You miss 100 percent of the shots you never take, and if you think it’s expensive to hire a professional to do the job, wait until you hire an amateur. FOR OVER 20 YEARS, I HAVE WORKED EXTENSIVELY WITH OWNERS AND BUYERS IN LAND, COMMERCIAL AND INVESTMENT REAL ESTATE IN PHOENIX, TUCSON AND THROUGHOUT ARIZONA. PLEASE LET ME KNOW HOW I CAN HELP YOU. Call me if you want to sell your property and need an estimated value. Phone / Prefer cell: 520-975-5207
Office: 480-948-5554 or email me walterunger@ccim.net. – What is a CCIM.
In Business and in Life you don’t get what you deserve, you get what you Negotiate.
contact me if you want the me to get you the value of your property.
CLICK HERE TO VIEW ALL MY LISTINGS.
Are you ready to sell or purchase your Land or Commercial Building in Phoenix, Scottsdale, Maricopa County and Pinal County, Arizona, please call me?
Walter Unger CCIM – cell: 520-975-5207 – walterunger@ccim.net
Key Takeaways
- U.S. office listing rates averaged $38.62 per square foot in February
- The national vacancy rate rested at 15.7% across the top 50 markets
- Office transactions amounted to $12 billion in the first two months of the year
- The construction pipeline shrunk to 146.6 million square feet nationwide
Companies are calling workers back to the office as pandemic mandates have expired around the U.S. However, return-to-office strategies evolved significantly in the past year, shaping a new future for the market. Specifically, the rise of hybrid work models has been contributing to increased demand for high-quality office assets, already widening the rate gap between classes in select markets.
However, mid-tier office buildings are not devoid of growth opportunities in this new context. With some concessions and increased tenant improvement allowances, class B and C buildings can stay competitive — while conversions and redevelopments remain a lucrative option, especially for investors interested in tight markets.
For more details on the rise of high-quality office space and other market trends, download the full March 2022 report below.
Tampa Rates on the Rise as New Development Comes Online in the Market
Across the top 50 U.S. markets, the average full-service equivalent listing rate for office space rested at $38.62 per square foot in February. Office rates remained stable through February, increasing by 1.2% compared to the previous year.
Looking at individual markets, Los Angeles office space ($41.62/sq. ft.) came first in terms of year-over-year growth, marking an 8.1% increase compared to February 2021. The Bay Area ($55.79/sq. ft.) and Tampa ($29.70/sq. ft.) shared the second spot for office rent growth, as rates in both markets increased by 6.2% in the last year.
Listing rates for Tampa office space illustrate how changes in the composition of stock can drive up rents and vacancies without reflecting underlying market conditions. An extensive new mixed-use development, Water Street Tampa, recently started coming online in the Florida market, delivering 150,000 square feet of high-quality stock: office space at Thousand & One is listed for $58.00 per square foot, significantly above the Tampa market average.
The National Office Vacancy Rate Remained Stable Through February
February office vacancies averaged 15.7% nationally, unchanged compared to the previous month and up 70 basis points (bps) over the last year.
Boston remained the tightest office market in the U.S., recording an average vacancy rate of 10.5% in February. Office vacancies were also in the low double digits in Manhattan (13.1%), Miami (13.1%) and Los Angeles (13.3%).
Meanwhile, Phoenix office space (15.5%) recorded the fastest drop in vacancies, 280 basis points compared to February 2021. Furthermore, the office vacancy rate in Miami decreased by 270 bps, the second largest year-over-year drop. Vacancies for office space in the Twin Cities came in third, falling by 200 bps to an average of 14.5%.
Download the full March 2022 report below for updated lease and vacancy rate stats across all major U.S. markets.
Office Transactions Amounted to $12 Billion in the First Two Months of the Year
A total of $12 billion in office transactions were recorded through the end of February, while the average sale price per square foot rested at $284 nationally.
Both Atlanta ($983 million) and the Bay Area ($918 million) are already nearing $1 billion in sales volume year-to-date. When it comes to office transactions in the California market, investor activity has primarily been driven by the life sciences sector. A significant $446 million in Bay Area office sales is owed to Alexandria Real Estate’s acquisition of the Stanford Research Park, which will be converted to laboratory space — according to SEC documents filed by the company.
U.S. Office Construction Pipeline Slid to 146.6 Million Square Feet
Nearly 147 million square feet of new office space were under construction by the end of February, as the development pipeline continued shrinking on a national level. New projects have been starting at a slower pace than office completions, leading to a decrease of 10 million square feet in the past six months. Projects with shovels in the ground accounted for 2.2% of the total stock nationwide in February, while the under-construction and planned project pipeline represented 5.9% of stock.
In an individual market analysis, the Manhattan development pipeline was the largest in February. Close to 20 million square feet of new office space was under construction in the Northeast market, accounting for 4% of inventory. However, with only 2.1 million square feet of stock starting construction this year, the Manhattan pipeline will contract in the coming months.
Meanwhile, Boston had the second largest development pipeline last month — close to 12 million square feet of office space — while Austin came in third, with over 10 million square feet of new inventory underway.
Download the full March 2022 report on performance across U.S. office markets, as well as insights on industry and fundamentals of economic recovery.
You can also see our previous office reports.
Methodology
This report covers office buildings 25,000 square feet and above. CommercialEdge subscribers have access to more than 10,500,000 property records and 325,000 listings for a continually growing list of markets.
CommercialEdge collects listing rate and occupancy data using proprietary methods.
- Listing Rates — Listing Rates are full-service rates or “full-service equivalent” for spaces that were available as of the report period. CommercialEdge uses aggregated and anonymized expense data to create full-service equivalent rates from triple-net and modified gross listings. Expense data is available to CommercialEdge subscribers. National average listing rate is for the top 50 markets covered by CommercialEdge.
- Vacancy — The total square feet vacant in a market, including subleases, divided by the total square feet of office space in that market. Owner-occupied buildings are not included in vacancy calculations. A and A+/Trophy buildings have been combined for reporting purposes.
- Stages of the supply pipeline:
- Planned — Buildings that are currently in the process of acquiring zoning approval and permits but have not yet begun construction.
- Under Construction — Buildings for which construction and excavation has begun.
- Sales volume and price-per-square-foot calculations for portfolio transactions or those with unpublished dollar values are estimated using sales comps based on similar sales in the market and submarket, use type, location and asset ratings, sale date and property size.
March 17, 2022
Irina Lupa is a creative writer for several Yardi publications, where they cover real estate market trends and industry news. Their work has been cited in Forbes, Globe St. and CNBC, among others. Irina has an academic background in journalism and media theory. You can connect with Irina via email.
Bisnow Commercial Real Estate News
Walter Unger CCIM – cell: 520-975-5207 – walterunger@ccim.net
FROM ME: FOR OVER 20 YEARS, I HAVE WORKED EXTENSIVELY WITH OWNERS AND BUYERS IN LAND, COMMERCIAL AND INVESTMENT REAL ESTATE IN PHOENIX, TUCSON AND THROUGHOUT ARIZONA. Now is the time, if you are thinking of selling or purchasing your Land or Commercial Building in Phoenix, Scottsdale, Maricopa County, Pinal County, Arizona / Office / Retail / Industrial / Multi-family / please call me on my cell 520-975-5207 or e-mail me walterunger@ccim.net. Investors and Owner / Users need to really know the market today before making a move. The market has a lot of moving parts. What is going on socio-economically, what is going on demographically, what is going on with location, with competing businesses, with public policy in general — all of these things affect the quality of selling or purchasing your Commercial Properties, Commercial Investment Properties and Commercial and large tracts of Residential Land Therefore, you need a broker, a CCIM (Certified Commercial Investment Member) who is a recognized expert in the commercial and investment real estate industry and who understands your needs. I am marketing my listings on Costar, Loop-net, CCIM, CREXi, Catylist, and various other web sites. I also sold hundreds millions of dollars’ worth of Investment Properties / Owner User Properties in Retail, Office Industrial, Multi-family and Land in Arizona and therefore I am working with brokers, Investors and Developers. I am also a CCIM and through this origination ( www.ccim.com ) I have access to marketing not only in the United States, but also international
What is a CCIM. In Business and in Life you don’t get what you deserve, you get what you Negotiate.
contact me if you want the me to get you the value of your property.
Walter Unger CCIM – cell: 520-975-5207 – walterunger@ccim.net
Click here to find out what is a CCIM:
CLICK HERE TO VIEW ALL MY LISTINGS.
Are you ready to sell or purchase your Land or Commercial Building in Phoenix, Scottsdale, Maricopa County and Pinal County, Arizona, please call me?
Walter Unger CCIM cell: 520-975-5207 walterunger@ccim.net
Walter Unger CCIM
Associate Broker
West USA Commercial Division
7077 E MARILYN RD.
Suite 200, Building 4.
Scottsdale AZ, 85254
Phone: 480-948-5554
Cell: 520-975-5207
History of Arizona from 900 BC – 2017 -Timeline.
History of Arizona from 900 BC – 2017 -Timeline.
History of Arizona from 900 BC – 2017 -Timeline.
WHY PHOENIX? AMAZING!!! POPULATION IN 1950 – 350 K PEOPLE; “NOW 5 MIL”. – “5TH. BIGGEST CITY IN USA”
- DEMOGRAPHIC FACTS ABOUT MARICOPA COUNTY:
Walter Unger CCIM – walterunger@ccim.net – 1-520-975-5207 – http://walter-unger.com
Timeline of Phoenix, Arizona history
Facts of Arizona – year 1848 to 2013
CLICK HERE: Arizona Opportunity Zones As We Understand /maps. Interested!!! Please contact me.
Feel free to contact Walter regarding any of these stories, the current market, distressed commercial real estate opportunities and needs, your property or your Investment Needs for Comercial Properties in Phoenix, Tucson, Arizona.
Walter Unger CCIM
Associate Broker
West USA Commercial Division
7077 E MARILYN RD.
Suite 200, Building 4.
Scottsdale AZ, 85254
Phone: 480-948-5554
Cell: 520-975-5207
FOR OVER 20 YEARS, I HAVE WORKED EXTENSIVELY WITH OWNERS AND BUYERS IN LAND, COMMERCIAL AND INVESTMENT REAL ESTATE IN PHOENIX, TUCSON AND THROUGHOUT ARIZONA. PLEASE LET ME KNOW HOW I CAN HELP YOU PLEASE CALL ME
CLICK HERE TO VIEW ALL MY LISTINGS.
Also Call me if you need an estimated value of your Property.
Call me if you want to see a map with what is in the Construction Pipeline for Apartments.
Prefer cell: 520-975-5207, or email me walterunger@ccim.net. CLICK HERE TO VIEW ALL MY LISTINGS.
Check out my professional profile and connect with me on LinkedIn.
Walter Unger CCIM, CCSS, CCLS
I am a successful Commercial / Investment Real Estate Broker in Arizona now for 20 years. If you have any questions about Commercial / Investment Properties in Phoenix or Commercial / Investment Properties in Arizona, I will gladly sit down with you and share my expertise and my professional opinion with you. I am also in this to make money therefore it will be a win-win situation for all of us.
Please reply by e-mail walterunger@ccim.net or call me on my cell 520-975-5207
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