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"Insights + Trends + Opportunities" is a quarterly publication by Transwestern. Each issue contains a message from Transwestern leadership, an economic outlook by Transwestern's research affiliate, Delta Associates, a tenant and landlord article on various topics, as well as a development article.
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IN THIS ISSUE...DRIVING OFFICE DEMANDEmployment Growth and Commercial Real Estate Investment Trends
INVESTOR BUYING OPPORTUNITYRising Interest Rates Expected to Trigger Sale-Leaseback, Net-Lease Sale Options
EMPOWERING LEASE DATALease Administration Boosts Tenants’ Bottom Line
THE CLASS A EVOLUTIONDevelopers Further Advance Office Buildings to Attract Savvy Tenants
DRIVING OFFICE DEMANDEmployment Growth and Commercial Real Estate Investment Trends
www.transwestern.net 4Q2013 INSIGHTS + TRENDS + OPPORTUNITIES
GovernmentUtilities
InformationOther Services
Mining/LoggingTransportationManufacturing
Wholesale TradeFinancial Services
ConstructionEducation/Health
Retail TradeLeisure/Hospitality
Professional/Business Services
= 15,000 employee change
PAYROLL EMPLOYMENT CHANGECertain sectors of the labor market impact real estate investors
Office-using sectors most likely to drive additional leasing activity
Sectors that tend to be lower-wage and drive demand for apartments
www.transwestern.net 4Q2013 INSIGHTS + TRENDS + OPPORTUNITIES
PAYROLL EMPLOYMENT CHANGE BY PERCENTAGE
Transportation1.2%
Mining/Logging5.5%
Financial Services
1.2%
Wholesale Trade1.5%
Retail Trade2.5%
Leisure /Hospitality
3.2%
Construction3.3%
Professional /Business Services
3.6%
Manufacturing0.5%
Information0.6%
Other Services0.7%
Education /Health1.6%
www.transwestern.net 4Q2013 INSIGHTS + TRENDS + OPPORTUNITIES
INVESTMENT SALES VOLUMEYear-over-year national office sales volume has risen each month since February 2013, while investment in apartment product since the spring has been fairly consistent with last year.
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www.transwestern.net 4Q2013 INSIGHTS + TRENDS + OPPORTUNITIES
REAL ESTATE LIQUIDATIONWith interest rates on the rise (below), many owner occupants are considering liquidating real estate assets to free up capital, presenting an attractive sale-leaseback investment opportunity
INVESTOR BUYING OPPORTUNITYRising Interest Rates Expected to Trigger Sale-Leaseback, Net Lease Sale Options
1.5
2.0
2.5
3.0
January 2013 May 2013 October 2013
www.transwestern.net 4Q2013 INSIGHTS + TRENDS + OPPORTUNITIES
INFORMING ON LARGE-SCALE BUSINESS STRATEGYCorporate executives have begun tapping lease administrators on internal audits, budgeting, acquisitions and a variety of corporate projects
EMPOWERING LEASE DATALease Administration Boosts Tenants’ Bottom Line
INVOICE EVALUATIONLease administrators can save clients thousands of dollars through common area maintenance operating expense reconciliation
One Transwestern client saved $500,000
www.transwestern.net 4Q2013 INSIGHTS + TRENDS + OPPORTUNITIES
THE EVOLUTIONClass A office space is changing, including the type of building, specific design characteristics and location
THE CLASS A EVOLUTIONDevelopers Further Advance Office Buildings to Attract Savvy Tenants
12.1 MSF
11.8 MSF
7.4 MSF
Millions of square feet under development or renovation
THE SUBURBAN MIGRATIONFeatures that were traditionally reserved for elegant high-rise towers in high-density downtowns are becoming standard issue on a majority of suburban office projects
Transwestern is a privately held real estate firm specializing in agency leasing, property and facilities management, tenant advisory, capital markets, development, research and sustainability. The fully integrated global enterprise leverages competencies in office, industrial, retail, multifamily and healthcare properties to add value for investors, owners and occupiers of real estate. Transwestern facilitates better decision-making for clients by combining penetrating local market intelligence and macro-market research through its affiliate, Delta Associates. Transwestern has 34 U.S. offices and assists clients through more than 180 offices in 40 countries as part of a strategic alliance with Paris-based BNP Paribas Real Estate.
© 2013 TRANSWESTERN
www.transwestern.net
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4Q 2013
