Commercial real estate is a dynamic industry. Keep up with monthly happenings with Spaces’ recaps of the most valuable industry articles we’ve recently come across, focused on news in Ohio, Michigan and Pennsylvania.
Real Estate Investors Go Green in 2012
The winter months are upon us, but real-estate owners and investors continue to emphasize the benefits of going green. According to Jones Lang LaSalle’s Global Sustainability Perspective report, “the vast majority of commercial real estate owners have spent money on green strategies in the past year…”
Research shows that sustainable initiatives do more than simply boost the environment; they also give businesses a tangible advantage. However, JLL also found that the majority of investments related to “green strategies” are small-to-medium sized projects that don’t solicit financing. These investments have a positive impact on profits and overall image, but are not forecasted to alter rent prices.
Unemployment Report & Impacts on Real Estate
Allen McDuffee (@allen_mcduffee), of the Washington Post’s Think Tanked, said that November resulted in 146,000 additional jobs in the U.S. As a result, “the unemployment rate fell to 7.7 percent, the lowest since December 2008.” But, how long will it last?
According to McDuffee, “the long-term trends are cause for major concern.” During 2007-2009, statistics show that Americans experienced a shocking number of job losses in comparison to the recessions in 1981-1982, 1990-1991 and 2001. Concurrently, the long-term unemployment rates continue to spike.
The Real Estate Perspective
In the JLL U.S. employment situation report for November 2012, our experts found that job growth in 2012 will likely not reach the level seen last year. To date, the ongoing recovery has resulted in 4.3 million new jobs, which accounts for almost half of jobs lost since the start of the recession. But what does it mean for the real estate sector in the coming year?
In discussing commercial real estate forecasts for 2013, JLL representatives predicted increased growth during the second half of 2013, especially in the hotel, multifamily and industrial markets. However, the National Association of Realtors made the following 2013 predictions: “Vacancy rates over the next four quarters are forecast to decline 1.0 percentage point in the office market, 0.6 point in industrial, 0.2 point for retail and 0.1 point in multifamily.”
As the unemployment rate decreases, commercial real estate will benefit as organizations need to adapt their space needs to accommodate growing staff.
News Wrap Up: In Our Region
Cincinnati
- DunnhumbyUSA continues to evolve relocation plans to Fifth and Race Streets. The initial space request has increased significantly. The project has grown to include “a 1,000-space parking garage, 35,000 square feet of commercial space and 280,000 square feet in a four-story office building.”
- Currently located at 600 Vine, FirstGroup America is seeking new headquarters.
Cleveland
- American Greetings has halted plans for construction on new headquarters in Westlake. The pending project will depend on the acceptance or denial of a buyout offer of $580.7 million.
- A large insurance company displays loyalty for the city. Oswald Cos. Insurance is relocating its offices (and 220 employees) from the IMG Center to 1100 Superior. Oswald is dedicated to remaining downtown.
Columbus
- Two FBI headquarters will join in a new singular location in the Arena District at 425 W. Nationwide Blvd. Their new space totals 44,926 square feet.
- Located in northwest Columbus, IBM is developing a new Client Center focused on Advanced Analytics. The new establishment will create an additional 500 jobs. Concurrently, IBM is partnering with Ohio State University to create educational programs involving business analytics.
Detroit
- Dan Gilbert, founder of Quicken Loans Inc., bought out One Woodward Building in downtown Detroit. The space, rumored to be sold at $8.5 million, is 333,000 square feet.
- United Shore Financial Services (USFS), one of the largest mortgage bankers in the United States, purchased the 275,000-square-foot office building located at 1414 E Maple Road in the Troy submarket for $3.0 million ($11 per square foot).
Pittsburgh
- For 10 years, Tsudis Chocolate Co. leased space at 610 Alpha Drive before purchasing the building from The Regional Development Corporation. The building, purchased for $3.9 million, is 97,500 square feet.
- After purchasing the Fiserv building, The Elmhurst Group has concluded negotiations to maintain Fiserv as a tenant. Fiserv downsized its space within the building, leaving open space for new tenants.
Please feel free to add any relevant industry news we might have missed in the comment section below.
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