22 May, 2018
sector companies spend valuable time and resources when evaluating their office
location. In the past, their options
a 15-block range in the CBD and East End.
However, new development is changing
both where companies move in the core and the emerging non-core submarkets (NoMa,
Market District, Ballpark and Southwest).
• From 2011
to 2014, there were 29 private sector relocations > 40,000 s.f. in
and East End and from 2015 to today, the number of relocations in the CBD and East End jumped to 36, a 24% increase. The
increase in relocations in recent years has largely benefitted the CBD due to
new construction. Of the
17 relocations in the CBD since 2015, seven were tenants previously located in
the East End
with six of those relocations to new construction
of the more significant trends in the office market though is tenants across
all industries expanding their geographic boundaries. From 2011 to 2014, there
were seven private sector relocations > 40,000 s.f.
in the non-core submarkets. In the past 40 months, relocations more than
doubled to 16 with Southwest posting the most with four private sector
relocations since 2015.
new construction options outside of the Wharf offering a 30% rent discount to
the core and relet Class A options offering a 25%
discount to the core, non-core submarkets have become an increasingly viable
option for many companies as they evaluate their real estate decision and that
trend will only gain steam as markets like the Yards and Market District
deliver their first office product ahead.
Source: JLL Research