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At Cassidy Turley, we are market leaders, industry leaders and community leaders.Nationwide, clients recognize us for the creative sophistication of our real estate adviceas well as for the discipline and accuracy of our service delivery. We are a trusted partnerand advocate, supporting our clients’ overall business performance. In markets across thecountry, we are respected as a leading provider of commercial real estate services as wellas for our community engagement. Our thorough understanding of local business practicesand market dynamics, combined with our customer focus and service commitment, give ourclients a distinct edge in commercial real estate across the globe.
Citation preview
4th Quarter 2013
U.S. Of ce Trends Report
2 | Cassidy Turley
Contents
U.S. Of ce Sector Analysis........................................................................3-4
Investment Sales.........................................................................................5
Net Absorption by Metro............................................................................6-7
Vacancy Rates by Metro.............................................................................8-9
Asking Rents by Metro...........................................................................10-11
Inventory by Metro................................................................................12-13
Methodology..............................................................................................14
Jennifer EdwardsResearch Manager2101 L Street, NW, Ste. 700Washington, DC [email protected]
Kevin ThorpeChief Economist2101 L Street, NW, Ste. 700Washington, DC [email protected]
cassidyturley.com | 3
Economy
The U.S. economy shook off Octobers 16-day partial government shutdown and nished 2013 on a surprisingly strong note. Real GDP growth registered a healthy 4.1% in the third quarter of the year, and the latest data on business and consumer spending indicates GDP growth will again exceed 3% in the fourth quarter. Remember that GDP growth has averaged just a tick above 2% during most of this economic recovery, so the latest trends do represent a signi cant acceleration. On the jobs front, the latest data was also mostly good news. Despite a weak December 2013 job growth gure (likely an anomaly caused by unseasonably cold winter weather and one that is likely to be revised upwards next month), the U.S. economy created 2.2 million net new jobs in 2013. The unemployment rate declined from 7.9% at the beginning of the year to 6.7% at the end. Vital to the commercial real estate sector, of ce-using employment continues to accelerate. The U.S. created 721,000 of ce-using jobs in 2013, up from 696,000 in 2012 and 570,000 in 2011. That said, it is worth noting that law rms, key of ce tenants in most major metros, continued to cut jobs in 2013 (a net decline of 1,300). But other job sectors such as professional and business services, energy, tech, and media remained in growth mode. The ADP survey revealed that job growth was broad-based across all industry sizes. Small businesses (with 1-49 employees) led the way, adding 835,000 nonfarm payrolls in 2013. Medium-sized companies (50-499) added 535,000 jobs, and large businesses (500+) added 498,000 jobs.
We also got a small dose of positive news, or at least, less terrible news, on the policy side of things. The Congress reached a budget deal in December of 2013 - the Bipartisan Budget Act of 2013 - that will effectively keep the federal government funded through the fall of 2015. Although the deal did not address the long-term de cit challenges from ballooning entitlement programs, the accord did eliminate a portion of the sequestration cuts that were scheduled to occur in 2014 and 2015. As a result, scal policy (i.e., higher taxes and spending cuts which knocked 1.5 percentage points off of real GDP growth in 2013), will restrain growth in 2014 by an estimated 0.3% - far less of drag.
Of ce Sector
Taking its cue from the economy, the U.S. of ce sector also picked up steam towards the end of the year. In the fourth quarter of 2013, U.S. of ce markets absorbed 15.6 million square feet (msf), up from the 15.3 msf absorbed in the third quarter. In total, the U.S. absorbed 51.6 msf of of ce space in 2013, slightly higher than the 50.1 msf absorbed in 2012. Vacancy rates in the fourth quarter fell 20 basis points (bps) to 15.1%. Vacancy is currently 220 bps lower than its recessionary-peak of 17.3%, but remains 120 bps higher than its historical average.
Although the market fundamentals continue to slowly tighten, this is occurring at a much slower rate than in past recoveries. Job growth is no longer the issue. For instance, of ce-using job growth in 2013 was roughly the same as job growth in 2005 (real estate boom year), but net absorption in 2013 was 37 msf less. With another year of data under our belts, it is clear to see that the subpar demand in the current recovery directly re ects a shift in the way businesses are utilizing space (e.g., more people in less space, shared workstations, encouraging telecommuting). In our view, this is a trend that will continue into the foreseeable future, and one which will keep net growth in the of ce sector well below what one would normally expect during a recovery.
Of ce cont.
U.S. Of ce Sector Analysis
U.S. Net Absorption vs. Vacancy
Source: Cassidy Turley ResearchSource: Cassidy Turley Research
-1.5
-0.5
0.5
1.5
2.5
3.5
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6.5
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ount
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d-Ea
st B
aySu
burb
an V
ALo
s An
gele
s
(msf
)
15.0%
15.5%
16.0%
16.5%
0
4
8
12
16
20
24
Q4
11
Q1
12
Q2
12
Q3
12
Q4
12
Q1
13
Q2
13
Q3
13
Q4
13
Vaca
ncy
Rat
e
(msf
)
Absorption Vacancy Rate
Market Indicators4th Quarter 2013
Net Absorption 15.6M
Asking Rents $22.00
Vacancy
Under Construction
15.1%
57.1M
20134Q
Trend(from previous Qtr)
Net Absorption, Selected Markets 2013
4 | Cassidy Turley
Asking RentsSelect Markets, Avg. Rent 2013
New York, NY $63.20 9.5%
Washington, DC $49.40 -0.8%
San Francisco, CA $49.16 11.4%
San Mateo County, CA $42.06 4.9%
Suburban VA $31.59 0.3%
Los Angeles, CA $30.87 3.3%
San Diego, CA $29.97 4.3%
Boston-Cambridge, MA $29.93 -1.1%
San Jose-Silicon Valley, CA $29.68 7.3%
Suburban MD $26.58 0.6%
Houston, TX $25.19 2.3%
Northern NJ $24.90 0.5%
Orange County, CA $23.83 1.4%
Minneapolis, MN $23.71 -3.7%
Central NJ $23.66 -1.2%
Baltimore, MD $22.62 3.4%
Denver, CO $21.80 7.8%
Oakland-East Bay, CA $21.20 4.4%
Dallas, TX $21.08 5.6%
Charlotte, NC $20.67 0.8%
Phoenix, AZ $20.45 0.9%
Nashville, TN $20.23 3.9%
Sacramento, CA $19.98 1.4%
Columbus, OH $19.78 7.1%
Tampa, FL $19.61 -1.5%
Raleigh, NC $19.43 -0.9%
Atlanta, GA $19.08 0.7%
Saint Louis, MO $18.67 -0.8%
Indianapolis, IN $18.05 -0.1%
Cincinnati, OH $18.05 -1.4%
Kansas City, MO $18.02 0.6%
Milwaukee, WI $17.56 -2.2%
Louisville, KY $16.97 2.3%
Dayton, OH $14.35 0.2%
Source: Cassidy Turley Research
U.S. Of ce Sector Analysis
Bipartisn Budget Act of 2013Caps on Discretionary Spending, $ Trillions
Source: CBO, HBO
Developers are clearly savvy to the trend of shrinking square feet per worker, as new supply remains extremely lean. Just 33.3 msf of new of ce buildings delivered in 2013. Although that level is up from 24.6 msf in 2012, it is still about 50% below the norm. The lack of new supply has proven to be a more powerful force than has the lack of demand. In 2013, vacancy did register declines in 48 out of the 82 metros tracked. With vacancy declining in most areas of the country, rental rates are beginning to creep upward, albeit slowly. In the fourth quarter of 2013, average asking rents increased 10 cents from the previous quarter to $22.00 per square foot (psf). Of ce rents appreciated by 1.5% in 2013 compared to 2012.
In terms of demand, the top 10 U.S. markets for 2013 were New York with 7.1 msf of net absorption, Dallas with 4.2 msf, Houston with 3.9 msf, San Jose/Silicon Valley with 2.4 msf, Atlanta with 2.3 msf, Denver with 1.9 msf, Boston with 1.7 msf, Seattle with 1.7 msf, Charlotte with 1.5 msf and Chicago registering 1.5 msf of absorption.
The top 10 U.S. markets in terms of 2013 rent growth were San Francisco with average rents up 11.4%, New York up 9.5%, Denver up 7.8%, San Jose/Silicon Valley up 7.3%, Austin up 7.0%, Dallas, up 5.6%, Salt Lake City up 5.5%, San Mateo County up 4.9%, Oakland-East Bay up 4.4% and San Diego posting a 4.3% rent growth.
Investments sales registered another solid recovery year. From Jan-Nov of 2013, sales of signi cant of ce buildings totaled $82.2 billion, up 29% from the same period a year ago. Even assuming a mediocre December (when the data rolls in), 2013 will exceed the sales volume of 2004 (year one of the last real estate boom) and will be close to the level reached in 2005. 2013 was also a strong year for price appreciation, with CBD asset values growing by 13% and suburban assets increasing by 7% compared to the previous year.
Outlook
The stage is set, yet again, for the recovery to morph into something more robust. Given the strong economic data observed at the end of 2013, along with a small breakthrough with respect to scal policy, we are cautiously optimistic that 2014 will nally deliver a GDP growth number north of 3% and that job growth will accelerate.
Demand for of ce space, as weak as it has been throughout the current recovery, has actually exceeded new supply for two straight years. The trend towards space ef ciency will continue in 2014, but stronger job creation will keep demand above new supply for at least one more year. Assuming the current rate of absorption going forward, vacancy levels will decline to equilibrium in most markets by the midpoint of 2014. In half of the country mostly in energy and tech markets the pendulum has already shifted from a rent-declining tenants market to a rent-rising landlords one. By the second half of next year, the majority of the country will see rents pushing upwards.
Source: U.S. Bureau of Labor Statistics
-2000
-1500
-1000
-500
0
500
1000
06 07 08 09 10 11 12 13
721,000
$0.90
$0.95
$1.00
$1.05
$1.10
$1.15
$1.20
$1.25
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021Original Budget Sequester Budget Agreement
Rents Yr/Yr % Chg.
Of ce-using EmploymentYr/Yr Change, 000s
cassidyturley.com | 5
Investment Sales
U.S. Of ce Acquisitions by Buyer Type
Source: Real Capital Analytics
Source: Real Capital Analytics
U.S. Of ce Sales Volume
U.S. Of ce Cap Rates
Source: Real Capital Analytics
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
Nov
-08
Mar
-09
Jul-
09
Nov
-09
Mar
-10
Jul-
10
Nov
-10
Mar
-11
Jul-
11
Nov
-11
Mar
-12
Jul-
12
Nov
-12
Mar
-13
Jul-
13
Nov
-13
CBD Suburban
$0
$40
$80
$120
$160
$200
$240
01 02 03 04 05 06 07 08 09 10 11 12 Q1-312
Q1-313
Billion
s
Cross-Border Inst'l/Eq Fund Listed/REITs Private User/other
$0
$2
$4
$6
$8
$10
$12
$14
$16
$18
Nov
-08
Mar
-09
Jul-
09
Nov
-09
Mar
-10
Jul-
10
Nov
-10
Mar
-11
Jul-
11
Nov
-11
Mar
-12
Jul-
12
Nov
-12
Mar
-13
Jul-
13
Nov
-13
Billion
s
Avg. = $4.9B
Source: Real Capital Analytics, Cassidy Turley Research
Of ce Sale VolumeSelect Markets, Jan - Nov 2013
$ Volume(Millions)
Avg PSF
Manhattan, NY $17,344.9 $744
Los Angeles, CA $7,857.4 $263
Washington DC Metro $5,923.3 $358
Houston, TX $4,776.9 $220
Chicago, IL $4,594.8 $176
Atlanta, GA $3,144.0 $151
Boston, MA $3,116.3 $252
Dallas, TX $2,977.9 $146
San Jose, CA $2,638.1 $330
Seattle, WA $2,594.3 $305
San Francisco, CA $2,488.6 $417
Denver, CO $1,940.9 $194
Austin, TX $1,668.5 $211
Northern NJ $1,419.6 $129
San Diego, CA $1,244.0 $272
Orange County, CA $1,215.8 $222
Philadelphia, PA $1,135.2 $135
Minneapolis, MN $1,096.7 $123
Phoenix, AZ $1,016.8 $136
Milwaukee, WI $914.8 $149
Charlotte, NC $799.5 $150
East Bay, CA $698.6 $215
Miami, FL $690.0 $249
Las Vegas, NV $665.6 $191
Nashville, TN $592.6 $124
Saint Louis, MO $432.7 $93
Detroit, MI $423.7 $82
Portland, OR $409.0 $177
Orlando, FL $387.5 $89
Tampa, FL $377.4 $118
Baltimore, MD $359.9 $115
Raleigh/Durham, NC $331.3 $158
Indianapolis, IN $319.0 $86
NYC Boroughs $312.0 $261
Columbus, OH $307.5 $105
San Antonio, TX $289.4 $112
Inland Empire, CA $279.0 $133
Broward, FL $271.7 $98
Salt Lake City, UT $253.4 $150
Pittsburgh, PA $252.7 $109
Long Island, NY $219.8 $126
Sacramento, CA $180.1 $146
Cincinnati, OH $136.7 $41
Kansas City, MO $123.3 $52
6 | Cassidy Turley
2011 2012 2013 2012 4Q 2013 1Q 2013 2Q 2013 3Qr 2013 4Qp
United States 53,105,000 50,075,000 51,593,000 22,368,000 5,865,000 14,808,000 15,310,000 15,611,000
Northeast 6,920,000 3,687,000 13,006,000 2,974,000 484,000 4,155,000 2,831,000 5,537,000
Midwest 2,800,000 5,211,000 6,842,000 2,448,000 575,000 2,789,000 1,834,000 1,644,000
South 19,378,000 20,850,000 19,512,000 8,233,000 3,503,000 3,149,000 6,308,000 6,552,000
West 24,007,000 20,327,000 12,233,000 8,713,000 1,303,000 4,715,000 4,337,000 1,878,000
Albuquerque, NM 58,000 113,000 15,000 140,000 41,000 171,000 -105,000 -92,000
Anaheim-Santa Ana, CA 1,581,000 1,043,000 686,000 352,000 219,000 390,000 206,000 -130,000
Atlanta-Sandy Springs-Marietta, GA -97,000 1,624,000 2,285,000 47,000 98,000 708,000 614,000 865,000
Austin-Round Rock, TX 2,155,000 1,408,000 631,000 754,000 94,000 203,000 68,000 265,000
Baltimore, MD 778,000 710,000 1,028,000 162,000 218,000 215,000 344,000 251,000
Birmingham-Hoover, AL 377,000 255,000 35,000 119,000 1,000 141,000 13,000 -121,000
Boston-Cambridge, MA 622,000 691,000 1,749,000 771,000 610,000 290,000 313,000 537,000
Buffalo-Niagara Falls, NY 322,000 195,000 -530,000 73,000 13,000 -31,000 -3,000 -509,000
Charleston-North Charleston, SC 285,000 255,000 72,000 186,000 -132,000 125,000 -1,000 80,000
Charlotte-Gastonia-Concord, NC-SC 695,000 998,000 1,570,000 623,000 423,000 257,000 452,000 439,000
Chattanooga, TN-GA 96,000 53,000 -186,000 -20,000 -79,000 -88,000 -18,000 -2,000
Chicago-Joliet-Naperville, IL-IN-WI -517,000 2,328,000 1,503,000 940,000 89,000 780,000 659,000 -24,000
Cincinnati-Middletown, OH-KY-IN 263,000 109,000 279,000 21,000 101,000 -65,000 109,000 135,000
Cleveland-Elyria-Mentor, OH -175,000 107,000 349,000 541,000 -307,000 372,000 165,000 118,000
Colorado Springs, CO 575,000 245,000 364,000 25,000 225,000 146,000 -3,000 -4,000
Columbia, SC 308,000 -374,000 -34,000 24,000 -57,000 -34,000 26,000 30,000
Columbus, OH 555,000 290,000 39,000 164,000 -244,000 100,000 135,000 48,000
Dallas, TX 2,738,000 3,044,000 4,161,000 2,379,000 808,000 -226,000 1,679,000 1,900,000
Dayton, OH 83,000 314,000 264,000 82,000 N/A 13,000 70,000 181,000
Denver-Aurora, CO 1,532,000 1,643,000 1,912,000 535,000 576,000 387,000 726,000 222,000
Detroit-Warren-Livonia, MI 1,185,000 36,000 379,000 107,000 126,000 -19,000 174,000 98,000
Fair eld, CT 720,000 -256,000 5,000 -276,000 26,000 -96,000 17,000 59,000
Ft. Lauderdale, FL 136,000 195,000 470,000 -14,000 10,000 199,000 73,000 187,000
Greensboro-Winston-Salem, NC 208,000 297,000 -104,000 64,000 -57,000 35,000 -66,000 -15,000
Greenville, SC 199,000 324,000 156,000 10,000 -31,000 222,000 -64,000 29,000
Hartford-West Hartford-East Hartford, CT -147,000 -47,000 176,000 74,000 -45,000 157,000 -94,000 159,000
Honolulu, HI 107,000 197,000 145,000 18,000 79,000 2,000 32,000 31,000
Houston, TX 2,646,000 4,546,000 3,946,000 851,000 -147,000 551,000 1,977,000 1,565,000
Indianapolis, IN -188,000 454,000 493,000 204,000 210,000 112,000 56,000 115,000
Jacksonville, FL 630,000 89,000 115,000 -106,000 -50,000 94,000 191,000 -120,000
Kansas City, MO-KS 457,000 606,000 453,000 332,000 180,000 148,000 76,000 50,000
Knoxville, TN 153,000 157,000 -251,000 -1,000 -30,000 -15,000 -11,000 -195,000
Las Vegas-Paradise, NV 994,000 925,000 271,000 348,000 -68,000 435,000 -113,000 16,000
Lexington-Fayette,KY 27,000 119,000 -111,000 170,000 15,000 -14,000 -105,000 -7,000
Little Rock-N. Little Rock, AR 22,000 -12,000 5,000 19,000 -14,000 38,000 -69,000 50,000
Los Angeles-Long Beach-Glendale, CA 597,000 871,000 -404,000 364,000 -552,000 -131,000 396,000 -117,000
Louisville, KY-IN 462,000 395,000 364,000 92,000 -61,000 76,000 103,000 247,000
Madison, WI -46,000 231,000 160,000 62,000 -21,000 11,000 81,000 89,000
Memphis, TN-MS-AR 215,000 72,000 -93,000 98,000 -88,000 0 -62,000 58,000
Miami-Dade, FL 1,018,000 1,521,000 1,315,000 269,000 249,000 316,000 290,000 461,000
Milwaukee-Waukesha-West Allis, WI 290,000 79,000 350,000 -151,000 123,000 68,000 -11,000 170,000
Minneapolis-St. Paul-Bloomington, MN-WI 1,017,000 438,000 957,000 247,000 450,000 197,000 285,000 25,000
Nashville-Davidson-Murfreesboro, TN 744,000 1,102,000 37,000 225,000 154,000 -49,000 -122,000 54,000
New Haven-Milford, CT 240,000 100,000 -118,000 29,000 -79,000 29,000 -28,000 -39,000
Net Absorption
cassidyturley.com | 7
Net Absorption2011 2012 2013 2012 4Q 2013 1Q 2013 2Q 2013 3Qr 2013 4Qp
New Orleans-Metairie-Kenner, LA 253,000 227,000 -52,000 26,000 -124,000 50,000 41,000 -20,000
New York, NY 4,217,000 2,602,000 7,101,000 843,000 -943,000 1,542,000 1,284,000 5,217,000
Long Island, NY 797,000 1,215,000 500,000 914,000 46,000 179,000 358,000 -83,000
Northern New Jersey -1,235,000 -900,000 385,000 -161,000 691,000 406,000 -81,000 -630,000
Central New Jersey -140,000 -469,000 1,062,000 -42,000 10,000 623,000 563,000 -134,000
Oakland-East Bay, CA 1,210,000 1,471,000 -91,000 579,000 -55,000 823,000 -263,000 -596,000
Oklahoma City, OK 413,000 2,722,000 -2,000 274,000 141,000 -69,000 -186,000 112,000
Omaha, NE-IA 144,000 45,000 702,000 -131,000 38,000 704,000 -169,000 129,000
Orlando, FL 1,232,000 414,000 832,000 276,000 -5,000 344,000 261,000 232,000
West Palm Beach-Boca Raton, FL 841,000 483,000 218,000 344,000 18,000 71,000 74,000 56,000
Philadelphia-Camden-Wilmington, PA-NJ 1,157,000 803,000 921,000 683,000 -48,000 249,000 64,000 656,000
Phoenix-Mesa-Scottsdale, AZ 653,000 1,726,000 1,358,000 1,135,000 -89,000 -24,000 881,000 591,000
Pittsburgh, PA 649,000 467,000 264,000 285,000 -93,000 411,000 192,000 -246,000
Portland-South Portland-Biddeford, ME -238,000 -120,000 295,000 54,000 75,000 74,000 83,000 62,000
Portland-Vancouver-Beaverton, OR-WA 905,000 774,000 54,000 315,000 -11,000 196,000 -140,000 9,000
Raleigh-Durham, NC 354,000 437,000 966,000 201,000 301,000 189,000 354,000 122,000
Rochester, NY 392,000 -231,000 9,000 -2,000 -59,000 30,000 109,000 -72,000
Sacramento-Arden-Arcade-Roseville, CA 71,000 1,469,000 1,247,000 830,000 178,000 366,000 437,000 266,000
Saint Louis, MO-IL -218,000 144,000 827,000 17,000 -39,000 285,000 196,000 385,000
Salt Lake City, UT 1,122,000 405,000 280,000 629,000 6,000 158,000 19,000 98,000
San Antonio, TX 346,000 1,085,000 491,000 582,000 207,000 118,000 111,000 55,000
San Diego-Carlsbad-San Marcos, CA 686,000 1,192,000 887,000 730,000 150,000 586,000 144,000 7,000
San Francisco, CA 2,945,000 2,114,000 1,117,000 427,000 194,000 172,000 227,000 525,000
San Jose-Silicon Valley, CA 5,544,000 3,588,000 2,445,000 1,229,000 -285,000 1,241,000 874,000 614,000
San Mateo County, CA 1,564,000 -588,000 218,000 -130,000 276,000 -521,000 584,000 -122,000
Seattle-Tacoma-Bellevue, WA 3,808,000 3,084,000 1,675,000 1,093,000 396,000 368,000 499,000 412,000
Suburban MD 553,000 364,000 219,000 429,000 459,000 -128,000 -28,000 -84,000
Suburban VA -120,000 -2,015,000 -132,000 -349,000 253,000 -95,000 57,000 -347,000
Syracuse, NY -109,000 -155,000 121,000 10,000 47,000 53,000 9,000 12,000
Tampa-St.Petersburg-Clearwater, FL 540,000 70,000 922,000 516,000 613,000 -259,000 241,000 328,000
Tucson, AZ 175,000 -65,000 -92,000 61,000 -31,000 -67,000 -34,000 40,000
Tulsa, OK 373,000 383,000 85,000 43,000 70,000 50,000 -53,000 18,000
Ventura County, CA -119,000 121,000 147,000 32,000 53,000 18,000 -30,000 106,000
Washington, DC 799,000 -95,000 551,000 -61,000 246,000 123,000 121,000 60,000
Wichita, KS -50,000 30,000 87,000 13,000 -131,000 83,000 9,000 126,000
Westchester, NY -328,000 -209,000 1,067,000 -282,000 233,000 240,000 44,000 550,000
Methodology and data sources explained on page 14p = preliminaryr = revision
8 | Cassidy Turley
2011 2012 2013 2012 4Q 2013 1Q 2013 2Q 2013 3Qr 2013 4Qp
(Quarterly Average)
United States 16.5% 15.8% 15.3% 15.5% 15.5% 15.2% 15.3% 15.1%
Northeast 15.7% 15.8% 15.4% 15.6% 15.6% 15.3% 15.4% 15.5%
Midwest 19.3% 19.0% 18.6% 19.0% 19.0% 18.6% 18.6% 18.4%
South 15.8% 14.6% 14.1% 14.2% 14.2% 14.1% 14.2% 13.9%
West 16.5% 15.5% 14.8% 15.1% 15.0% 14.8% 14.7% 14.6%
Albuquerque, NM 13.5% 14.1% 13.5% 13.6% 13.3% 12.8% 13.6% 14.3%
Anaheim-Santa Ana, CA 20.8% 18.4% 16.0% 17.1% 16.7% 15.9% 15.5% 15.7%
Atlanta-Sandy Springs-Marietta, GA 21.5% 20.1% 19.2% 19.7% 19.6% 19.3% 19.1% 18.6%
Austin-Round Rock, TX 14.9% 10.6% 8.6% 9.3% 9.0% 8.7% 8.7% 8.1%
Baltimore, MD 19.3% 18.7% 17.0% 18.5% 17.5% 17.1% 16.9% 16.6%
Birmingham-Hoover, AL 11.2% 10.2% 9.0% 9.5% 9.5% 8.7% 8.6% 9.3%
Boston-Cambridge, MA 14.4% 13.5% 12.0% 11.9% 12.2% 11.8% 12.2% 11.8%
Buffalo-Niagara Falls, NY 12.1% 11.0% 11.4% 10.7% 10.6% 10.8% 10.9% 13.3%
Charleston-North Charleston, SC 11.0% 10.3% 10.7% 9.2% 11.7% 10.1% 11.0% 10.0%
Charlotte-Gastonia-Concord, NC-SC 19.6% 17.9% 15.8% 17.8% 16.7% 16.5% 15.3% 14.6%
Chattanooga, TN-GA 14.9% 13.6% 16.9% 13.8% 15.3% 17.1% 17.5% 17.5%
Chicago-Joliet-Naperville, IL-IN-WI 18.4% 17.8% 17.0% 17.4% 17.3% 17.1% 16.8% 16.9%
Cincinnati-Middletown, OH-KY-IN 23.9% 24.5% 24.0% 25.0% 24.8% 24.2% 23.8% 23.3%
Cleveland-Elyria-Mentor, OH 20.5% 21.3% 22.5% 21.8% 22.6% 22.8% 22.4% 22.1%
Colorado Springs, CO 10.7% 9.3% 7.2% 9.2% 7.8% 6.8% 7.1% 7.1%
Columbia, SC 14.7% 15.7% 16.9% 16.7% 17.3% 17.6% 17.3% 15.6%
Columbus, OH 17.1% 15.8% 16.1% 15.6% 16.6% 15.6% 16.0% 16.1%
Dallas, TX 22.1% 21.0% 19.9% 20.6% 20.2% 20.1% 19.4% 19.8%
Dayton, OH 28.0% 27.0% 27.3% 27.7% 27.7% 27.0% 27.3% 27.3%
Denver-Aurora, CO 13.7% 12.8% 11.8% 12.4% 12.2% 12.1% 11.5% 11.5%
Detroit-Warren-Livonia, MI 24.5% 23.8% 23.1% 23.4% 23.3% 23.3% 23.0% 22.9%
Fair eld, CT 21.9% 21.4% 21.9% 21.7% 21.7% 22.2% 21.5% 22.1%
Ft. Lauderdale, FL 18.1% 17.1% 16.2% 17.1% 17.1% 16.3% 16.0% 15.4%
Greensboro-Winston-Salem, NC 18.3% 16.6% 16.5% 16.1% 16.4% 16.2% 16.6% 16.8%
Greenville, SC 18.1% 15.6% 13.0% 14.7% 15.0% 12.6% 13.3% 11.1%
Hartford-West Hartford-East Hartford, CT 22.9% 23.9% 23.2% 23.5% 23.6% 23.0% 23.5% 22.7%
Honolulu, HI 6.8% 6.2% 5.6% 5.9% 5.7% 5.7% 5.5% 5.4%
Houston, TX 15.5% 13.3% 13.3% 12.0% 12.1% 13.8% 13.9% 13.5%
Indianapolis, IN 20.6% 20.0% 19.5% 19.7% 19.5% 19.5% 19.6% 19.5%
Jacksonville, FL 17.3% 16.6% 16.5% 16.7% 16.8% 16.5% 15.8% 16.7%
Kansas City, MO-KS 21.6% 20.8% 19.4% 19.8% 19.5% 19.2% 19.2% 19.6%
Knoxville, TN 17.1% 13.1% 14.3% 13.1% 13.4% 13.6% 13.8% 16.5%
Las Vegas-Paradise, NV 21.8% 20.6% 17.8% 18.7% 18.9% 17.2% 17.6% 17.6%
Lexington-Fayette,KY 18.6% 19.1% 18.2% 17.1% 16.8% 17.1% 19.4% 19.5%
Little Rock-N. Little Rock, AR 11.5% 11.4% 11.8% 12.0% 12.1% 11.6% 12.4% 11.2%
Los Angeles-Long Beach-Glendale, CA 17.6% 17.3% 18.0% 17.1% 18.0% 18.3% 17.9% 17.9%
Louisville, KY-IN 15.6% 14.8% 14.3% 16.1% 14.2% 14.8% 14.6% 13.5%
Madison, WI 10.2% 9.7% 9.8% 9.5% 9.6% 9.5% 9.9% 10.1%
Memphis, TN-MS-AR 18.8% 18.0% 18.6% 17.7% 18.1% 18.7% 19.0% 18.7%
Miami-Dade, FL 14.2% 11.7% 9.2% 10.7% 10.3% 9.6% 9.0% 7.9%
Milwaukee-Waukesha-West Allis, WI 20.9% 20.8% 20.9% 21.7% 21.2% 20.9% 20.9% 20.4%
Minneapolis-St. Paul-Bloomington, MN-WI 17.7% 17.8% 16.5% 17.5% 16.9% 16.6% 16.2% 16.2%
Nashville-Davidson-Murfreesboro, TN 10.9% 9.9% 9.4% 9.2% 8.9% 9.1% 9.8% 9.7%
Of ce Vacancy Rates
cassidyturley.com | 9
Of ce Vacancy Rates2011 2012 2013 2012 4Q 2013 1Q 2013 2Q 2013 3Qr 2013 4Qp
(Quarterly Average)
New Haven-Milford, CT 16.1% 15.8% 16.3% 15.5% 16.2% 16.1% 16.3% 16.6%
New Orleans-Metairie-Kenner, LA 10.1% 9.6% 9.6% 9.4% 9.8% 9.7% 9.5% 9.6%
New York, NY 13.0% 12.7% 11.3% 11.6% 11.8% 11.4% 11.2% 10.8%
Long Island, NY 16.2% 16.0% 14.4% 15.5% 14.7% 14.2% 14.0% 14.6%
Northern New Jersey 14.2% 15.0% 15.1% 15.2% 14.7% 15.1% 15.1% 15.5%
Central New Jersey 16.7% 16.8% 15.3% 17.1% 17.1% 15.1% 14.6% 14.6%
Oakland-East Bay, CA 17.9% 16.9% 15.9% 16.1% 16.2% 15.4% 15.7% 16.2%
Oklahoma City, OK 16.2% 13.2% 11.2% 11.4% 10.6% 10.9% 11.8% 11.5%
Omaha, NE-IA 14.4% 14.9% 15.6% 15.7% 15.6% 15.2% 16.2% 15.5%
Orlando, FL 13.8% 12.2% 11.1% 11.9% 12.1% 11.1% 10.8% 10.4%
West Palm Beach-Boca Raton, FL 14.9% 13.8% 12.3% 12.7% 12.7% 12.4% 12.1% 11.9%
Philadelphia-Camden-Wilmington, PA-NJ 13.3% 13.1% 13.2% 13.1% 13.5% 13.3% 13.2% 12.7%
Phoenix-Mesa-Scottsdale, AZ 24.1% 23.4% 21.5% 22.1% 22.0% 22.1% 21.2% 20.6%
Pittsburgh, PA 14.8% 14.5% 14.4% 14.0% 14.5% 14.3% 14.1% 14.7%
Portland-South Portland-Biddeford, ME 11.3% 12.1% 11.5% 12.5% 12.1% 11.7% 11.2% 10.9%
Portland-Vancouver-Beaverton, OR-WA 12.9% 11.9% 11.1% 11.3% 11.3% 10.9% 11.2% 11.2%
Raleigh-Durham, NC 17.6% 16.4% 14.2% 15.1% 14.8% 14.3% 14.0% 13.7%
Rochester, NY 14.1% 15.4% 16.0% 15.7% 16.0% 15.9% 15.9% 16.3%
Sacramento-Arden-Arcade-Roseville, CA 17.7% 17.1% 15.5% 16.2% 16.1% 15.5% 15.3% 14.9%
Saint Louis, MO-IL 16.0% 16.3% 15.7% 16.5% 16.6% 16.0% 15.5% 14.7%
Salt Lake City, UT 12.1% 11.5% 11.4% 11.0% 11.3% 11.6% 11.5% 11.4%
San Antonio, TX 17.7% 16.9% 16.6% 16.7% 16.9% 16.6% 16.5% 16.3%
San Diego-Carlsbad-San Marcos, CA 19.3% 18.2% 17.9% 17.7% 18.0% 17.9% 17.7% 18.0%
San Francisco, CA 12.4% 9.3% 8.5% 8.9% 8.7% 8.5% 8.5% 8.2%
San Jose-Silicon Valley, CA 15.4% 13.4% 12.7% 13.0% 13.2% 12.6% 12.6% 12.2%
San Mateo County, CA 13.2% 13.3% 13.4% 13.6% 13.2% 14.2% 13.0% 13.3%
Seattle-Tacoma-Bellevue, WA 15.1% 12.4% 11.0% 11.6% 11.2% 11.3% 10.9% 10.7%
Suburban MD 15.4% 15.5% 15.9% 15.5% 15.7% 16.0% 15.9% 16.0%
Suburban VA 14.1% 15.9% 16.9% 16.4% 16.4% 16.7% 17.0% 17.6%
Syracuse, NY 14.2% 15.9% 15.2% 16.0% 15.6% 15.2% 15.0% 15.0%
Tampa-St.Petersburg-Clearwater, FL 20.7% 20.1% 19.0% 19.6% 18.9% 19.3% 18.9% 18.7%
Tucson, AZ 14.5% 14.8% 16.1% 14.9% 15.3% 16.2% 16.7% 16.1%
Tulsa, OK 16.4% 15.0% 14.3% 14.3% 13.9% 14.0% 14.6% 14.5%
Ventura County, CA 24.0% 23.7% 24.3% 24.3% 24.4% 23.9% 24.5% 24.4%
Washington, DC 10.4% 10.4% 10.4% 10.6% 10.4% 10.3% 10.2% 10.6%
Wichita, KS 17.4% 17.4% 17.5% 17.3% 18.3% 17.7% 17.6% 16.3%
Westchester, NY 20.2% 20.3% 20.2% 20.2% 19.2% 19.0% 22.0% 20.5%
Methodology and data sources explained on page 14p = preliminaryr = revision
10 | Cassidy Turley
2011 2012 2013 2012 4Q 2013 1Q 2013 2Q 2013 3Qr 2013 4Qp
(Quarterly Average)
United States $21.47 $21.75 $21.86 $21.67 $21.73 $21.82 $21.90 $22.00
Northeast $23.93 $24.46 $24.46 $24.06 $24.36 $24.24 $24.49 $24.75
Midwest $18.26 $18.25 $18.01 $18.06 $18.04 $18.05 $18.04 $17.93
South $20.60 $20.69 $20.72 $20.70 $20.65 $20.71 $20.73 $20.77
West $23.23 $23.80 $24.31 $23.86 $23.97 $24.29 $24.39 $24.58
Albuquerque, NM $15.58 $15.29 $15.03 $15.21 $15.28 $15.00 $14.87 $14.99
Anaheim-Santa Ana, CA $24.11 $23.50 $23.83 $23.47 $23.61 $23.68 $23.93 $24.10
Atlanta-Sandy Springs-Marietta, GA $18.77 $18.94 $19.08 $18.96 $18.91 $19.01 $19.07 $19.33
Austin-Round Rock, TX $24.36 $25.11 $26.88 $25.52 $26.16 $26.96 $26.93 $27.48
Baltimore, MD $22.19 $21.88 $22.62 $22.18 $22.28 $22.91 $22.58 $22.72
Birmingham-Hoover, AL $17.74 $17.92 $17.52 $17.79 $17.74 $17.60 $17.61 $17.16
Boston-Cambridge, MA $34.48 $34.98 $29.93 $28.94 $30.28 $29.51 $28.89 $31.02
Buffalo-Niagara Falls, NY $16.73 $16.70 $16.56 $16.61 $16.54 $16.72 $16.57 $16.44
Charleston-North Charleston, SC $19.01 $18.30 $17.21 $17.87 $16.80 $17.43 $17.35 $17.24
Charlotte-Gastonia-Concord, NC-SC $19.47 $20.50 $20.67 $20.81 $20.62 $20.49 $20.78 $20.80
Chattanooga, TN-GA $13.92 $15.02 $15.06 $14.93 $15.19 $15.09 $15.08 $14.86
Chicago-Joliet-Naperville, IL-IN-WI $24.43 $25.10 $24.70 $24.92 $24.81 $24.65 $24.57 $24.76
Cincinnati-Middletown, OH-KY-IN $18.15 $18.31 $18.05 $18.19 $18.16 $18.07 $18.07 $17.90
Cleveland-Elyria-Mentor, OH $17.83 $18.07 $17.45 $18.05 $17.51 $17.44 $17.41 $17.45
Colorado Springs, CO $16.04 $16.71 $15.62 $16.75 $16.72 $15.37 $15.28 $15.10
Columbia, SC $15.60 $15.51 $15.73 $15.62 $15.87 $15.73 $15.69 $15.65
Columbus, OH $17.11 $18.47 $19.78 $18.84 $19.67 $19.81 $19.81 $19.81
Dallas, TX $19.37 $19.95 $21.08 $20.05 $20.16 $20.93 $21.21 $22.00
Dayton, OH $14.56 $14.31 $14.35 $14.14 $14.14 $14.33 $14.46 $14.45
Denver-Aurora, CO $20.14 $20.22 $21.80 $20.55 $21.13 $21.99 $21.88 $22.19
Detroit-Warren-Livonia, MI $18.31 $17.91 $16.27 $17.67 $16.30 $16.30 $16.28 $16.22
Fair eld, CT $31.06 $32.61 $33.69 $32.19 $33.20 $32.59 $34.59 $34.37
Ft. Lauderdale, FL $24.49 $23.90 $23.18 $23.68 $23.81 $23.11 $22.97 $22.85
Greensboro-Winston-Salem, NC $15.44 $15.30 $15.47 $15.25 $15.23 $15.58 $15.51 $15.56
Greenville, SC $15.76 $15.61 $15.55 $15.61 $15.63 $15.54 $15.39 $15.65
Hartford-West Hartford-East Hartford, CT $19.39 $19.02 $19.18 $18.97 $18.97 $19.05 $19.13 $19.57
Honolulu, HI $28.56 $27.48 $25.08 $26.76 $25.90 $24.66 $24.74 $25.03
Houston, TX $22.96 $24.61 $25.19 $25.23 $25.10 $24.49 $25.37 $25.78
Indianapolis, IN $18.08 $18.08 $18.05 $18.09 $18.03 $18.06 $18.06 $18.06
Jacksonville, FL $17.05 $17.01 $17.02 $16.94 $17.09 $16.97 $17.02 $17.00
Kansas City, MO-KS $18.10 $17.91 $18.02 $17.94 $18.05 $18.01 $18.02 $18.01
Knoxville, TN $15.85 $15.71 $15.07 $15.33 $15.13 $14.99 $15.13 $15.03
Las Vegas-Paradise, NV $21.59 $20.63 $19.62 $20.07 $19.54 $19.71 $19.70 $19.53
Lexington-Fayette,KY $15.89 $15.61 $15.50 $15.72 $15.71 $15.58 $15.41 $15.32
Little Rock-N. Little Rock, AR $14.98 $15.28 $15.32 $15.34 $15.32 $15.43 $15.37 $15.17
Los Angeles-Long Beach-Glendale, CA $29.77 $29.87 $30.87 $30.17 $29.94 $30.36 $31.48 $31.68
Louisville, KY-IN $17.00 $16.59 $16.97 $16.83 $16.83 $17.03 $16.98 $17.04
Madison, WI $17.36 $17.16 $16.47 $17.32 $17.06 $16.42 $16.33 $16.06
Memphis, TN-MS-AR $18.82 $18.79 $18.85 $18.73 $18.86 $18.87 $18.89 $18.77
Miami-Dade, FL $27.52 $27.16 $27.30 $27.04 $27.19 $27.13 $27.18 $27.69
Milwaukee-Waukesha-West Allis, WI $18.35 $17.96 $17.56 $17.76 $17.63 $17.51 $17.51 $17.59
Minneapolis-St. Paul-Bloomington, MN-WI $24.58 $24.63 $23.71 $23.32 $23.45 $24.02 $24.07 $23.28
Nashville-Davidson-Murfreesboro, TN $19.96 $19.47 $20.23 $19.86 $20.01 $20.31 $20.30 $20.30
Asking Rents
cassidyturley.com | 11
Asking Rents2011 2012 2013 2012 4Q 2013 1Q 2013 2Q 2013 3Qr 2013 4Qp
(Quarterly Average)
New Haven-Milford, CT $20.01 $20.44 $19.52 $20.73 $20.97 $19.10 $19.06 $18.93
New Orleans-Metairie-Kenner, LA $14.96 $15.09 $15.10 $15.38 $15.03 $15.17 $15.13 $15.08
New York, NY $51.99 $57.70 $63.20 $59.44 $61.49 $62.13 $63.55 $65.61
Long Island, NY $25.69 $25.66 $25.61 $25.59 $25.67 $25.69 $25.73 $25.36
Northern New Jersey $25.06 $24.78 $24.90 $24.61 $24.52 $24.80 $25.10 $25.17
Central New Jersey $23.50 $23.95 $23.66 $23.84 $23.74 $23.92 $23.65 $23.34
Oakland-East Bay, CA $19.92 $20.32 $21.20 $20.57 $20.77 $21.05 $21.52 $21.47
Oklahoma City, OK $13.41 $13.16 $13.15 $13.11 $13.04 $13.04 $13.27 $13.24
Omaha, NE-IA $17.30 $16.82 $16.80 $16.28 $16.72 $16.84 $16.88 $16.73
Orlando, FL $19.69 $19.47 $18.96 $19.19 $19.07 $18.99 $18.94 $18.86
West Palm Beach-Boca Raton, FL $27.09 $26.85 $25.58 $26.68 $25.47 $25.59 $25.62 $25.63
Philadelphia-Camden-Wilmington, PA-NJ $23.05 $23.24 $23.14 $23.18 $23.29 $23.08 $23.04 $23.14
Phoenix-Mesa-Scottsdale, AZ $21.05 $20.27 $20.45 $20.17 $19.83 $20.39 $20.85 $20.72
Pittsburgh, PA $19.38 $19.39 $19.30 $19.51 $19.25 $19.23 $19.35 $19.40
Portland-South Portland-Biddeford, ME $14.36 $13.63 $12.66 $12.69 $12.55 $12.52 $12.58 $12.97
Portland-Vancouver-Beaverton, OR-WA $20.60 $20.59 $21.03 $20.76 $20.90 $21.10 $21.06 $21.04
Raleigh-Durham, NC $19.88 $19.60 $19.43 $19.41 $19.39 $19.38 $19.40 $19.54
Rochester, NY $13.96 $13.91 $14.14 $13.98 $13.91 $14.13 $14.20 $14.30
Sacramento-Arden-Arcade-Roseville, CA $20.49 $19.71 $19.98 $19.56 $19.92 $19.92 $20.04 $20.04
Saint Louis, MO-IL $19.22 $18.82 $18.67 $18.78 $18.62 $18.77 $18.63 $18.66
Salt Lake City, UT $17.55 $18.43 $19.45 $19.36 $19.50 $19.61 $19.34 $19.35
San Antonio, TX $19.43 $19.61 $19.64 $19.67 $19.59 $19.70 $19.70 $19.59
San Diego-Carlsbad-San Marcos, CA $28.55 $28.73 $29.97 $28.98 $29.82 $29.82 $29.64 $30.60
San Francisco, CA $35.79 $44.13 $49.16 $43.56 $45.37 $49.44 $50.64 $51.18
San Jose-Silicon Valley, CA $25.59 $27.65 $29.68 $28.40 $29.14 $29.85 $29.74 $30.00
San Mateo County, CA $36.42 $40.08 $42.06 $40.20 $40.56 $42.72 $42.12 $42.84
Seattle-Tacoma-Bellevue, WA $26.67 $26.94 $27.31 $27.45 $27.25 $27.13 $27.25 $27.61
Suburban MD $26.55 $26.42 $26.58 $26.18 $26.38 $26.82 $26.80 $26.30
Suburban VA $30.28 $31.51 $31.59 $31.46 $31.18 $31.58 $31.72 $31.89
Syracuse, NY $14.89 $15.47 $15.35 $15.34 $15.46 $15.48 $15.34 $15.11
Tampa-St.Petersburg-Clearwater, FL $19.85 $19.91 $19.61 $19.57 $19.62 $19.48 $19.61 $19.72
Tucson, AZ $19.67 $19.02 $19.00 $18.87 $18.89 $19.02 $19.00 $19.09
Tulsa, OK $15.77 $15.76 $16.00 $15.90 $15.97 $15.96 $16.03 $16.05
Ventura County, CA $23.11 $23.22 $22.82 $23.25 $22.98 $22.77 $22.63 $22.89
Washington, DC $49.41 $49.80 $49.40 $49.95 $49.87 $49.35 $49.08 $49.31
Wichita, KS $11.86 $11.78 $11.76 $11.59 $11.87 $11.81 $11.87 $11.50
Westchester, NY $25.39 $25.47 $26.07 $25.27 $25.50 $25.69 $26.54 $26.56
Methodology and data sources explained on page 14p = preliminaryr = revision
12 | Cassidy Turley
Inventory2013 4Q
Vacant Stock2013 4Q
Inventory Change (2013)
U/C (as of 2013 4Q)
National Total 5,014,144,000 745,856,000 33,347,000 57,140,000
Albuquerque, NM 13,589,000 1,937,000 120,000 289,000
Anaheim-Santa Ana, CA 59,316,000 9,313,000 21,000 380,000
Atlanta-Sandy Springs-Marietta, GA 194,167,000 36,115,000 721,000 1,175,000
Austin-Round Rock, TX 40,896,000 3,301,000 187,000 1,709,000
Baltimore, MD 75,898,000 12,622,000 781,000 1,440,000
Birmingham-Hoover, AL 18,533,000 1,715,000 0 0
Boston-Cambridge, MA 151,391,000 17,864,000 1,755,000 4,030,000
Buffalo-Niagara Falls, NY 20,954,000 2,784,000 20,000 129,000
Charleston-North Charleston, SC 8,061,000 803,000 154,000 100,000
Charlotte-Gastonia-Concord, NC-SC 44,712,000 6,528,000 0 106,000
Chattanooga, TN-GA 4,852,000 849,000 0 0
Chicago-Joliet-Naperville, IL-IN-WI 245,163,000 41,442,000 549,000 1,489,000
Cincinnati-Middletown, OH-KY-IN 32,912,000 7,669,000 0 410,000
Cleveland-Elyria-Mentor, OH 36,546,000 8,061,000 594,000 20,000
Colorado Springs, CO 15,140,000 1,077,000 65,000 17,000
Columbia, SC 10,799,000 1,687,000 0 60,000
Columbus, OH 26,531,000 4,271,000 308,000 516,000
Dallas, TX 206,868,000 40,960,000 1,623,000 3,624,000
Dayton, OH 14,209,000 3,879,000 0 0
Denver-Aurora, CO 186,999,000 21,505,000 971,000 0
Detroit-Warren-Livonia, MI 75,890,000 17,406,000 63,000 0
Fair eld, CT 53,911,000 11,914,000 0 168,000
Ft. Lauderdale, FL 27,232,000 4,203,000 32,000 319,000
Greensboro-Winston-Salem, NC 17,908,000 3,002,000 17,000 59,000
Greenville, SC 8,994,000 997,000 0 0
Hartford-West Hartford-East Hartford, CT 24,728,000 5,625,000 37,000 189,000
Honolulu, HI 25,719,000 1,392,000 0 0
Houston, TX 220,672,000 29,791,000 4,468,000 7,029,000
Indianapolis, IN 31,729,000 6,187,000 0 0
Jacksonville, FL 25,071,000 4,181,000 32,000 210,000
Kansas City, MO-KS 49,501,000 9,702,000 459,000 0
Knoxville, TN 7,124,000 1,176,000 0 33,000
Las Vegas-Paradise, NV 26,596,000 4,675,000 0 481,000
Lexington-Fayette,KY 4,521,000 883,000 0 54,000
Little Rock-N. Little Rock, AR 10,691,000 1,201,000 19,000 0
Los Angeles-Long Beach-Glendale, CA 165,667,000 29,654,000 767,000 745,000
Louisville, KY-IN 21,646,000 2,918,000 0 400,000
Madison, WI 22,426,000 2,255,000 393,000 0
Memphis, TN-MS-AR 19,740,000 3,694,000 139,000 0
Miami-Dade, FL 43,541,000 3,447,000 152,000 177,000
Milwaukee-Waukesha-West Allis, WI 27,721,000 5,655,000 0 0
Minneapolis-St. Paul-Bloomington, MN-WI 68,092,000 11,031,000 22,000 0
Nashville-Davidson-Murfreesboro, TN 33,078,000 3,209,000 64,000 899,000
New Haven-Milford, CT 12,259,000 2,036,000 19,000 515,000
New Orleans-Metairie-Kenner, LA 36,096,000 3,463,000 0 70,000
New York, NY 433,481,000 46,816,000 4,589,000 7,693,000
Long Island, NY 73,464,000 10,726,000 0 29,000
Northern New Jersey 151,299,000 23,451,000 1,047,000 974,000
Central New Jersey 104,227,000 15,217,000 152,000 423,000
Inventory
cassidyturley.com | 13
InventoryInventory2013 4Q
Vacant Stock2013 4Q
Inventory Change (2013)
U/C (as of 2013 4Q)
Oakland-East Bay, CA 109,314,000 17,709,000 64,000 0
Oklahoma City, OK 20,219,000 2,316,000 42,000 22,000
Omaha, NE-IA 19,108,000 2,963,000 794,000 546,000
Orlando, FL 33,444,000 3,472,000 374,000 201,000
West Palm Beach-Boca Raton, FL 24,247,000 2,886,000 30,000 181,000
Philadelphia-Camden-Wilmington, PA-NJ 113,628,000 14,407,000 543,000 667,000
Phoenix-Mesa-Scottsdale, AZ 96,948,000 19,971,000 208,000 661,000
Pittsburgh, PA 50,697,000 7,431,000 656,000 2,123,000
Portland-South Portland-Biddeford, ME 17,886,000 1,942,000 0 0
Portland-Vancouver-Beaverton, OR-WA 41,794,000 4,663,000 0 370,000
Raleigh-Durham, NC 36,798,000 5,041,000 301,000 618,000
Rochester, NY 15,878,000 2,592,000 142,000 145,000
Sacramento-Arden-Arcade-Roseville, CA 86,222,000 12,847,000 82,000 77,000
Saint Louis, MO-IL 48,229,000 7,090,000 0 405,000
Salt Lake City, UT 31,306,000 3,561,000 471,000 829,000
San Antonio, TX 30,477,000 4,974,000 452,000 222,000
San Diego-Carlsbad-San Marcos, CA 71,285,000 12,830,000 441,000 1,692,000
San Francisco, CA 84,322,000 6,914,000 550,000 2,987,000
San Jose-Silicon Valley, CA 201,845,000 24,625,000 1,974,000 3,111,000
San Mateo County, CA 50,844,000 6,762,000 133,000 327,000
Seattle-Tacoma-Bellevue, WA 86,399,000 9,206,000 987,000 1,134,000
Suburban MD 72,652,000 11,624,000 963,000 892,000
Suburban VA 161,633,000 28,447,000 1,913,000 1,175,000
Syracuse, NY 12,765,000 1,909,000 0 0
Tampa-St.Petersburg-Clearwater, FL 60,040,000 11,221,000 519,000 118,000
Tucson, AZ 6,334,000 1,018,000 0 65,000
Tulsa, OK 20,685,000 3,009,000 169,000 172,000
Ventura County, CA 5,495,000 1,338,000 36,000 0
Washington, DC 122,183,000 12,951,000 1,164,000 2,098,000
Wichita, KS 13,940,000 2,269,000 0 0
Westchester, NY 36,972,000 7,579,000 0 345,000
Methodology and data sources explained on page 14
Under construction and inventory change gures are derived from Cassidy Turleys proprietary sample and taken directly from CoStars database for certain markets.
14 | Cassidy Turley
MethodologyMethodologyCassidy Turleys quarterly estimates are derived from a variety of data sources, including its own proprietary sample of market activity, historical inventory data from Reis LLC, Bureau of Labor Statistics Employment data, CoStar and other third party data sources. The market statistics are calculated from a base building inventory made up of of ce properties deemed to be competitive in the local of ce markets. Generally, owner-occupied and federally-owned buildings are not included. Single-tenant buildings and privately-owned buildings in which the federal government leases space are included. Older buildings un t for occupancy or ones that require substantial renovation before tenancy are generally not included in the competitive inventory. The inventory is subject to revisions due to resampling. Vacant space is de ned as space that is available immediately or three months (90 days) after the end of the quarter. Sublet space still occupied by the tenant is not counted as available space.
The gures provided for the current quarter are preliminary, and all information contained in the report is subject to correction of errors and revisions based on additional data received.
Explanation of TermsTotal Inventory: The total amount of of ce space (in buildings greater than 10,000 square feet) that can be rented by a third party.
Total Space Available: The sums of new, relet, and sublet space that is unoccupied and being actively marketed.
Vacancy Rate: The amount of unoccupied space (new, relet, and sublet) expressed as a percentage of total inventory.
Absorption: The net change in occupied space between two points in time. (Total occupied space in the present quarter minus total occupied space from the previous quarter, quoted on a net, not gross, basis.)
Asking Rents: Gross average asking rents.
Disclaimer
This report and other research materials may
be found on our website at www.cassidyturley.
com. This is a research document of Cassidy
Turley in Washington, DC. Questions related
to information herein should be directed
to the Research Department at 202-463-
2100. Information contained herein has
been obtained from sources deemed reliable
and no representation is made as to the
accuracy thereof. Cassidy Turley is a leading
commercial real estate services provider, with
400 million square feet managed on behalf
of institutional, private and corporate clients
and $22 billion in completed transactions
for 2012.
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KeyStatistics
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More than 3,800 professionals
More than 970 brokers
2012 transactions
Gross transaction volume $22 billion
Gross capital markets volume $9.2 billion
400 million sf managed portfolio
More than 23,000 client locations served
*Through GVA Partnership
A Leader in Commercial Real Estate ServicesAt Cassidy Turley, we are market leaders, industry leaders and community leaders. Nationwide, clients recognize us for the creative sophistication of our real estate advice as well as for the discipline and accuracy of our service delivery. We are a trusted partner and advocate, supporting our clients overall business performance. In markets across the country, we are respected as a leading provider of commercial real estate services as well as for our community engagement. Our thorough understanding of local business practices and market dynamics, combined with our customer focus and service commitment, give our clients a distinct edge in commercial real estate across the globe.
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understanding of local business leaders and practices, giving Cassidy Turley and our clients an edge.
Our in-depth, local market knowledge provides a comprehensive understanding of market dynamics and enables us to effectively forecast market trends providing insight to clients and helping them make informed real estate decisions.
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World-Class Expertise Many of our associates have honed their skills in their respective markets for years
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Cassidy Turley has served clients needs outside of the United States since 1985. In order to better serve our clients in Europe and Asia-Paci c, Cassidy Turley is proud to partner with GVA, the founder and majority shareholder of GVA Worldwide, which serves key markets in over 25 countries.