The requested news item does not exist. Please return to News
Western United States dominates gains; high-tech and energy still driving demand
“We are starting to see a lag develop between office market performance and the current economic volatility,” said John Sikaitis, Director of Office Research, Jones Lang LaSalle. We typically see transactions slow during the summer months; however, this slowdown in leasing volume was compounded by the declining confidence levels of senior executives who have once again put hiring and growth plans on the sidelines.”
Stable rentsOverall, rents across the United States remained stable over the course of the third quarter, inching up approximately 30 cents per square foot to $27.74 per square foot. The pricing growth realized during the quarter was largely driven by more substantial rent increases in only a few markets rather than movement across all markets. The San Francisco Peninsula, San Francisco, San Antonio, Miami, New York, Philadelphia and Austin markets displayed the largest quarter- over-quarter rental increases, with the San Francisco Peninsula and San Francisco markets commanding premiums greater than 3 percent compared to the second-quarter 2011 averages due to a continued increase in technology demand.
In contrast, the industrial Midwest markets of Detroit, Cleveland and Cincinnati, along with the Sunbelt markets of Phoenix, Jacksonville and Tampa Bay, displayed the largest declines over the quarter. Each market demonstrated rents moving downward at rates greater than 1 percent for the quarter.
“The increased uncertainty in the global economy, combined with smaller amounts of near-term lease rolls due to ‘blend and extend’ leases undertaken in 2010, have pushed leasing activity levels down substantially from prior periods,” said Sikaitis. “While we continue to see positive absorption overall, only select markets are seeing real rental rate increases.”
About Jones Lang LaSalleJones Lang LaSalle (NYSE:JLL) is a financial and professional services firm specializing in real estate. The firm offers integrated services delivered by expert teams worldwide to clients seeking increased value by owning, occupying or investing in real estate. With 2010 global revenue of more than $2.9 billion, Jones Lang LaSalle serves clients in 70 countries from more than 1,000 locations worldwide, including 200 corporate offices. The firm is an industry leader in property and corporate facility management services, with a portfolio of approximately 1.8 billion square feet worldwide. LaSalle Investment Management, the company’s investment management business, is one of the world’s largest and most diverse in real estate with $45.3 billion of assets under management. For further information, please visit our website, www.joneslanglasalle.com.
+1 312 228 2387