unemployment rate, 6.2 percent in August, among major metropolitan areas in the country.
Metropolitan Washington has added a net of 20,000 public and private sector jobs during the past year, according to the government. Growing payrolls often prompt employers to look for more space.
Still, some experts say several looming factors could put the brakes on the sector's recovery in the region.




The best office market remained Washington, D.C., and Detroit remained the worst.