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		<title>Inland Empire Leads as Industrial Development Accelerates 29% Over Last Year</title>
		<link>https://www.commercialcafe.com/blog/us-industrial-pipeline-2020/</link>
		
		<dc:creator><![CDATA[Patrick McGregor]]></dc:creator>
		<pubDate>Tue, 10 Mar 2020 12:43:33 +0000</pubDate>
				<category><![CDATA[Commercial Real Estate News]]></category>
		<category><![CDATA[Featured]]></category>
		<category><![CDATA[Industrial]]></category>
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		<guid isPermaLink="false">https://www.commercialcafe.com/blog/?p=26750</guid>

					<description><![CDATA[<p><img width="1180" height="461" src="https://www.commercialcafe.com/blog/wp-content/uploads/sites/10/Industrial_Pipeline_2020_warehouse-interior.jpg?w=1180" class="attachment-post-thumbnail size-post-thumbnail wp-post-image" alt="Industrial Construction 2020" decoding="async" /></p>
<p><img width="1180" height="461" src="https://www.commercialcafe.com/blog/wp-content/uploads/sites/10/Industrial_Pipeline_2020_warehouse-interior.jpg?w=1180" class="attachment-small size-small wp-post-image" alt="Industrial Construction 2020" style="margin-bottom:10px;" decoding="async" fetchpriority="high" />Following the great financial crisis of 2008, the U.S. has been experiencing one of the longest economic expansions in history. Production and consumption continue to climb higher and, as a result, industrial property construction continues to increase, as well. In particular, industrial property construction added 144 million square feet across 441 properties last year, with &#8230;</p>
<p>The post <a href="https://www.commercialcafe.com/blog/us-industrial-pipeline-2020/">Inland Empire Leads as Industrial Development Accelerates 29% Over Last Year</a> appeared first on <a href="https://www.commercialcafe.com/blog">CommercialCafe</a>.</p>
]]></description>
										<content:encoded><![CDATA[<p><img width="1180" height="461" src="https://www.commercialcafe.com/blog/wp-content/uploads/sites/10/Industrial_Pipeline_2020_warehouse-interior.jpg?w=1180" class="attachment-post-thumbnail size-post-thumbnail wp-post-image" alt="Industrial Construction 2020" decoding="async" loading="lazy" /></p><img width="1180" height="461" src="https://www.commercialcafe.com/blog/wp-content/uploads/sites/10/Industrial_Pipeline_2020_warehouse-interior.jpg?w=1180" class="attachment-small size-small wp-post-image" alt="Industrial Construction 2020" style="margin-bottom:10px;" decoding="async" /><p>Following the great financial crisis of 2008, the U.S. has been experiencing one of the longest economic expansions in history. Production and consumption continue to climb higher and, as a result, industrial property construction continues to increase, as well. In particular, industrial property construction added 144 million square feet across 441 properties last year, with Dallas, Inland Empire, and Chicago on top—each of which contributed more than 14 million square feet of industrial space.</p>
<p>Using data from <a href="https://www.yardimatrix.com/" target="_blank" rel="noopener noreferrer">Yardi Matrix</a>, we looked at how much industrial space we can expect to be added in 2020. As of February 27<sup>th</sup>, when the data was extracted, industrial property completions were set to increase by 29% compared to last year’s—to 186 million square feet across 627 properties. Healthy consumer demand, historically low interest rates, and a shakeup in global supply chains are driving the need for more manufacturing and warehouse space—provided the recent pullback is short-lived.</p>
<p>Keep scrolling to check out the top markets that are adding the most space, as well as the largest individual projects in the nation for 2020.</p>
<h2><strong>Inland Empire Expected to Surge 66% Over 2019 </strong></h2>
<p>This year, <a href="https://www.commercialcafe.com/industrial/us/inland-empire-market/" target="_blank" rel="noopener noreferrer">Inland Empire</a>, Calif., will lead the nation in industrial completions with nearly 26 million square feet of space across 84 projects—roughly 400 football fields—for a whopping 66% increase over last year. In particular, Ontario-Chino, Moreno Valley, and Fontana will see the most industrial square footage added in the market—16.7 million square feet or 65% of the total.</p>
<div class="infogram-embed" data-id="b3b09d73-6e71-4ad1-a28b-8f14f31af531" data-type="interactive" data-title="2020 Top 20 U.S. Markets for Industrial Deliveries"></div>
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<p>Not far behind, the <a href="https://www.commercialcafe.com/industrial/us/dallas-fort-worth-market/" target="_blank" rel="noopener noreferrer">Dallas</a> market will add 75 properties and 23.5 million square feet, representing a 21% increase over last year when it added around 19.5 million square feet. What’s more, the developments aren’t exclusively clustered in a few areas; rather, they’re dispersed throughout the Dallas-Fort Worth region.</p>
<p>And, not to be outdone, Northern New Jersey is set to increase its industrial footprint by more than 14.5 million square feet—nearly 10 million square feet more than last year. An increase of 209%, it’s one of the largest increases in our study. Plus, the 26 properties expected to be completed will bring the average property size to more than 540,000 square feet.</p>
<div class="infogram-embed" data-id="19d86c49-a9bf-4b81-92be-cadee16535b6" data-type="interactive" data-title="2020 Industrial Pipeline - Top Markets 2020"></div>
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<p>The top five industrial markets for completions will each add at least 11 million square feet of space in 2020. Notably, Chicago is the only market in our top 10 that will add less square footage than it did in the previous year—about 16% less. The city’s industrial development added more than 14 million square feet in 2019, whereas it’s shaping up to add less than 12 million this year. Meanwhile, the largest individual developments are popping up on the coasts.</p>
<h2><strong>Largest Properties Go Coast-to-Coast: Ontario &amp; Savannah</strong></h2>
<div class="infogram-embed" data-id="185c2aa6-f2a3-49da-a638-df0068fc0361" data-type="interactive" data-title="2020 Industrial Pipeline - Top 10 Industrial Projects To Be Completed in 2020"></div>
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<p>The Colony Commerce Center in Ontario, Calif., is set to complete nearly three million square feet of industrial space this year—the largest completion of 2020. The total square footage will be spread across 11 buildings—the largest of which will be Building 9 of Phase II, which will have more than 1 million square feet upon completion. Ivanhoe Cambridge, which purchased the land in 2018 for more than <a href="https://ivanhoecambridge.com/en/news-and-media/news/2018/08/colony-commerce-center" target="_blank" rel="noopener noreferrer">$450 million</a>, contracted CapRock Partners to develop the properties. Completions are expected to culminate in September.</p>
<p>Meanwhile, in Georgia, the second- and third-largest developments to be completed in 2020 are in Rincon and Pooler, both suburbs of Savannah. The Georgia International Trade Center is scheduled to deliver four buildings between March and June for a total of 2.42 million square feet. Similarly, the Savannah Port Logistics Center, comprised of two buildings, will deliver a combined 2.39 million square feet of industrial space. Building 1 was completed in February, and Building 2 is scheduled for completion in August.</p>
<p>In contrast to last year, the Dallas-Fort Worth market saw the largest completions—with other notable entries from Inland Empire and Chicago.</p>
<div class="infogram-embed" data-id="0cf2f291-1098-4b3b-9bf1-5df9be66202f" data-type="interactive" data-title="2020 Industrial Pipeline - Top 10 Industrial Projects Completed in 2019"></div>
<p><script>!function(e,i,n,s){var t="InfogramEmbeds",d=e.getElementsByTagName("script")[0];if(window[t]&&window[t].initialized)window[t].process&&window[t].process();else if(!e.getElementById(n)){var o=e.createElement("script");o.async=1,o.id=n,o.src="https://e.infogram.com/js/dist/embed-loader-min.js",d.parentNode.insertBefore(o,d)}}(document,0,"infogram-async");</script></p>
<p>&nbsp;</p>
<p><em>Methodology:</em></p>
<p><em>Data source: Yardi Matrix, extracted February 27, 2020.</em></p>
<p><em>Industrial properties contain at least 50,000 square feet, reflecting the total square footage of the property—in the case of mixed-use assets, this includes office, retail, multifamily, and other commercial use types.</em></p>
<p><em>We included industrial properties delivered in 2019 and properties under construction that are scheduled for delivery in 2020.</em></p>
<p><em>Properties that are being delivered within the same campus highlight the total square footage for all the new buildings.</em></p>
<p><em>Market boundaries are used exclusively by the Yardi Matrix Real Estate Intelligence Source, and are traced by its real estate professionals.</em></p>
<p><em>Some projects include more than one building. The “# of Buildings” column from the tables reflect the total number of buildings included in all properties.</em></p>
<p>The post <a href="https://www.commercialcafe.com/blog/us-industrial-pipeline-2020/">Inland Empire Leads as Industrial Development Accelerates 29% Over Last Year</a> appeared first on <a href="https://www.commercialcafe.com/blog">CommercialCafe</a>.</p>
]]></content:encoded>
					
		
		
		<post-id xmlns="com-wordpress:feed-additions:1">26750</post-id>	</item>
		<item>
		<title>Decade in Review: Office Building Sales Total $873 Billion Since 2010</title>
		<link>https://www.commercialcafe.com/blog/3-6-billion-square-feet-of-office-space-for-873-billion-last-decade/</link>
		
		<dc:creator><![CDATA[Patrick McGregor]]></dc:creator>
		<pubDate>Tue, 04 Feb 2020 13:32:17 +0000</pubDate>
				<category><![CDATA[Commercial Real Estate News]]></category>
		<category><![CDATA[Deals]]></category>
		<category><![CDATA[Development]]></category>
		<category><![CDATA[Featured]]></category>
		<category><![CDATA[National]]></category>
		<category><![CDATA[Office]]></category>
		<category><![CDATA[Bay Area]]></category>
		<category><![CDATA[Buffalo]]></category>
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		<category><![CDATA[Decade]]></category>
		<category><![CDATA[Houston]]></category>
		<category><![CDATA[Los Angeles]]></category>
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		<category><![CDATA[Miami]]></category>
		<category><![CDATA[Milwaukee]]></category>
		<category><![CDATA[New York City]]></category>
		<category><![CDATA[Oklahoma City]]></category>
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		<guid isPermaLink="false">https://www.commercialcafe.com/blog/?p=26219</guid>

					<description><![CDATA[<p><img width="1180" height="461" src="https://www.commercialcafe.com/blog/wp-content/uploads/sites/10/Decade_in_Review_274616201-compressor-1.jpg?w=1180" class="attachment-post-thumbnail size-post-thumbnail wp-post-image" alt="Decade in Review Commercial Real Estate" decoding="async" loading="lazy" /></p>
<p><img width="1180" height="461" src="https://www.commercialcafe.com/blog/wp-content/uploads/sites/10/Decade_in_Review_274616201-compressor-1.jpg?w=1180" class="attachment-small size-small wp-post-image" alt="Decade in Review Commercial Real Estate" style="margin-bottom:10px;" decoding="async" loading="lazy" />A decade is a long time, and so much has occurred in our country and around the world in the last 10 years. In particular, rising real estate prices have been one of the prevailing themes throughout the 2010s. Coming off the heels of the Great Financial Crisis, the U.S. economy has trended upward for &#8230;</p>
<p>The post <a href="https://www.commercialcafe.com/blog/3-6-billion-square-feet-of-office-space-for-873-billion-last-decade/">Decade in Review: Office Building Sales Total $873 Billion Since 2010</a> appeared first on <a href="https://www.commercialcafe.com/blog">CommercialCafe</a>.</p>
]]></description>
										<content:encoded><![CDATA[<p><img width="1180" height="461" src="https://www.commercialcafe.com/blog/wp-content/uploads/sites/10/Decade_in_Review_274616201-compressor-1.jpg?w=1180" class="attachment-post-thumbnail size-post-thumbnail wp-post-image" alt="Decade in Review Commercial Real Estate" decoding="async" loading="lazy" /></p><img width="1180" height="461" src="https://www.commercialcafe.com/blog/wp-content/uploads/sites/10/Decade_in_Review_274616201-compressor-1.jpg?w=1180" class="attachment-small size-small wp-post-image" alt="Decade in Review Commercial Real Estate" style="margin-bottom:10px;" decoding="async" loading="lazy" /><p>A decade is a long time, and so much has occurred in our country and around the world in the last 10 years. In particular, rising real estate prices have been one of the prevailing themes throughout the 2010s. Coming off the heels of the Great Financial Crisis, the U.S. economy has trended upward for almost the entire decade.</p>
<p>Using data provided by <a href="https://www.yardimatrix.com/" target="_blank" rel="noopener noreferrer">Yardi Matrix</a>, we looked at the evolution of office markets across the U.S. during the last decade. While it wasn’t all up and to the right, it was largely a good decade to be in real estate—even if was preceded by a not-so-great period.</p>
<p>Summary:</p>
<ul>
<li><a href="#topdeals">Top Deals of the Decade</a></li>
<li><a href="#topfive">Top Five Active Markets by Year</a></li>
<li><a href="#ppsf">Price Per Square Foot Evolution</a></li>
<li><a href="#NatSaleVol">National Sales Volume vs. Square Footage by Year</a></li>
<li><a href="#completions">Office Completions Since 2010</a></li>
<li><a href="#T20">Top 20 Largest Properties</a></li>
</ul>
<h2 id="topdeals">In Manhattan, 10 Deals in 10 Years Approach $19 Billion</h2>
<p><a href="https://www.commercialcafe.com/office/us/ny/manhattan/" target="_blank" rel="noopener noreferrer">Manhattan</a> is the epicenter for high-end real estate in the U.S. As such, since 2010, the nation’s 10 largest commercial real estate transactions were in Manhattan. Almost $19 billion changed hands in just those 10 transactions.</p>
<div class="infogram-embed" data-id="97436876-1c94-4480-9199-dae3a528c63e" data-type="interactive" data-title="Decade - Highest Deals 1 Building"></div>
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<p>Google’s purchase of Chelsea Market at 75 Ninth Avenue in 2018 logged the highest sales price of the last decade. Jamestown sold the 1.1-million-square-foot property for $2.4 billion—or $2,180 per-square-foot. And just eight years prior, Google purchased the adjacent building, 111 Eighth Avenue, for $1.77 billion making it the sixth highest priced sale of that last decade.</p>
<p>SL Green Realty’s purchase of 11 Madison Avenue in 2015 was the second-largest transaction of the decade, coming it at nearly $2.36 billion. The historic trophy property—originally completed in 1932—has almost 2.3 million square feet of office space. The sale represented a price per square foot of $1,021.</p>
<h2>Willis &amp; John Hancock Towers Boost Chicago &amp; Boston</h2>
<p>Sales were tempered outside of Manhattan, which is a testament to its prominence. Excluding Manhattan, seven of the 10 highest sales were in Boston and Chicago, with San Francisco, Washington, D.C., and Dallas with one entry each.</p>
<div class="infogram-embed" data-id="5e9a8b73-ddfa-432d-a760-acd1123cccf5" data-type="interactive" data-title="Decade - Highest Deals 1 Bldg excl 51"></div>
<p><script>!function(e,i,n,s){var t="InfogramEmbeds",d=e.getElementsByTagName("script")[0];if(window[t]&&window[t].initialized)window[t].process&&window[t].process();else if(!e.getElementById(n)){var o=e.createElement("script");o.async=1,o.id=n,o.src="https://e.infogram.com/js/dist/embed-loader-min.js",d.parentNode.insertBefore(o,d)}}(document,0,"infogram-async");</script></p>
<p>In <a href="https://www.commercialcafe.com/office/us/il/chicago/" target="_blank" rel="noopener noreferrer">Chicago</a>, 233 South Wacker—also known as Willis Tower and arguably the most iconic of the city’s buildings—was picked up by The Blackstone Group in 2015 for $1.3 billion.</p>
<p>In <a href="https://www.commercialcafe.com/office/us/ma/boston/" target="_blank" rel="noopener noreferrer">Boston</a>, Normandy Real Estate Partners sold the John Hancock Tower at 200 Clarendon Street to Boston Properties in 2010 for $930 million. This transaction marked the second-highest sale price outside of New York City in the last decade.</p>
<h2 id="topfive">Manhattan #1 in National Sales Volume</h2>
<p>Manhattan not only logged the largest sales of the decade, but it also had the largest number of transactions for every individual year of the decade, as well.</p>
<p>In 2010, more than 19 million square feet of office space traded in Manhattan for just over $6.4 billion. This represented 12% of all square footage traded in the country that year and 18% of the total transaction volume.</p>
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<p>Volumes peaked in 2015, when more than $23 billion was spent on 31.25 million square feet of office space, which represented 19% of the nation&#8217;s transaction volume that year. Skyrocketing valuations caused by large amounts of deployable capital led to a record-low compression of cap rates, and Manhattan ended the decade off it’s 2015 highs with 11.2 million square feet trading for $9.72 billion—10% of the national transaction volume.</p>
<p>Washington, D.C. was the only market other than Manhattan that sustained a top-five position throughout the decade—reaching as high as the second position with roughly $5.7 billion in sales volume in 2010. Similarly, the Bay Area entered the top five in 2011, but has fluctuated quite a bit. Its best year was 2015, when it reached the second position with more than $8.4 billion in sales volume.</p>
<h2 id="ppsf">DC &amp; Chicago PPSF Decline as Other Markets Grow</h2>
<div class="infogram-embed" data-id="d28f746e-9e0d-4f57-a5bf-59f15e577bc1" data-type="interactive" data-title="Decade - Price Top5 V2"></div>
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<p>The national price per square foot started the decade off at $211 and ended at $291. However, this metric can vary widely from market to market. Once again, Manhattan was in a league of its own, exploding 164% since the start of the decade to $1,054 per square foot—more than double that of Los Angeles’ $432 per square foot.</p>
<p>While overall prices rose throughout the country, not every market followed suit. For instance, <a href="https://www.commercialcafe.com/office/us/il/chicago/" target="_blank" rel="noopener noreferrer">Chicago</a> fluctuated and ended the decade at $188 per square foot, below the $234 where it began, the largest decline of the top five cities. <a href="https://www.commercialcafe.com/office/us/dc/washington/" target="_blank" rel="noopener noreferrer">Washington, D.C.</a> had the second-largest decline of the top markets. It ended the decade at $321 per square foot—roughly 11% below its 2010 price of $361 per square foot.</p>
<h2 id="NatSaleVol">After Peaking in 2015, Volume Settles as Prices Continue to Rise</h2>
<div class="infogram-embed" data-id="c31a8732-0061-44f4-a37c-e3e161522e05" data-type="interactive" data-title="Decade - Sales Volume &amp;amp; Sqft"></div>
<p><script>!function(e,i,n,s){var t="InfogramEmbeds",d=e.getElementsByTagName("script")[0];if(window[t]&&window[t].initialized)window[t].process&&window[t].process();else if(!e.getElementById(n)){var o=e.createElement("script");o.async=1,o.id=n,o.src="https://e.infogram.com/js/dist/embed-loader-min.js",d.parentNode.insertBefore(o,d)}}(document,0,"infogram-async");</script></p>
<p>Manhattan’s transaction volume trend mirrors the nation overall. The transaction volume for the entire nation peaked in 2015 at more than $123.3 billion—an increase of 253% from 2010—with more than 500 million square feet of office space traded that year. However, since then, sales volume has retreated from those highs to settle around $100 billion for each of the last few years.</p>
<p>Nonetheless, valuations have continued to increase and will likely extend into the new decade. It&#8217;s also worth noting that the divergence in transaction volume to total traded square footage reached its largest gap last year, when the national average price per square foot climbed to $291. As an example the same amount of money in 2019 purchased roughly 36 million square feet less than it did in 2018.</p>
<h2 id="completions">One World Trade Center Leads Resurgence of Urban Office Development</h2>
<div class="infogram-embed" data-id="4a3e818b-3fdb-4bd0-816c-070b19728f8c" data-type="interactive" data-title="Decade - Completions V2"></div>
<p><script>!function(e,i,n,s){var t="InfogramEmbeds",d=e.getElementsByTagName("script")[0];if(window[t]&&window[t].initialized)window[t].process&&window[t].process();else if(!e.getElementById(n)){var o=e.createElement("script");o.async=1,o.id=n,o.src="https://e.infogram.com/js/dist/embed-loader-min.js",d.parentNode.insertBefore(o,d)}}(document,0,"infogram-async");</script></p>
<p>A <a href="https://www.commercialcafe.com/blog/top-u-s-cities-add-682-million-square-feet-of-office-space-in-10-years/" target="_blank" rel="noopener noreferrer">previous study</a> revealed that office construction favored either the suburbs or the city, but rarely both. On a national scale, much of the development last decade was in the suburbs. But, last year, office construction in urban cores outpaced that of suburbs. Indeed, while development overall has trended upward since 2011, urban office construction has consistently trended upward and is likely to continue.</p>
<div class="infogram-embed" data-id="3a114e44-5be0-4386-aa11-6227edcc8d1f" data-type="interactive" data-title="Decade - Office Completions Chart"></div>
<p><script>!function(e,i,n,s){var t="InfogramEmbeds",d=e.getElementsByTagName("script")[0];if(window[t]&&window[t].initialized)window[t].process&&window[t].process();else if(!e.getElementById(n)){var o=e.createElement("script");o.async=1,o.id=n,o.src="https://e.infogram.com/js/dist/embed-loader-min.js",d.parentNode.insertBefore(o,d)}}(document,0,"infogram-async");</script></p>
<p>The graph above illustrates the prominence of the urban office construction resurgence. Note that the number of completions stays roughly in the 600s for most of the decade, but the amount of square footage added continues to rise. Likewise, since 2015, the number of buildings completed has decreased every year, but the square footage of delivered office space has continued to rise—meaning larger buildings.</p>
<h2 id="T20"></h2>
<p>Obviously, larger buildings tend to be in dense cities and, yet again, New York City dominates with eight of the decades top 20 largest developments in the U.S.</p>
<div class="infogram-embed" data-id="38bb462c-9bf8-48fb-9fe7-b5ace5fbd084" data-type="interactive" data-title="Decade - Top 20 Office Building Completions"></div>
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<p>At the top of the list, One World Trade Center was the largest office property built in the nation in the last decade. At 94 floors, the 3.1-million-square-foot tower is not only the tallest building in the U.S., but in the entire Western Hemisphere as well. It was completed in 2014—13 years after the fall of the twin towers.</p>
<p>Other notable entrants were 3 and 4 World Trade Center at 2.8 and 2.5 million square feet, respectively, as well as 30 and 10 Hudson Yards which have more than 4.5 million square feet between them.</p>
<p>On the other coast, the second-largest property built in the last decade was completed in <a href="https://www.commercialcafe.com/office/us/ca/santa-clara-county/cupertino/" target="_blank" rel="noopener noreferrer">Cupertino</a>, CA—the 2.88-million-square-foot Apple Park. Part of the 150-acre property formerly housed the computer systems division of Hewlett-Packard, and it was also surrounded by apricot orchards. The Apple Park property is roughly 80% landscaping and was officially completed in June 2018.</p>
<p>The largest adaptive reuse in the nation was completed last year in Chicago. The 601W Companies purchased the Old Post Office building in 2016 and spent three years and $800 million updating the 2.8 million-square-foot landmark property on the river in the Loop.</p>
<p>Rounding out the top 10 is <a href="https://www.commercialcafe.com/office/us/ok/oklahoma-city/" target="_blank" rel="noopener noreferrer">Oklahoma City</a> with the addition of the Devon Energy Center in 2011. The 1.61-million-square-foot tower stretches 52 floors and is the most iconic building in the city’s skyline.</p>
<p>&nbsp;</p>
<h4>Methodology:</h4>
<p><em>We considered transactions of completed properties, from 2010 to 2019; Data extraction on Jan 21.</em></p>
<p><em>Minimum amount per transaction: $5,000,000.</em></p>
<p><em>Square footage parameters: at least 25,000 square feet.</em></p>
<p><em>Sales volume includes ownership stake, controlling interest, and remaining interest deals.</em></p>
<p><em>Portfolio deals are counted as single transactions.</em></p>
<p><em>Only properties featuring over 50% office space were considered.</em></p>
<p><em>&#8220;Ownership stake,&#8221; &#8220;ground lease,&#8221; &#8220;controlling interest,&#8221; &#8220;portfolio&#8221; and &#8220;undisclosed&#8221; deals were excluded from the average price per square foot calculations.</em></p>
<p><em>Distressed sales were excluded.</em></p>
<p><em>Portfolio transactions were excluded from top deals.</em></p>
<p>The post <a href="https://www.commercialcafe.com/blog/3-6-billion-square-feet-of-office-space-for-873-billion-last-decade/">Decade in Review: Office Building Sales Total $873 Billion Since 2010</a> appeared first on <a href="https://www.commercialcafe.com/blog">CommercialCafe</a>.</p>
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		<post-id xmlns="com-wordpress:feed-additions:1">26219</post-id>	</item>
		<item>
		<title>Top 50 US Office Sales of 2019: Google’s Real Estate Empire Keeps Growing</title>
		<link>https://www.commercialcafe.com/blog/top-50-us-office-sales-2019/</link>
		
		<dc:creator><![CDATA[Diana Sabau]]></dc:creator>
		<pubDate>Tue, 28 Jan 2020 13:01:29 +0000</pubDate>
				<category><![CDATA[Commercial Real Estate News]]></category>
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		<guid isPermaLink="false">https://www.commercialcafe.com/blog/?p=26150</guid>

					<description><![CDATA[<p><img width="1180" height="461" src="https://www.commercialcafe.com/blog/wp-content/uploads/sites/10/Texas-skyscrapers.jpg?w=1180" class="attachment-post-thumbnail size-post-thumbnail wp-post-image" alt="Office space Texas" decoding="async" loading="lazy" /></p>
<p><img width="1180" height="461" src="https://www.commercialcafe.com/blog/wp-content/uploads/sites/10/Texas-skyscrapers.jpg?w=1180" class="attachment-small size-small wp-post-image" alt="Office space Texas" style="margin-bottom:10px;" decoding="async" loading="lazy" />We analyzed the top 50 U.S. office deals of 2019, and the results show an increased investor appetite for trophy assets outside of New York City. In particular, it was Class A office space in California—particularly in the Bay Area—and Washington’s Seattle and Bellevue areas that attracted most of the attention in the previous 12 &#8230;</p>
<p>The post <a href="https://www.commercialcafe.com/blog/top-50-us-office-sales-2019/">Top 50 US Office Sales of 2019: Google’s Real Estate Empire Keeps Growing</a> appeared first on <a href="https://www.commercialcafe.com/blog">CommercialCafe</a>.</p>
]]></description>
										<content:encoded><![CDATA[<p><img width="1180" height="461" src="https://www.commercialcafe.com/blog/wp-content/uploads/sites/10/Texas-skyscrapers.jpg?w=1180" class="attachment-post-thumbnail size-post-thumbnail wp-post-image" alt="Office space Texas" decoding="async" loading="lazy" /></p><img width="1180" height="461" src="https://www.commercialcafe.com/blog/wp-content/uploads/sites/10/Texas-skyscrapers.jpg?w=1180" class="attachment-small size-small wp-post-image" alt="Office space Texas" style="margin-bottom:10px;" decoding="async" loading="lazy" /><p>We analyzed the top 50 U.S. office deals of 2019, and the results show an increased investor appetite for trophy assets outside of New York City. In particular, it was Class A office space in California—particularly in the Bay Area—and Washington’s Seattle and Bellevue areas that attracted most of the attention in the previous 12 months. Another important takeaway is that the number and individual value of <a href="https://www.commercialcafe.com/office/us/ny/new-york-city/" target="_blank" rel="noopener">New York City office space</a> transactions have decreased significantly compared to 2018.</p>
<p>Using data from Yardi Matrix, we reviewed all office buildings of at least 50,000 square feet and mixed-use properties that have more than 50% office space (for further details, read our <a href="#methodology">methodology section</a>). In addition to our usual top 50 office sales list, we also zoomed in on the regional level, reviewing the top 10 major deals in the Northeast, Midwest, South, and West.</p>
<p>Check out the full list in the table below, and read on for more on the 2019 top 50 U.S. office sales and a roundup of the regional top 10 lists.</p>
<div class="infogram-embed" data-id="448ea3ab-5950-4945-bc4e-46206703831f" data-type="interactive" data-title="#TODO Top 50 Deals Table"></div>
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<h2>NYC Sales Volume in Top 50 Office Deals Drops $4.6 Billion Y-o-Y</h2>
<p>New York City dominated the <a href="https://www.commercialcafe.com/blog/top-50-us-office-deals-of-2018/" target="_blank" rel="noopener noreferrer">top 50 U.S. office deals in 2018</a> with 19 entries; that year, the city also loomed large within the top 10, making up more than half of the top-tier transaction list. However, in 2019, the number of New York City office transactions within the top 50 decreased to just 11 entries.</p>
<p>The sales volume of top-50 office deals in New York City also dropped by 41% year-over-year—from roughly $11 billion in 2018 to $6.5 billion last year. The second sale of the Coca-Cola Company Building — $937 million paid by <strong>SHVO </strong>— was the priciest office transaction in New York City. But, for once, it wasn’t enough to take the number one spot; that honor went to Google’s $1 billion acquisition of Yahoo’s former headquarters in <a href="https://www.commercialcafe.com/office/us/ca/santa-clara-county/sunnyvale/" target="_blank" rel="noopener">Sunnyvale, Calif</a>. Interestingly, the tech giant spent the same amount in 2018 on the Britannia Shoreline Technology Park in Mountain View, Calif.</p>
<div class="infogram-embed" data-id="e007262f-0842-48e0-8e15-68b161e99544" data-type="interactive" data-title="Top 50 Deals Sales V and Sqft"></div>
<p><script>!function(e,i,n,s){var t="InfogramEmbeds",d=e.getElementsByTagName("script")[0];if(window[t]&&window[t].initialized)window[t].process&&window[t].process();else if(!e.getElementById(n)){var o=e.createElement("script");o.async=1,o.id=n,o.src="https://e.infogram.com/js/dist/embed-loader-min.js",d.parentNode.insertBefore(o,d)}}(document,0,"infogram-async");</script></p>
<div id="attachment_26158" style="width: 650px" class="wp-caption aligncenter"><img loading="lazy" decoding="async" aria-describedby="caption-attachment-26158" class="wp-image-26158 size-full" src="https://www.commercialcafe.com/blog/wp-content/uploads/sites/10/Bank-of-America-Tower-Houston.jpg" alt="800 Capitol Street Houston" width="640" height="800" /><p id="caption-attachment-26158" class="wp-caption-text">Bank of America Tower at 800 Capitol Street, Houston</p></div>
<p>Outside of New York City, investors were especially keen on office space in San Francisco and in Seattle. Seven transactions in the top 50 — totaling 3.7 million square feet of office space — were located in San Francisco; the largest of these was the Levi’s portfolio, which changed hands for $826 million in Q3. Meanwhile, roughly 3.3 million square feet of Seattle office space was traded across five sales that made the top 50 list.</p>
<p>Additionally, two Houston office deals made the list. The first, which landed in twelfth place, was a two-building portfolio — consisting of JPMorgan Chase Tower and JPMorgan Chase Center; in June, <strong>Cerberus Capital Management</strong> paid $627 million to New York-based <strong>Hariri Interests</strong> for the properties.</p>
<p>The second Houston entry is the sale of the <a href="https://www.commercialcafe.com/commercial-property/us/tx/houston/capitol-tower/" target="_blank" rel="noopener noreferrer">Bank of America Tower</a> on 800 Capitol Street, which closed at the end of the year for nearly $415 million — landing in 32<sup>nd</sup> place. Swedish construction and development company <strong>Skanska</strong> transferred ownership of the 775,000-square-foot, class A office to <strong>Beacon Capital Partners</strong>.</p>
<p>While neither Austin nor Dallas office deals made the top 50, the <a href="https://www.commercialcafe.com/commercial-property/us/tx/irving/pioneer-natural-resources-headquarters-2/" target="_blank" rel="noopener noreferrer">Pioneer Natural Resources Headquarters</a> in Irving came in 16<sup>th</sup>. It was acquired by <strong>PRP Real Estate Investment Management</strong> for $584 million — at 1,125,000 square feet of prime <a href="https://www.commercialcafe.com/office/us/tx/irving/las-colinas/" target="_blank" rel="noopener">Las Colinas office space</a>, the sale came out to roughly $519 per square foot.</p>
<h2>Northeast Closeup: NYC’s Top Office Sale Below the $1 Billion Mark for First Time Since 2016</h2>
<p>Sales of offices in central business district (CBD) locations have the largest share within the Northeast top 10, with roughly 6.2 million square feet contributing 88% of the total square footage. Two buildings totaling 816,000 square feet were urban-situated properties. The suburban Alewife Research Center, totaling 220,000 square feet of <a href="https://www.commercialcafe.com/office/us/ma/cambridge/" target="_blank" rel="noopener">Cambridge, Mass., office space</a>, traded in 2019 for $332.5 million, but that sale did not make the regional shortlist.</p>
<div class="infogram-embed" data-id="b17d3cfa-cd78-4003-8328-0df7b7f61cd6" data-type="interactive" data-title="Top 50 Deals Location Class NE"></div>
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<p>The list opens with three transactions for <a href="https://www.commercialcafe.com/office/us/ny/manhattan/central-midtown/" target="_blank" rel="noopener">Central Midtown office</a> assets: The two consecutive sales of the <a href="https://www.commercialcafe.com/commercial-property/us/ny/new-york/the-coca-cola-company-building/" target="_blank" rel="noopener noreferrer">Coca-Cola Building</a> in September take up the first two spots at $937 million and $909 million, respectively. The sale of the 840,000-square-foot <a href="https://www.commercialcafe.com/commercial-property/us/ny/new-york/330-madison-avenue/" target="_blank" rel="noopener noreferrer">330 Madison Avenue</a>—completed in December—is in at number three, with a price tag of $875 million.</p>
<div class="infogram-embed" data-id="e32bd87d-2344-47fb-afeb-b5978dd6f246" data-type="interactive" data-title="#TODO Top 10 Deals Table NE"></div>
<p><script>!function(e,i,n,s){var t="InfogramEmbeds",d=e.getElementsByTagName("script")[0];if(window[t]&&window[t].initialized)window[t].process&&window[t].process();else if(!e.getElementById(n)){var o=e.createElement("script");o.async=1,o.id=n,o.src="https://e.infogram.com/js/dist/embed-loader-min.js",d.parentNode.insertBefore(o,d)}}(document,0,"infogram-async");</script></p>
<p>Meanwhile, <a href="https://www.commercialcafe.com/commercial-property/us/ma/boston/100-summer-street/" target="_blank" rel="noopener noreferrer">100 Summer Street</a> in Boston is the first entry outside of New York City on the regional list. <strong>Rockpoint Group</strong> paid $806 million, roughly $779 per square foot, for the 32-story <a href="https://www.commercialcafe.com/office/us/ma/boston/downtown-financial-district/" target="_blank" rel="noopener noreferrer">Downtown Boston office space</a> in October. For its former owner — <strong>EQ Office</strong>, a real estate company owned and managed by Blackstone — the sale of the 1-million-square-foot building marked the closing of the <a href="https://www.wsj.com/articles/blackstone-sells-last-of-record-office-purchase-books-a-7b-profit-11570541754" target="_blank" rel="nofollow noopener noreferrer">largest real estate transaction in history</a>. In 2007, Blackstone acquired Equity Office Properties for $39 billion. It subsequently weathered the storms of the financial crisis, ending its investment journey with $7 billion in profits.</p>
<h2>Midwest Closeup: $412 Million Sale of 500 West Monroe in Chicago Takes #1 Spot in Regional Top 10</h2>
<p>Five out of the 10 sales that made the Midwest regional list of major office deals — roughly 3.8 million square feet — were located in the CBD area. Two of the top 10 office sales in the region were in suburban locations, totaling nearly 1.3 million square feet.</p>
<div class="infogram-embed" data-id="606a6f12-d0ba-4c1d-ab66-b798fdda9674" data-type="interactive" data-title="Top 50 Deals Location Class MW"></div>
<p><script>!function(e,i,n,s){var t="InfogramEmbeds",d=e.getElementsByTagName("script")[0];if(window[t]&&window[t].initialized)window[t].process&&window[t].process();else if(!e.getElementById(n)){var o=e.createElement("script");o.async=1,o.id=n,o.src="https://e.infogram.com/js/dist/embed-loader-min.js",d.parentNode.insertBefore(o,d)}}(document,0,"infogram-async");</script></p>
<div id="attachment_26162" style="width: 650px" class="wp-caption aligncenter"><img loading="lazy" decoding="async" aria-describedby="caption-attachment-26162" class="wp-image-26162 size-full" src="https://www.commercialcafe.com/blog/wp-content/uploads/sites/10/500-West-Monroe-Chicago.jpg" alt="Chicago office space" width="640" height="800" /><p id="caption-attachment-26162" class="wp-caption-text">500 West Monroe Street, Chicago</p></div>
<p>In October, <strong>Spear Street Capital</strong> forked over $412 million for <a href="https://www.commercialcafe.com/commercial-property/us/il/chicago/500-west-monroe-street/" target="_blank" rel="noopener noreferrer">500 West Monroe Street</a> in Chicago, making it the largest deal both in its market and throughout the greater Midwest. In 2011, <strong>Piedmont Office Realty Trust</strong> held the note for a $140 million mortgage, which it eventually <a href="https://www.chicagobusiness.com/commercial-real-estate/west-loop-office-tower-owner-seeking-490-million" target="_blank" rel="nofollow noopener">foreclosed</a> for ownership of the <a href="https://www.commercialcafe.com/office/us/il/chicago/west-loop/" target="_blank" rel="noopener">West Loop office</a> property. Prior to that, New York-based <strong>Broadway Partners</strong> had acquired the 966,645-square-foot tower in 2007 from Shorenstein for $337 million.</p>
<p>After a slow 2019, investors hope that the 46-story building’s turnaround might <a href="https://therealdeal.com/chicago/2019/05/15/piedmont-looking-for-major-payout-with-west-loop-office-tower-listing/" target="_blank" rel="nofollow noopener noreferrer">signal an uptick in downtown office sale activity</a>. While there were three additional major deals in the Chicago office market last year, all of them fell below the $300 million mark.</p>
<div class="infogram-embed" data-id="0fa1598f-9f18-4907-a8ec-5aba1d832a17" data-type="interactive" data-title="#TODO Top 10 Deals Table MW"></div>
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<p>Meanwhile, the <a href="https://www.commercialcafe.com/commercial-property/us/mn/minneapolis/wells-fargo-center/" target="_blank" rel="noopener noreferrer">Wells Fargo Center</a> in Minneapolis sold for $313.6 million in April — incorporating a total of nearly 1,2 million square feet of prime <a href="https://www.commercialcafe.com/office/us/mn/minneapolis/downtown-minneapolis/" target="_blank" rel="noopener">Downtown Minneapolis office space</a>, the deal came out to roughly $262.20 per square foot. It was the second-largest office deal in the Midwest, and the second-largest transaction ever in the Twin Cities market — a mere $6.4 million below the sale of the City Center building, which closed in 2018.</p>
<p>The new owner of the Wells Fargo Center at 90 South 7<sup>th</sup> Street is <strong>Starwood Property Trust</strong>, a company best known for creating Starwood Hotels &amp; Resorts in the mid-1990s. The <a href="https://www.commercialcafe.com/office/us/mn/minneapolis/" target="_blank" rel="noopener">Minneapolis office</a> tower was its second major office acquisition in town, as it previously also snagged <a href="https://www.bizjournals.com/twincities/news/2019/04/01/wells-fargo-center-sells-for-reported-315m.html" target="_blank" rel="nofollow noopener noreferrer">The Colonnade for $100 million</a> in 2017.</p>
<h2>West Closeup: 4.6 Million Square Feet of Urban Offices Changed Hands in Top 10 Deals in the West</h2>
<p>Deals for offices located in urban areas have a strong presence in the Western region’s top 10; specifically, six out of 10 entries were in this location class, for a total of 4.6 million square feet. Two properties, totaling roughly 1.9 million square feet of office space, were in CBDs. There were also only two suburban office sales within the regional top 10, but one of these two transactions — the former Yahoo headquarters in Sunnyvale, Calif. — had the highest price tag in the West.</p>
<div class="infogram-embed" data-id="bea73f3a-2651-4212-92c8-4d40c13d6ee0" data-type="interactive" data-title="Top 50 Deals Location Class W"></div>
<p><script>!function(e,i,n,s){var t="InfogramEmbeds",d=e.getElementsByTagName("script")[0];if(window[t]&&window[t].initialized)window[t].process&&window[t].process();else if(!e.getElementById(n)){var o=e.createElement("script");o.async=1,o.id=n,o.src="https://e.infogram.com/js/dist/embed-loader-min.js",d.parentNode.insertBefore(o,d)}}(document,0,"infogram-async");</script></p>
<p>In July, <strong>Google</strong> closed the deal on a $1 billion office portfolio, buying up its one-time search-engine rival’s headquarters and adding 617,000 square feet to its already-massive footprint in the Bay Area. The company’s partnership with Lendlease — a major property and infrastructure group — and its investment in real estate within San Jose, Sunnyvale and <a href="https://www.commercialcafe.com/office/us/ca/santa-clara-county/mountain-view/" target="_blank" rel="noopener">Mountain View</a>, is part of its greater vision for the region.</p>
<div class="infogram-embed" data-id="48d12e6f-dff7-4a99-865e-a3c48ed90bc5" data-type="interactive" data-title="#TODO Top 10 Deals Table W"></div>
<p><script>!function(e,i,n,s){var t="InfogramEmbeds",d=e.getElementsByTagName("script")[0];if(window[t]&&window[t].initialized)window[t].process&&window[t].process();else if(!e.getElementById(n)){var o=e.createElement("script");o.async=1,o.id=n,o.src="https://e.infogram.com/js/dist/embed-loader-min.js",d.parentNode.insertBefore(o,d)}}(document,0,"infogram-async");</script></p>
<p>Google aims to encourage the development of <a href="https://www.mercurynews.com/2019/07/24/boom-google-pays-1-billion-for-sunnyvale-sites-it-bought-from-verizon/" target="_blank" rel="nofollow noopener noreferrer">several new live/work/play neighborhoods</a>. The Mountain View-based company also plans to rezone for residential development <a href="https://www.mv-voice.com/news/2019/06/18/google-sets-1-billion-for-rapid-housing-growth-in-bay-area" target="_blank" rel="nofollow noopener">$750 million worth of land</a> that is currently zoned for office space to address woes about housing affordability and availability in the area.</p>
<h2>South Closeup: Texas Dominates Regional Top 10 With 3.8 Million Square Feet in Office Sales</h2>
<p>Three of the top 10 transactions in the South were suburban offices, encompassing roughly 3.16 million square feet. Nearly half of the sales on the South regional list were for office properties in CBDs.</p>
<div class="infogram-embed" data-id="94fe5754-6cd1-4857-a04f-67e79c03d33c" data-type="interactive" data-title="Top 50 Deals Location Class S"></div>
<p><script>!function(e,i,n,s){var t="InfogramEmbeds",d=e.getElementsByTagName("script")[0];if(window[t]&&window[t].initialized)window[t].process&&window[t].process();else if(!e.getElementById(n)){var o=e.createElement("script");o.async=1,o.id=n,o.src="https://e.infogram.com/js/dist/embed-loader-min.js",d.parentNode.insertBefore(o,d)}}(document,0,"infogram-async");</script></p>
<p>Texas dominated the South’s top 10 major office deals, accounting for half of total entries. Roughly 4.89 million square feet of office space in Houston, <a href="https://www.commercialcafe.com/office/us/tx/irving/" target="_blank" rel="noopener">Irving</a>, Dallas, and Austin changed hands last year; most of the traded properties were located in CBDs. In fact, Texas contributed most of the overall CBD office square footage in the list — 3.76 million out of a 4.86 million regional total.</p>
<div class="infogram-embed" data-id="946d9a0b-e859-4169-a13e-8667450c921e" data-type="interactive" data-title="#TODO Top 10 Deals Table S"></div>
<p><script>!function(e,i,n,s){var t="InfogramEmbeds",d=e.getElementsByTagName("script")[0];if(window[t]&&window[t].initialized)window[t].process&&window[t].process();else if(!e.getElementById(n)){var o=e.createElement("script");o.async=1,o.id=n,o.src="https://e.infogram.com/js/dist/embed-loader-min.js",d.parentNode.insertBefore(o,d)}}(document,0,"infogram-async");</script></p>
<div id="attachment_26165" style="width: 650px" class="wp-caption aligncenter"><a href="https://www.commercialcafe.com/blog/wp-content/uploads/sites/10/JPMorgan-Chase-Tower-Houston.jpg" rel='prettyPhoto' data-rel="lightbox-image-0" data-rl_title="" data-rl_caption="" title=""><img loading="lazy" decoding="async" aria-describedby="caption-attachment-26165" class="wp-image-26165 size-full" src="https://www.commercialcafe.com/blog/wp-content/uploads/sites/10/JPMorgan-Chase-Tower-Houston.jpg" alt="Houston office space" width="640" height="800" /></a><p id="caption-attachment-26165" class="wp-caption-text">600 Travis Street, Houston</p></div>
<p>Cerberus Capital Management, which took ownership of JPMorgan Chase Tower and Center in June, <a href="https://www.bizjournals.com/houston/news/2019/10/28/its-official-hines-pe-firm-buy-houstons-tallest.html" target="_blank" rel="nofollow noopener noreferrer">announced it would renovate</a> part of the two-building complex. While the 404,000-square-foot office tower at 601 Travis Street had been updated in 2011, the 75-story property at 600 Travis Street — the tallest commercial building in Texas — is ripe for redevelopment. Improvements will include adding some much sought-after <a href="https://www.commercialcafe.com/coworking-space/us/tx/houston/" target="_blank" rel="noopener">Houston coworking space</a>, as well as updates to the lobby, and a new conference center.</p>
<p>The Bank of America Tower in Charlotte and 5600 Fishers Lane in <a href="https://www.commercialcafe.com/office/us/md/rockville/" target="_blank" rel="noopener">Rockville, Md.</a>, close off the region’s top five, both trading for $436 million. The North Carolina tower’s average price per square foot is $502, while the Rockville building’s average is roughly $327.</p>
<h2>Google Fetches Sunnyvale Campus in #1 Office Sale of 2019; Hines Sheds More Than $2.5 Billion Worth of Assets</h2>
<p>Last year’s top five spenders within the top 50 included Google — which took the lead with a whopping $1.8 billion in office acquisitions — followed by billionaire Amancio Ortega’s <strong>Ponte Gadea</strong>, with total investments of $1.38 billion. Rockpoint Group — with two transactions worth $1.37 billion — <strong>KKR</strong> and Starwood Properties closed out the ranking’s top tier.</p>
<p>Miami-based Ponte Gadea’s focus last year in the U.S. was the Seattle office market, where it spent $740 million on the 780,000-square-foot Amazon Houdini portfolio — the ninth-largest deal nationally and the highest-ranking sale within the local market — and $415 million to buy the Arbor Blocks portfolio from <strong>Vulcan Real Estate</strong>. <a href="https://www.bloomberg.com/billionaires/profiles/amancio-ortega-gaona/" target="_blank" rel="nofollow noopener noreferrer">Ortega’s real estate empire also includes</a> properties in New York, San Francisco, and London.</p>
<p>Hines, EQ Office, and JPMorgan Asset Management were the top sellers in 2019 on our list, each shedding billions in assets throughout the U.S.</p>
<p>In the closing days of 2019, <strong>Hines</strong> finalized the sale of The Summit in <a href="https://www.commercialcafe.com/office/us/wa/bellevue/" target="_blank" rel="noopener">Bellevue</a> — a three-building complex that encompasses the completed <a href="https://www.commercialcafe.com/commercial-property/us/wa/bellevue/the-summit-i/" target="_blank" rel="noopener noreferrer">Summit I</a> and <a href="https://www.commercialcafe.com/commercial-property/us/wa/bellevue/the-summit-ii/" target="_blank" rel="noopener">Summit II</a> buildings and a third edifice still under construction that is pre-leased by Amazon. The $756 million sale was Washington state’s largest office deal of the year.</p>
<div id="attachment_26156" style="width: 650px" class="wp-caption aligncenter"><img loading="lazy" decoding="async" aria-describedby="caption-attachment-26156" class="wp-image-26156 size-full" src="https://www.commercialcafe.com/blog/wp-content/uploads/sites/10/Summit-II.jpg" alt="Bellevue office space" width="640" height="800" /><p id="caption-attachment-26156" class="wp-caption-text">The Summit II at 10885 NE 4th Street, Bellevue</p></div>
<p>Hines raked in a further $525 million for the La Jolla Towers in San Diego, which it previously owned through a joint venture with JPMorgan Asset Management. It also sold Minneapolis’ Wells Fargo Center — a property it had co-owned alongside Blackstone — for $313.6 million. Other sales include 800 Fifth Avenue in Seattle, which fetched $540 million; the 550 Terry Francois building in San Francisco, which sold for $342.5 million; and an <a href="https://www.bizjournals.com/kansascity/news/2019/02/19/southlake-technology-park-office-buildings-sold.html" target="_blank" rel="nofollow noopener noreferrer">$88 million Southlake office portfolio</a> in Lenexa, Kan., which didn’t make the top 50.</p>
<p>JPMorgan’s $1.3 billion sales consisted of the 1-million-square-foot <a href="https://www.commercialcafe.com/office/us/ny/manhattan/" target="_blank" rel="noopener noreferrer">Manhattan office space</a> at 195 Broadway — well-placed <a href="https://www.commercialcafe.com/office/us/ny/manhattan/financial-district/" target="_blank" rel="nofollow noopener">Financial District office space</a> for which <strong>L&amp;L Holding</strong> paid $800 million in September — and the two-building Terminus portfolio in Atlanta, which was acquired by <strong>Cousins Properties</strong> for $503 million.</p>
<h2 id="methodology">Methodology</h2>
<p><em>We used Yardi Matrix data to analyze all <strong>transactions recorded through January 21, 2020.</strong> Only office buildings equal to or in excess of 50,000 square feet were included. In the case of mixed-use assets, only properties featuring more than 50% office space were included in the analysis. We counted portfolio deals as single transactions and only analyzed portfolio sales of buildings that were part of the same campus or property, and that shared the same transaction terms. Distressed sales were excluded altogether. Regional lists were compiled according to the U.S. Census map of regions and divisions of the United States. </em></p>
<p>Want to see what other top office markets have to offer? Select any location from those linked below to check out the local listings!</p>

<table id="tablepress-41" class="tablepress tablepress-id-41">
<tbody>
<tr class="row-1">
	<td class="column-1"><a href="https://www.commercialcafe.com/office/us/nj/jersey-city/" rel="noopener" target="_blank">Office space in Jersey City</a></td><td class="column-2"><a href="https://www.commercialcafe.com/office/us/ca/los-angeles/" rel="noopener" target="_blank">Office space in Los Angeles</a></td><td class="column-3"><a href="https://www.commercialcafe.com/office/us/fl/fort-lauderdale/" rel="noopener" target="_blank">Office space in Fort Lauderdale</a></td>
</tr>
<tr class="row-2">
	<td class="column-1"><a href="https://www.commercialcafe.com/office/us/tx/houston/" rel="noopener" target="_blank">Office space in Houston</a></td><td class="column-2"><a href="https://www.commercialcafe.com/office/us/il/chicago/" rel="noopener" target="_blank">Office space in Chicago</a></td><td class="column-3"><a href="https://www.commercialcafe.com/office/us/nj/essex-county/newark/" rel="noopener" target="_blank">Office space in Newark</a></td>
</tr>
<tr class="row-3">
	<td class="column-1"><a href="https://www.commercialcafe.com/office/us/tx/dallas/" rel="noopener" target="_blank">Office space in Dallas</a></td><td class="column-2"><a href="https://www.commercialcafe.com/office/us/ca/san-francisco/" rel="noopener" target="_blank">Office space in San Francisco</a></td><td class="column-3"><a href="https://www.commercialcafe.com/office/us/ny/queens/long-island-city/" rel="noopener" target="_blank">Office space in Long Island City</a></td>
</tr>
<tr class="row-4">
	<td class="column-1"><a href="https://www.commercialcafe.com/office/us/tx/austin/" rel="noopener" target="_blank">Office space in Austin</a></td><td class="column-2"><a href="https://www.commercialcafe.com/office/us/wa/seattle/" rel="noopener" target="_blank">Office space in Seattle</a></td><td class="column-3"><a href="https://www.commercialcafe.com/office/us/tx/fort-worth/" rel="noopener" target="_blank">Office space in Fort Worth</a></td>
</tr>
<tr class="row-5">
	<td class="column-1"><a href="https://www.commercialcafe.com/office/us/nc/charlotte/" rel="noopener" target="_blank">Office space in Charlotte</a></td><td class="column-2"><a href="https://www.commercialcafe.com/office/us/nv/las-vegas/" rel="noopener" target="_blank">Office space in Las Vegas</a></td><td class="column-3"><a href="https://www.commercialcafe.com/office/us/ca/oakland/" rel="noopener" target="_blank">Office space in Oakland</a></td>
</tr>
<tr class="row-6">
	<td class="column-1"><a href="https://www.commercialcafe.com/office/us/ma/boston/" rel="noopener" target="_blank">Office space in Boston</a></td><td class="column-2"><a href="https://www.commercialcafe.com/office/us/co/denver/" rel="noopener" target="_blank">Office space in Denver</a></td><td class="column-3"><a href="https://www.commercialcafe.com/office/us/tx/montgomery-county/the-woodlands/" rel="noopener" target="_blank">Office space in The Woodlands</a></td>
</tr>
<tr class="row-7">
	<td class="column-1"><a href="https://www.commercialcafe.com/office/us/ga/atlanta/" rel="noopener" target="_blank">Office space in Atlanta</a></td><td class="column-2"><a href="https://www.commercialcafe.com/office/us/dc/washington/" rel="noopener" target="_blank">Office space in Washington, D.C.</a></td><td class="column-3"><a href="https://www.commercialcafe.com/office/us/fl/west-palm-beach/" rel="noopener" target="_blank">Office space in West Palm Beach</a></td>
</tr>
<tr class="row-8">
	<td class="column-1"><a href="https://www.commercialcafe.com/office/us/fl/miami/" rel="noopener" target="_blank">Office space in Miami</a></td><td class="column-2"><a href="https://www.commercialcafe.com/office/us/tx/arlington/" rel="noopener" target="_blank">Office space in Arlington</a></td><td class="column-3"><a href="https://www.commercialcafe.com/office/us/or/portland/" rel="noopener" target="_blank">Office space in Portland</a></td>
</tr>
<tr class="row-9">
	<td class="column-1"><a href="https://www.commercialcafe.com/office/us/ca/irvine/" rel="noopener" target="_blank">Office space in Irvine</a></td><td class="column-2"><a href="https://www.commercialcafe.com/office/us/pa/philadelphia/" rel="noopener" target="_blank">Office space in Philadelphia</a></td><td class="column-3"><a href="https://www.commercialcafe.com/office/us/ca/santa-clara-county/san-jose/" rel="noopener" target="_blank">Office space in San Jose</a></td>
</tr>
<tr class="row-10">
	<td class="column-1"><a href="https://www.commercialcafe.com/office/us/az/phoenix/" rel="noopener" target="_blank">Office space in Phoenix</a></td><td class="column-2"><a href="https://www.commercialcafe.com/office/us/ca/san-diego/" rel="noopener" target="_blank">Office space in San Diego</a></td><td class="column-3"><a href="https://www.commercialcafe.com/office/us/tx/bexar-county/san-antonio/" rel="noopener" target="_blank">Office space in San Antonio</a></td>
</tr>
<tr class="row-11">
	<td class="column-1"><a href="https://www.commercialcafe.com/office/us/ny/brooklyn/" rel="noopener" target="_blank">Office space Brooklyn</a></td><td class="column-2"><a href="https://www.commercialcafe.com/office/us/ny/queens/" rel="noopener" target="_blank">Office space in Queens</a></td><td class="column-3"><a href="https://www.commercialcafe.com/office/us/pa/pittsburgh/" rel="noopener" target="_blank">Office space in Pittsburgh</a></td>
</tr>
</tbody>
</table>

<p>The post <a href="https://www.commercialcafe.com/blog/top-50-us-office-sales-2019/">Top 50 US Office Sales of 2019: Google’s Real Estate Empire Keeps Growing</a> appeared first on <a href="https://www.commercialcafe.com/blog">CommercialCafe</a>.</p>
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		<title>Amazon Officially Opens Tech Hub in Houston</title>
		<link>https://www.commercialcafe.com/blog/amazon-officially-opens-tech-hub-houston/</link>
		
		<dc:creator><![CDATA[Sanziana Bona]]></dc:creator>
		<pubDate>Mon, 13 Jan 2020 14:26:58 +0000</pubDate>
				<category><![CDATA[Commercial Real Estate News]]></category>
		<category><![CDATA[Deals]]></category>
		<category><![CDATA[Office]]></category>
		<category><![CDATA[Resources]]></category>
		<category><![CDATA[Technology]]></category>
		<category><![CDATA[Houston]]></category>
		<guid isPermaLink="false">https://www.commercialcafe.com/blog/?p=25968</guid>

					<description><![CDATA[<p><img width="1180" height="461" src="https://www.commercialcafe.com/blog/wp-content/uploads/sites/10/smart-glass.jpg?w=1180" class="attachment-post-thumbnail size-post-thumbnail wp-post-image" alt="" decoding="async" loading="lazy" /></p>
<p><img width="1180" height="461" src="https://www.commercialcafe.com/blog/wp-content/uploads/sites/10/smart-glass.jpg?w=1180" class="attachment-small size-small wp-post-image" alt="" style="margin-bottom:10px;" decoding="async" loading="lazy" />July 26, 2019 was a big day for Houston as Amazon opened its 18th tech hub in the country. With an office space meant to be occupied by 150 employees working in web services and covering everything from software engineering and data analytics to marketing and sales, the Amazon tech hub is expected to not &#8230;</p>
<p>The post <a href="https://www.commercialcafe.com/blog/amazon-officially-opens-tech-hub-houston/">Amazon Officially Opens Tech Hub in Houston</a> appeared first on <a href="https://www.commercialcafe.com/blog">CommercialCafe</a>.</p>
]]></description>
										<content:encoded><![CDATA[<p><img width="1180" height="461" src="https://www.commercialcafe.com/blog/wp-content/uploads/sites/10/smart-glass.jpg?w=1180" class="attachment-post-thumbnail size-post-thumbnail wp-post-image" alt="" decoding="async" loading="lazy" /></p><img width="1180" height="461" src="https://www.commercialcafe.com/blog/wp-content/uploads/sites/10/smart-glass.jpg?w=1180" class="attachment-small size-small wp-post-image" alt="" style="margin-bottom:10px;" decoding="async" loading="lazy" /><p>July 26, 2019 was a big day for <a href="https://www.commercialcafe.com/office/us/tx/houston/" target="_blank" rel="noopener noreferrer">Houston </a>as Amazon opened its 18th tech hub in the country. With an office space meant to be occupied by 150 employees working in web services and covering everything from software engineering and data analytics to marketing and sales, the Amazon tech hub is expected to not only bring new jobs, but also programs to train prospects in the area for future careers in computer science.</p>
<div id="attachment_25969" style="width: 385px" class="wp-caption alignright"><img loading="lazy" decoding="async" aria-describedby="caption-attachment-25969" class="wp-image-25969 size-medium" src="https://www.commercialcafe.com/blog/wp-content/uploads/sites/10/CityCenter-5-Houston-375x300.jpg" alt="office building Houston" width="375" height="300" /><p id="caption-attachment-25969" class="wp-caption-text">Citycentre 5 building at 825 Town and Country Lane, Houston</p></div>
<p>The tech hub is to be in the <a href="https://www.commercialcafe.com/commercial-property/us/tx/houston/citycentre-five/" target="_blank" rel="noopener noreferrer">Citycentre 5</a> building, part of the Citycentre complex. It’s one of the most recent office developments, offering 200,000 square feet of office space spread across 15 stories, along with 8,000 square feet of ground floor restaurant and retail space, as well as an integrated parking garage. The building also features Class A finishes throughout, as well as three floors with 20-foot ceilings. Amazon is occupying 25,000 square feet of the building located at 825 Town and Country Lane.</p>
<p>Citycentre, developed by Midway, is meant to be a self-contained community and includes everything from retail to office space, upscale apartments, green spaces, a fitness facility, and a cinema, among others. <a href="https://www.rentcafe.com/apartments-for-rent/us/tx/houston/" target="_blank" rel="noopener noreferrer">Apartments for rent in Houston</a> near the best amenities the city can offer, as well as prime office spaces, are in high demand in the community. Houston-based Midway is a privately owned, fully integrated real estate investment and development firm.</p>
<p>The post <a href="https://www.commercialcafe.com/blog/amazon-officially-opens-tech-hub-houston/">Amazon Officially Opens Tech Hub in Houston</a> appeared first on <a href="https://www.commercialcafe.com/blog">CommercialCafe</a>.</p>
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		<post-id xmlns="com-wordpress:feed-additions:1">25968</post-id>	</item>
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		<title>Small Texas Cities That Added the Most Office Space Since 2009</title>
		<link>https://www.commercialcafe.com/blog/small-texas-cities-that-added-the-most-office-space-since-2009/</link>
		
		<dc:creator><![CDATA[Robert Demeter]]></dc:creator>
		<pubDate>Thu, 09 Jan 2020 15:15:46 +0000</pubDate>
				<category><![CDATA[Commercial Real Estate News]]></category>
		<category><![CDATA[Development]]></category>
		<category><![CDATA[Featured]]></category>
		<category><![CDATA[Market Reports]]></category>
		<category><![CDATA[Office]]></category>
		<category><![CDATA[Austin]]></category>
		<category><![CDATA[Dallas]]></category>
		<category><![CDATA[Frisco]]></category>
		<category><![CDATA[Houston]]></category>
		<category><![CDATA[Irving]]></category>
		<category><![CDATA[Plano]]></category>
		<category><![CDATA[Texas]]></category>
		<guid isPermaLink="false">https://www.commercialcafe.com/blog/?p=25986</guid>

					<description><![CDATA[<p><img width="1180" height="461" src="https://www.commercialcafe.com/blog/wp-content/uploads/sites/10/dallas-skyline.jpg?w=1180" class="attachment-post-thumbnail size-post-thumbnail wp-post-image" alt="" decoding="async" loading="lazy" /></p>
<p><img width="1180" height="461" src="https://www.commercialcafe.com/blog/wp-content/uploads/sites/10/dallas-skyline.jpg?w=1180" class="attachment-small size-small wp-post-image" alt="" style="margin-bottom:10px;" decoding="async" loading="lazy" />Office construction has been booming throughout the last decade in Texas and demand for new space is showing no signs of slowing down. Furthermore, Texas continues to be a top choice for corporate relocations due to favorable tax conditions and a highly skilled workforce. Specifically, more than 100 million square feet of new office space &#8230;</p>
<p>The post <a href="https://www.commercialcafe.com/blog/small-texas-cities-that-added-the-most-office-space-since-2009/">Small Texas Cities That Added the Most Office Space Since 2009</a> appeared first on <a href="https://www.commercialcafe.com/blog">CommercialCafe</a>.</p>
]]></description>
										<content:encoded><![CDATA[<p><img width="1180" height="461" src="https://www.commercialcafe.com/blog/wp-content/uploads/sites/10/dallas-skyline.jpg?w=1180" class="attachment-post-thumbnail size-post-thumbnail wp-post-image" alt="" decoding="async" loading="lazy" /></p><img width="1180" height="461" src="https://www.commercialcafe.com/blog/wp-content/uploads/sites/10/dallas-skyline.jpg?w=1180" class="attachment-small size-small wp-post-image" alt="" style="margin-bottom:10px;" decoding="async" loading="lazy" /><p>Office construction has been booming throughout the last decade in Texas and demand for new space is showing no signs of slowing down. Furthermore, Texas continues to be a top choice for corporate relocations due to favorable tax conditions and a highly skilled workforce.</p>
<p>Specifically, more than 100 million square feet of new office space was added in The Lone Star state’s top three office markets—Houston, Dallas-Fort Worth and Austin—in the last decade. According to Yardi Matrix, Austin is leading the nation’s office supply pipeline with more than 7 million square feet of space currently under construction—10.5% of the total national stock. Dallas and Houston have 6.2 million and 2.9 million square feet under construction, respectively.</p>
<p>While the numbers for these markets are undoubtedly remarkable, we took the time to see which small cities in Texas added the most office space between 2009 and 2019 and came up with a top 10 list. We researched cities with populations less than 300,000 people and only office spaces larger than 25,000 square feet were considered.</p>
<p>We also looked at property characteristics, including office class and type, ownership status, and the amount of office space scheduled for delivery in 2020. Read on to find out more.</p>
<div class="infogram-embed" data-id="b58a8978-be8c-4178-80ca-9e62ab90613a" data-type="interactive" data-title="Local Story - TX - All cities table"></div>
<p><script>!function(e,i,n,s){var t="InfogramEmbeds",d=e.getElementsByTagName("script")[0];if(window[t]&&window[t].initialized)window[t].process&&window[t].process();else if(!e.getElementById(n)){var o=e.createElement("script");o.async=1,o.id=n,o.src="https://e.infogram.com/js/dist/embed-loader-min.js",d.parentNode.insertBefore(o,d)}}(document,0,"infogram-async");</script></p>
<h2>More Than 32 Million Square Feet of Office Space Came Online in 10 Texas Cities Since 2009</h2>
<p>The ten cities added 32.4 million square feet of office space in the span of 10 years—a total of 192 properties. Just under 28 million square feet came from 107 buildings that were larger than 100,000 square feet, while the remaining 4.4 million square feet was spread across 85 buildings with less than 100,000 square feet. This shows that both small and large offices are in demand in Texas, and the state can accommodate a large variety of companies and businesses.</p>
<p>Of the total 192 buildings, 33 are owner-occupied while the remainder are under lease.</p>
<p>The top 10 list was dominated by Dallas- and Houston-area cities, with only one Austin neighboring city squeezing in at #10, and a Midland/Odessa-area city at #7.</p>
<div class="infogram-embed" data-id="02cee692-5d3d-4fa8-90bc-6bd9fa226563" data-type="interactive" data-title="Local Story TX - Office Square Feet Added - By year"></div>
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<h2>Plano Adds More Than 10 Million Square Feet of Rentable Office Space in 10 Years</h2>
<p>Just over 10.5 million square feet of office space hit the market in North Dallas’ Plano between 2009 and 2019—a 40% increase. Two major players relocated their headquarters to Plano a couple of years ago, namely Toyota and JPMorgan. Toyota Headquarters at Legacy West is a massive development encompassing 2 million square feet, while JPMorgan Headquarters at Legacy West is a one-million-square-foot building.</p>
<p>Roughly 9.5 million square feet came from 29 buildings that were larger than 100,000 square feet, while 975,000 square feet was spread across 20 buildings. FedEx’s new headquarters is also among these smaller offices.</p>
<p>Of the 49 total office buildings, 36 were Class A.</p>
<p>With all of this activity happening in Plano, it’s no wonder that the city is ranked as one of the <a href="https://www.planotexas.org/675/Plano-2-Best-City-for-Jobs" target="_blank" rel="noopener noreferrer">best places</a> to find a job in the United States.</p>
<div class="infogram-embed" data-id="c2b79841-0de8-48a9-b1a6-a9d4b16e8e85" data-type="interactive" data-title="Local Story - TX - Plano 3 Pie Chart"></div>
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<h2>Irving &amp; The Woodlands Combined Add 8.5 Million Square Feet of Space</h2>
<p>Irving delivered 21 properties in the span of 10 years, totaling 4.5 million square feet of Class A &amp; B office spaces. The largest addition was the Pioneer Natural Resources headquarters, which is a 1.1 million-square-foot development. The Dallas&#8211;area city added 16 large developments and five smaller offices.</p>
<p>Some of the office buildings scheduled to come online by the second half of 2020 in Irving include the 250,000-square-foot and 201,000-square-foot Cypress Waters properties, as well as the smaller 70,000-square-foot Gateway 161 building at 6121 North State Highway 161.</p>
<div class="infogram-embed" data-id="2442bfb0-81cc-4e95-98c2-4860586d2b8b" data-type="interactive" data-title="Local Story - TX - Irving 3 Pie Chart"></div>
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<p>North Houston’s The Woodlands added 4.1 million square feet of space across 23 buildings. Only one of the 23 properties was a Class B asset; the rest were Class A. As in the other cities, large developments greater than 100,000 square feet dominated the market. Specifically, Anadarko Hackett Tower was the most sizeable project; the property encompasses 550,000 square feet.</p>
<p>Most of the new properties built in The Woodlands between 2009 and 2019 are general offices.</p>
<h2>Construction Dominated by General Office Property Types</h2>
<p>Among the top 10 cities, general office property types led the development pipeline. In particular, 148 of the total 192 buildings built since 2009 are general offices. The remaining properties are made up by several street retail assets, a couple of medical buildings and restaurants.</p>
<p>A total of 26 coworking spaces were also constructed in the last 10 years in these cities. This comes as no surprise, as both the Dallas-Fort Worth metropolitan statistical area (MSA) and Houston MSA are among the leading coworking markets in the U.S. According to Yardi Matrix, Dallas-Fort Worth boasts 3.5 million square feet of coworking space, while Houston encompasses 2.2 million.</p>
<h2>About 2.5 Million Square Feet of Space Hit Frisco Between From 2009-2019</h2>
<p>Frisco added almost 2.5 million square feet of office space in 10 years—a total of 17 buildings. As far as deliveries go, 11 properties were class A, while the remainder were class B.</p>
<p>The largest and most ambitious project was The Ford Center at The Star, a 400,000-square-foot development at 1 Cowboys Way. The property, owned by Blue Star Land, is a six-story, low-rise building, and was built in 2017.</p>
<p>Despite the substantial office development and healthy economy, Frisco remains a relatively affordable city. In fact, it’s ranked as the <a href="https://www.marketwatch.com/story/the-best-affordable-places-to-live-in-texas-2019-09-09" target="_blank" rel="noopener noreferrer">5<sup>th</sup>-most affordable city</a> in the state.</p>
<div class="infogram-embed" data-id="8cdb06fa-bfaa-4b4b-b5a1-025e9b8ebbc0" data-type="interactive" data-title="Copy: Local Story - TX - Irving 3 Pie Chart"></div>
<p><script>!function(e,i,n,s){var t="InfogramEmbeds",d=e.getElementsByTagName("script")[0];if(window[t]&&window[t].initialized)window[t].process&&window[t].process();else if(!e.getElementById(n)){var o=e.createElement("script");o.async=1,o.id=n,o.src="https://e.infogram.com/js/dist/embed-loader-min.js",d.parentNode.insertBefore(o,d)}}(document,0,"infogram-async");</script></p>
<h2>Austin MSA’s Round Rock Lands at #10</h2>
<p>Round Rock is the only Austin MSA city that made the top 10 list; it was just 7,000 square feet short of reaching 1 million square feet added to the city in the span of 10 years. Furthermore, Round Rock is the only city on our list that had a larger number of small developments than larger ones. Roughly 730,000 square feet came from 12 buildings with less than 100,000 square feet, while the remaining 264,000 square feet was spread across two buildings with more than 100,000 square feet.</p>
<p>The two largest buildings were both around 130,000 square feet, and the smallest was just under 30,000 square feet.</p>
<p>By the end of the second half of 2020, another small asset will come online, namely the 25,200-square-foot University Square.</p>
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<p>CommercialCafe has completed similar studies on <a href="https://www.commercialcafe.com/blog/florida-cities-under-300k-office-space/" target="_blank" rel="noopener noreferrer">Florida</a> and <a href="https://www.commercialcafe.com/blog/california-office-construction-cities-under-300k-residents/" target="_blank" rel="noopener noreferrer">California</a>. Be sure to check those out, too!</p>
<p><strong>Methodology:</strong></p>
<p><em>We looked at all office properties greater than 25,000 square feet in Texas cities with populations of less than 300,000 residents.</em></p>
<p><em>Data on office square footage for each city is based on properties built or shown as completed between January 1, 2009, and December 5, 2019.</em></p>
<p><em>Data on office space currently in development is based on properties currently under construction, with estimated delivery dates between December 31, 2019, and June 30, 2020.</em></p>
<p><em>We only included the total amount of office square feet incorporated in these properties, excluding square footage with other uses (such as retail, hotel, etc.).</em></p>
<p><em>Data for population, income, employment and housing was obtained from the U.S. Census Bureau reports for 2009 and 2018.</em></p>
<p><em>Data extraction date: December 5, 2019.</em></p>
<p><em>Data sources: Yardi Matrix and the U.S. Census Bureau.</em></p>
<p>The post <a href="https://www.commercialcafe.com/blog/small-texas-cities-that-added-the-most-office-space-since-2009/">Small Texas Cities That Added the Most Office Space Since 2009</a> appeared first on <a href="https://www.commercialcafe.com/blog">CommercialCafe</a>.</p>
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		<post-id xmlns="com-wordpress:feed-additions:1">25986</post-id>	</item>
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		<title>Highlights from Yardi Matrix Coworking Report</title>
		<link>https://www.commercialcafe.com/blog/highlights-yardi-matrix-coworking-report/</link>
		
		<dc:creator><![CDATA[Gemma Church]]></dc:creator>
		<pubDate>Tue, 03 Dec 2019 13:10:35 +0000</pubDate>
				<category><![CDATA[Coworking]]></category>
		<category><![CDATA[Resources]]></category>
		<category><![CDATA[Boston]]></category>
		<category><![CDATA[Dallas]]></category>
		<category><![CDATA[Houston]]></category>
		<category><![CDATA[Manhattan]]></category>
		<category><![CDATA[San Francisco]]></category>
		<category><![CDATA[Seattle]]></category>
		<guid isPermaLink="false">https://www.commercialcafe.com/blog/?p=25309</guid>

					<description><![CDATA[<p><img width="1180" height="461" src="https://www.commercialcafe.com/blog/wp-content/uploads/sites/10/Yardi-Kube.jpg?w=1180" class="attachment-post-thumbnail size-post-thumbnail wp-post-image" alt="" decoding="async" loading="lazy" /></p>
<p><img width="1180" height="461" src="https://www.commercialcafe.com/blog/wp-content/uploads/sites/10/Yardi-Kube.jpg?w=1180" class="attachment-small size-small wp-post-image" alt="" style="margin-bottom:10px;" decoding="async" loading="lazy" />In October 2019, a special Yardi Matrix Coworking Report was released. It warned operators that coworking’s rapid growth will be tested in the years ahead.  Yardi’s study was based on a review of the leases of 5.5 billion square feet of office space in the top 50 markets in the U.S. The study covered buildings &#8230;</p>
<p>The post <a href="https://www.commercialcafe.com/blog/highlights-yardi-matrix-coworking-report/">Highlights from Yardi Matrix Coworking Report</a> appeared first on <a href="https://www.commercialcafe.com/blog">CommercialCafe</a>.</p>
]]></description>
										<content:encoded><![CDATA[<p><img width="1180" height="461" src="https://www.commercialcafe.com/blog/wp-content/uploads/sites/10/Yardi-Kube.jpg?w=1180" class="attachment-post-thumbnail size-post-thumbnail wp-post-image" alt="" decoding="async" loading="lazy" /></p><img width="1180" height="461" src="https://www.commercialcafe.com/blog/wp-content/uploads/sites/10/Yardi-Kube.jpg?w=1180" class="attachment-small size-small wp-post-image" alt="" style="margin-bottom:10px;" decoding="async" loading="lazy" /><p><span style="font-weight: 400;">In October 2019, a special Yardi Matrix Coworking Report was released. It warned operators that coworking’s rapid growth will be tested in the years ahead. </span></p>
<p><span style="font-weight: 400;">Yardi’s study was based on a review of the leases of 5.5 billion square feet of office space in the top 50 markets in the U.S. The study covered buildings with 50,000 square feet or more in some metros and 25,000 square feet or more in others.</span></p>
<p><span style="font-weight: 400;">The </span><a href="https://www.yardimatrix.com/Media/Contact-Signup/Form/ReportDownloads?fcurl=%2fMedia%2fDownloads%2fFile%2f885-MatrixBulletinCoworking-October2019" target="_blank" rel="noopener noreferrer"><span style="font-weight: 400;">Shared Space: Coworking’s Rapid Growth Set to be Tested</span></a><span style="font-weight: 400;"> report reveals that the coworking market continues to grow rapidly with new business models emerging.</span></p>
<p><span style="font-weight: 400;">According to a study of Yardi Matrix’s office database, the top 50 office markets contain a total of 93.2 million square feet of coworking space as of September 2019, or 1.7% of total office space.</span></p>
<p><span style="font-weight: 400;">However, this steady growth may seem at odds with the recent press surrounding the major coworking operator </span><a href="https://www.commercialcafe.com/blog/coworking-spotlight-will-boom-bust-wework/" target="_blank" rel="noopener noreferrer"><span style="font-weight: 400;">WeWork.</span></a> A<span style="font-weight: 400;">ccording to the report, WeWork&#8217;s recent fate “drives the impression the entire business model is at risk.”</span></p>
<h2>Growth Comes From Confluence</h2>
<p><span style="font-weight: 400;">In fact, </span>according to the report, the continued growth of the coworking industry is a result of a confluence of trends in the office market. These include:</p>
<ol>
<li style="font-weight: 400;"><b>The rise of the gig economy</b><span style="font-weight: 400;"> &#8211; which increases the number of independent workers who need flexible office space when working away from the home and conventional offices.</span></li>
<li style="font-weight: 400;"><b>Growing employment in the tech sector</b><span style="font-weight: 400;"> &#8211; which also increases the number of start-ups and independent contractors that want to rent small blocks of space.</span></li>
<li style="font-weight: 400;"><b>Corporations wanting more flexible leases </b><span style="font-weight: 400;">&#8211; which need flexible space for their remote offices.</span></li>
<li style="font-weight: 400;"><b>Worker demands</b><span style="font-weight: 400;"> &#8211; today&#8217;s workforce wants office buildings with rich amenities and a strong community.</span></li>
</ol>
<h2>Urban Phenomenon, Suburban Potential</h2>
<p><span style="font-weight: 400;">Coworking has developed more quickly in urban areas than in suburban areas, with 63.3 million square feet and 30.4 million square feet respectively.</span></p>
<p><span style="font-weight: 400;">The report concedes that urban environments have a natural advantage over suburban areas though. For example, there is a greater concentration of workers, tech companies, and public transport links. In particular, coworking thrives in cities with large technology sectors.</span></p>
<p><span style="font-weight: 400;">The penetration of coworking is highest in new market economies and tight vacancy rates. Over the course of three surveys to date, a strong correlation is revealed between markets with low vacancy rates and high percentages of coworking as a share of stock.</span></p>
<p><span style="font-weight: 400;">The report reveals: “<a href="https://www.commercialcafe.com/coworking-space/us/ny/manhattan/" target="_blank" rel="noopener noreferrer">Manhattan</a>, <a href="https://www.commercialcafe.com/coworking-space/us/ca/san-francisco/" target="_blank" rel="noopener noreferrer">San Francisco</a>, <a href="https://www.commercialcafe.com/coworking-space/us/wa/seattle/" target="_blank" rel="noopener noreferrer">Seattle</a> and <a href="https://www.commercialcafe.com/coworking-space/us/ma/boston/" target="_blank" rel="noopener noreferrer">Boston</a>—among the leaders in coworking as a percentage of stock— all have office vacancy rates below 10.0%, well below the 13.5% national average.” </span></p>
<p><span style="font-weight: 400;">“Meanwhile, metros such as <a href="https://www.commercialcafe.com/coworking-space/us/tx/houston/" target="_blank" rel="noopener noreferrer">Houston</a>, <a href="https://www.commercialcafe.com/coworking-space/us/tx/dallas/" target="_blank" rel="noopener noreferrer">Dallas</a> and New Jersey—which have vacancy rates of at least 18.5% —have a much smaller percentage of coworking space.” </span></p>
<p><span style="font-weight: 400;">However, coworking is expected to grow in suburban areas as the industry matures. This is because coworking will draw home workers and provide small satellite office spaces for large corporations.</span></p>
<h2>Roster of Providers Still Small</h2>
<p><span style="font-weight: 400;">WeWork and Regus are dominating the market, accounting for 44.5 million square feet of leases. Between the last quarter of 2018 and October 2019, WeWork increased its space in the top 20 markets by 11.5 million square feet or 71.2%.</span></p>
<p><span style="font-weight: 400;">Other big gainers over the last year include: Spaces, which increased its portfolio to 4.2 million square feet, and Knotel, which increased to 2.7 million square feet. Regus’s growth was relatively modest, adding 580,000 square feet year-over-year, up 3.7%.</span></p>
<p><span style="font-weight: 400;">Additionally, the report references WeWork’s recent issues. It expects this will result in office owners giving “extra scrutiny to coworking leases while large corporate users … are likely to think twice before getting involved in a situation that might create legal entanglements.”</span></p>
<p><span style="font-weight: 400;">However, the report concedes, despite recent turbulent times, that “it does not change the fact that corporations and small users alike increasingly demand space with the type of amenities that attract workers and flexible lease arrangements.&#8221; </span></p>
<h2>Evolving Business Models</h2>
<p><span style="font-weight: 400;">New business models are emerging within the coworking industry. For example, if a downturn occurs, there are concerns that the building owner would be left with high long-term expenses and minimal income. So, a partnership model has emerged where landlords are teaming up with coworking companies.</span></p>
<p><span style="font-weight: 400;">Coworking is also appearing outside of traditional office buildings in areas such as malls, college campuses, hotels, and new residential apartment blocks.</span></p>
<p><span style="font-weight: 400;">Yardi Matrix has identified 1,500 coworking properties outside of traditional office buildings, roughly 30% of the total facility count in its database. </span></p>
<p><span style="font-weight: 400;">The report concludes: “The future of workspace will reward flexibility and design that helps employers attract workers in the knowledge economy. That would seem to guarantee a healthy future for coworking, although exactly how the business accommodates those demands is likely to keep evolving in coming years.”</span></p>
<p>The post <a href="https://www.commercialcafe.com/blog/highlights-yardi-matrix-coworking-report/">Highlights from Yardi Matrix Coworking Report</a> appeared first on <a href="https://www.commercialcafe.com/blog">CommercialCafe</a>.</p>
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		<post-id xmlns="com-wordpress:feed-additions:1">25309</post-id>	</item>
		<item>
		<title>Top U.S. Cities Add 682 Million Square Feet of Office Space in 10 Years</title>
		<link>https://www.commercialcafe.com/blog/top-u-s-cities-add-682-million-square-feet-of-office-space-in-10-years/</link>
		
		<dc:creator><![CDATA[Patrick McGregor]]></dc:creator>
		<pubDate>Tue, 15 Oct 2019 11:55:39 +0000</pubDate>
				<category><![CDATA[Commercial Real Estate News]]></category>
		<category><![CDATA[Development]]></category>
		<category><![CDATA[National]]></category>
		<category><![CDATA[Office]]></category>
		<category><![CDATA[Austin]]></category>
		<category><![CDATA[Bay Area]]></category>
		<category><![CDATA[Boston]]></category>
		<category><![CDATA[Chicago]]></category>
		<category><![CDATA[Dallas]]></category>
		<category><![CDATA[Denver]]></category>
		<category><![CDATA[Houston]]></category>
		<category><![CDATA[Los Angeles]]></category>
		<category><![CDATA[Manhattan]]></category>
		<category><![CDATA[Miami]]></category>
		<category><![CDATA[Minneapolis]]></category>
		<category><![CDATA[Orange County]]></category>
		<category><![CDATA[Pacific Northwest]]></category>
		<category><![CDATA[Philadelphia]]></category>
		<category><![CDATA[Phoenix]]></category>
		<category><![CDATA[Portland]]></category>
		<category><![CDATA[Salt Lake City]]></category>
		<category><![CDATA[San Diego]]></category>
		<category><![CDATA[San Francisco]]></category>
		<category><![CDATA[Seattle]]></category>
		<category><![CDATA[Silicon Valley]]></category>
		<category><![CDATA[Southern California]]></category>
		<guid isPermaLink="false">https://www.commercialcafe.com/blog/?p=24820</guid>

					<description><![CDATA[<p><img width="1180" height="461" src="https://www.commercialcafe.com/blog/wp-content/uploads/sites/10/Office_Square_Footage_Expansion_596525282_Featured-image.jpg?w=1180" class="attachment-post-thumbnail size-post-thumbnail wp-post-image" alt="" decoding="async" loading="lazy" /></p>
<p><img width="1180" height="461" src="https://www.commercialcafe.com/blog/wp-content/uploads/sites/10/Office_Square_Footage_Expansion_596525282_Featured-image.jpg?w=1180" class="attachment-small size-small wp-post-image" alt="" style="margin-bottom:10px;" decoding="async" loading="lazy" />Key takeaways: 682 million square feet of office space have been added across the country in the last 10 years. Campus-style tech companies greatly influenced the suburban expansion throughout the U.S. New York City, Chicago, and San Francisco grew the most on the fringes of the urban cores. The expansion of office space can tell &#8230;</p>
<p>The post <a href="https://www.commercialcafe.com/blog/top-u-s-cities-add-682-million-square-feet-of-office-space-in-10-years/">Top U.S. Cities Add 682 Million Square Feet of Office Space in 10 Years</a> appeared first on <a href="https://www.commercialcafe.com/blog">CommercialCafe</a>.</p>
]]></description>
										<content:encoded><![CDATA[<p><img width="1180" height="461" src="https://www.commercialcafe.com/blog/wp-content/uploads/sites/10/Office_Square_Footage_Expansion_596525282_Featured-image.jpg?w=1180" class="attachment-post-thumbnail size-post-thumbnail wp-post-image" alt="" decoding="async" loading="lazy" /></p><img width="1180" height="461" src="https://www.commercialcafe.com/blog/wp-content/uploads/sites/10/Office_Square_Footage_Expansion_596525282_Featured-image.jpg?w=1180" class="attachment-small size-small wp-post-image" alt="" style="margin-bottom:10px;" decoding="async" loading="lazy" /><p>Key takeaways:</p>
<ul>
<li>682 million square feet of office space have been added across the country in the last 10 years.</li>
<li>Campus-style tech companies greatly influenced the suburban expansion throughout the U.S.</li>
<li>New York City, Chicago, and San Francisco grew the most on the fringes of the urban cores.</li>
</ul>
<p>The expansion of office space can tell us a lot about business, such as: where the demand is, what drives development in a given area, whether a specific type of industry drives a specific type of expansion, and how all of these things relate to the movement of people.</p>
<p>Using data provided by CommercialEdge, we identified properties with at least 25,000 square feet across 20 top markets based on primary and secondary locations, as well as whether they were urban, suburban or in the central business district (CBD). We then analyzed the office footprint within each area from 2008 and 2018 to see where the expansion and growth was in the last decade. <strong>For consistency,</strong> <strong>“urban” does not include the central business district;</strong> these metrics were calculated separately.</p>
<p>One thing to keep in mind when analyzing growth data is size. Suburban geographies are larger than their urban centers and, consequently, can handle far more growth. But the suburbs also tend to have more square footage already. So, while 4 million square feet added to a secondary urban location may represent a high growth rate for that designation, the same addition in a large suburban location may be quite low relative to the existing stock.</p>
<h2>Regional Growth Favors Urban or Suburban, Rarely Both</h2>
<p>Regionally, the areas of growth were relatively distinct. Urban areas in the Pacific Northwest grew by nearly 32%, adding a total 112 properties and 19.8 million square feet. The Midwestern urban areas added 192 properties and 21.6 million square feet—an increase of 18.5% in the last decade.</p>
<p>The urban areas of the Northeast region—which includes Philadelphia, New York City, and Boston—grew by 16.5%. This is surprising given how dense these cities already are and represents more than 55 million square feet across 290 properties. What’s more, this designation doesn’t even consider the central business districts, which collectively grew by 5.3% for an additional 24 million square feet.</p>
<p>Also, no region added more square footage than the Northeast—at 130.5 million. The Southwest region added more than 108 million square feet of office space in the last 10 years, but in contrast to the Northeast, a full three-quarters of the added square footage was in suburban locations. This relationship makes a lot of sense given the composition of these two regions—with dense cities like New York City and Boston in the northeast and the sprawling suburbs of Dallas-Fort Worth and Houston in the southwest; similar to Los Angeles and Orange County in southern California.</p>
<p>The Western region was no different. Approximately 58 million square feet were added as a whole, 43 million of which was in the suburbs. This includes markets like Denver, Salt Lake City, Las Vegas, and Phoenix, which exemplify suburban sprawl. Driven by this phenomenon, “tech corridors” have also sprung up—such as Buckhead in Atlanta, the Platinum Corridor in Dallas, and Silicon Slopes in Salt Lake City.</p>
<p>Part of the reason for the greater expansion in the west is the availability of cheap land for development, as well as the adoption of office campuses versus office buildings. Companies like Google and Facebook also introduced a plethora of new employee amenities—like free snacks and meals, the ability to bring pets to work, and free transportation to and from work—creating an overall relaxed atmosphere that’s been historically absent in the office buildings of dense city centers.</p>
<p><a href="https://www.commercialcafe.com/blog/wp-content/uploads/sites/10/regional-map.png" rel='prettyPhoto' data-rel="lightbox-image-0" data-rl_title="" data-rl_caption=""><img loading="lazy" decoding="async" class="aligncenter wp-image-25038 size-full" title="" src="https://www.commercialcafe.com/blog/wp-content/uploads/sites/10/regional-map.png" alt="" width="800" height="450" /></a></p>
<p><strong> </strong></p>
<h2>Salt Lake City: An Early Silicon Valley</h2>
<p>The Bay Area is punctuated by one of the most striking suburban expansions. In 2008, primary suburban locations held most of the market’s office space with 141 million square feet. But, 10 years later, the same area added another 28 million square feet—an increase of 20%. This is an impressive feat, to be sure, given that almost all this development was in Silicon Valley.</p>
<p>Companies that defined this transformation include big names like Hewlett-Packard, Intel, Facebook, Google, and Uber. From one of the country’s first radio stations to the first silicon computer processing company to today, Silicon Valley has been the center of the tech world for more than half a century, and it remains home to many companies whose products have changed our lives.</p>
<p>However, with skyrocketing costs of living and the increasing ease and popularity of remote working, Silicon Valley’s popularity is starting to wane. For example, Salt Lake City has recently seen impressive growth on the heels of the Bay Area. Silicon Slopes—Utah’s tech corridor along I-15 south to Lehi and Provo—has accounted for most of the development, adding more than 9 million square feet of office space since 2008.</p>
<p>The area has also drawn tech industry giants the likes of Oracle, Visa, and Tesla. The presence of these companies in turn draws plenty of talent to the area and drives demand for various workspace options. A thriving coworking scene plays a key role in the productivity of freelancers or remote workers, as many want the option to conduct their daily activities in a dedicated space. CommercialCafe.com can help you find the best coworking solutions across all major U.S. markets:</p>

<table id="tablepress-29" class="tablepress tablepress-id-29">
<tbody>
<tr class="row-1">
	<td class="column-1"><a href="https://www.commercialcafe.com/coworking-space/us/ny/manhattan/" rel="noopener" target="_blank">Coworking spaces in Manhattan</a></td><td class="column-2"><a href="https://www.commercialcafe.com/coworking-space/us/ca/los-angeles/" rel="noopener" target="_blank">Coworking spaces in Los Angeles</a></td>
</tr>
<tr class="row-2">
	<td class="column-1"><a href="https://www.commercialcafe.com/coworking-space/us/tx/houston/" rel="noopener" target="_blank">Coworking spaces in Houston</a></td><td class="column-2"><a href="https://www.commercialcafe.com/coworking-space/us/il/chicago/" rel="noopener" target="_blank">Coworking spaces in Chicago</a></td>
</tr>
<tr class="row-3">
	<td class="column-1"><a href="https://www.commercialcafe.com/coworking-space/us/tx/dallas/" rel="noopener" target="_blank">Coworking spaces in Dallas</a></td><td class="column-2"><a href="https://www.commercialcafe.com/coworking-space/us/ca/san-francisco/" rel="noopener" target="_blank">Coworking spaces in San Francisco</a></td>
</tr>
<tr class="row-4">
	<td class="column-1"><a href="https://www.commercialcafe.com/coworking-space/us/tx/austin/" rel="noopener" target="_blank">Coworking spaces in Austin</a></td><td class="column-2"><a href="https://www.commercialcafe.com/coworking-space/us/wa/seattle/" rel="noopener" target="_blank">Coworking spaces in Seattle</a></td>
</tr>
<tr class="row-5">
	<td class="column-1"><a href="https://www.commercialcafe.com/coworking-space/us/nc/charlotte/" rel="noopener" target="_blank">Coworking spaces in Charlotte</a></td><td class="column-2"><a href="https://www.commercialcafe.com/coworking-space/us/nv/las-vegas/" rel="noopener" target="_blank">Coworking spaces in Las Vegas</a></td>
</tr>
<tr class="row-6">
	<td class="column-1"><a href="https://www.commercialcafe.com/coworking-space/us/ma/boston/" rel="noopener" target="_blank">Coworking spaces in Boston</a></td><td class="column-2"><a href="https://www.commercialcafe.com/coworking-space/us/co/denver/" rel="noopener" target="_blank">Coworking spaces in Denver</a></td>
</tr>
<tr class="row-7">
	<td class="column-1"><a href="https://www.commercialcafe.com/coworking-space/us/ga/atlanta/" rel="noopener" target="_blank">Coworking spaces in Atlanta</a></td><td class="column-2"><a href="https://www.commercialcafe.com/coworking-space/us/dc/washington/" rel="noopener" target="_blank">Coworking spaces in Washington, D.C.</a></td>
</tr>
<tr class="row-8">
	<td class="column-1"><a href="https://www.commercialcafe.com/coworking-space/us/fl/miami/" rel="noopener" target="_blank">Coworking spaces in Miami</a></td><td class="column-2"><a href="https://www.commercialcafe.com/coworking-space/us/ny/brooklyn/" rel="noopener" target="_blank">Coworking spaces in Brooklyn</a></td>
</tr>
<tr class="row-9">
	<td class="column-1"><a href="https://www.commercialcafe.com/coworking-space/us/ca/irvine/" rel="noopener" target="_blank">Coworking spaces in Irvine</a></td><td class="column-2"><a href="https://www.commercialcafe.com/coworking-space/us/pa/philadelphia/" rel="noopener" target="_blank">Coworking spaces in Philadelphia</a></td>
</tr>
<tr class="row-10">
	<td class="column-1"><a href="https://www.commercialcafe.com/coworking-space/us/az/phoenix/" rel="noopener" target="_blank">Coworking spaces in Phoenix</a></td><td class="column-2"><a href="https://www.commercialcafe.com/coworking-space/us/ca/san-diego/" rel="noopener" target="_blank">Coworking spaces in San Diego</a></td>
</tr>
</tbody>
</table>

<h2>Regional HQ Demand in Suburban Phoenix</h2>
<p>Phoenix’s office growth followed suit and expanded largely in suburban locations. Much like Salt Lake City, the cheaper cost of living in <a href="https://www.commercialcafe.com/office/us/az/phoenix/" target="_blank" rel="noopener noreferrer">Phoenix</a> and access to an increasingly educated workforce has incentivized large corporations such as IBM and Boeing to move or expand their offices here.</p>
<p>Of the 131 properties added in the last 10 years, 111 were suburban, representing 11.6 million square feet. Most of this growth was in the east valley along the 101 in Chandler, Tempe, and Scottsdale. Though, the single largest addition was in the urban part of Tempe along the lake. <a href="https://www.commercialcafe.com/commercial-property/us/az/tempe/marina-heights-building-a/" target="_blank" rel="noopener noreferrer">The Marina Heights campus</a>—completed in 2017 and State Farm’s regional headquarters—has 2 million square feet of office space across five buildings.</p>
<h2>Seattle and Portland Grow Together</h2>
<p>The Pacific Northwest markets of Seattle and Portland grew by 17% and 11.2%, respectively, and in very similar ways. The primary urban areas here expanded by far larger margins than the suburbs and the CBDs.</p>
<p>In the <a href="https://www.commercialcafe.com/office/us/wa/seattle/" target="_blank" rel="noopener noreferrer">Seattle</a> market, Bellevue, combined with the central neighborhoods of Lake Union, Denny Triangle, Belltown, and Pioneer Square, increased their office footprint by almost 50%, adding 13.9 million square feet. By comparison, the rest of the market added 8.25 million square feet combined. The expansion of Amazon&#8217;s campus is responsible for much of this growth, but it has also attracted many other businesses to the area, as well.</p>
<p>Portland’s primary urban areas—including the Pearl District, Chinatown, and the West End—collectively grew by 24%, adding 3.6 million square feet. All other neighborhoods in Portland collectively added 3.2 million square feet. Portland’s Urban Growth Boundary policies are at least part of the reason for the concentrated development in urban areas.</p>
<h2>Diverse Growth Trends in the Lone Star State</h2>
<div class="infogram-embed" data-id="b6ffbee0-70e7-45e9-b88b-a1ae8751b14e" data-type="interactive" data-title="Texas Office Inventory Evolution 2008-2018"></div>
<p><script>!function(e,i,n,s){var t="InfogramEmbeds",d=e.getElementsByTagName("script")[0];if(window[t]&&window[t].initialized)window[t].process&&window[t].process();else if(!e.getElementById(n)){var o=e.createElement("script");o.async=1,o.id=n,o.src="https://e.infogram.com/js/dist/embed-loader-min.js",d.parentNode.insertBefore(o,d)}}(document,0,"infogram-async");</script></p>
<p>The Texas markets have also had considerable growth, but in different ways. Like the Bay Area, <a href="https://www.commercialcafe.com/office/us/tx/houston/" target="_blank" rel="noopener noreferrer">Houston</a> and Dallas-Fort Worth have had similar growth in the primary suburban areas. But expansion has been localized to only a few areas. In Houston, <a href="https://www.commercialcafe.com/office/us/tx/montgomery-county/the-woodlands/" target="_blank" rel="noopener noreferrer">The Woodlands</a> alone added over 5.7 million square feet. The Energy Corridor and adjacent neighborhoods—including Memorial Villages, Westchase, and Briargrove—added a whopping 47 buildings totaling 12.5 million square feet.</p>
<p>The Platinum Corridor, Plano, and Las Colinas grew the most in Dallas. These primary suburban locations collectively added 17.7 million square feet—a 19% increase in 10 years—but also represented more than half of all square footage added in the entire <a href="https://www.commercialcafe.com/office/us/tx/dallas/" target="_blank" rel="noopener noreferrer">Dallas</a>&#8211;<a href="https://www.commercialcafe.com/office/us/tx/fort-worth/" target="_blank" rel="noopener noreferrer">Fort Worth</a> market. Dallas continues to be a popular choice for many company headquarters, including Exxon Mobil and McKesson.</p>
<p>However, Austin’s entire suburban market grew more than 22%. Both primary and secondary locations added 11.2 million square feet across 98 properties. Yet, downtown Austin grew by a higher margin—more than 25%. In the last decade, 15 properties were built in Austin’s CBD—adding more than 2 million square feet—with Google, Deloitte and Cirrus Logic opting for downtown locations.</p>
<p><a href="https://www.commercialcafe.com/office/us/tx/austin/" target="_blank" rel="noopener noreferrer">Austin</a> has also become one of the cities that is drawing startups and tech sector jobs from the Pacific Northwest and Silicon Valley, largely due to the cheaper cost of living and highly educated talent. Other cities that have seen similar growth are Phoenix, Salt Lake City, and Nashville.</p>
<p>In general, Texas appears to have been quite attractive, but compared to Dallas and Houston, Austin’s expansion is far more significant given its size. While its population is less than one-third the size of Dallas and Houston, Austin had a similar amount of development, meaning Austin grew by a slightly larger margin than the other two.</p>
<h2>Downtowns Take the Spotlight in Largest Cities</h2>
<p>Suburbia isn’t the only place that’s growing, though. Growth is easier in less dense areas, but distressed neighborhoods have benefits, as well. For example, <a href="https://www.commercialcafe.com/office/us/pa/philadelphia/" target="_blank" rel="noopener noreferrer">Philadelphia</a>’s secondary urban areas have built 28 properties since 2008, adding more than 5.8 million square feet. Similarly, Chicago’s West Loop neighborhood of Fulton Market has considerably gentrified in the last decade and seen 1.9 million square feet of office space added across 11 properties, almost doubling its office space from 2008. Many historic manufacturing buildings have been transformed into class A office spaces, such as the <a href="https://www.commercialcafe.com/commercial-property/us/il/chicago/210-north-green/" target="_blank" rel="noopener noreferrer">210 North Green Street</a> building that added 69,185 square feet, and <a href="https://www.commercialcafe.com/commercial-property/us/il/chicago/801-811-fulton-market/" target="_blank" rel="noopener noreferrer">811 Fulton Market</a> with 61,700 square feet of office space.</p>
<p><a href="https://www.commercialcafe.com/office/us/il/chicago/" target="_blank" rel="noopener noreferrer">Chicago</a> is also one of only a few markets to see substantial growth in its CBD. It added 10 properties and 7.8 million square feet of office space to the Loop and River North, including the 1.2 million-square-foot <a href="https://www.commercialcafe.com/commercial-property/us/il/chicago/150-north-riverside/" target="_blank" rel="noopener noreferrer">150 North Riverside Plaza</a>.</p>
<p><a href="https://www.commercialcafe.com/blog/wp-content/uploads/sites/10/ChicagoManhattan-1.png" rel='prettyPhoto' data-rel="lightbox-image-1" data-rl_title="" data-rl_caption="" title=""><img loading="lazy" decoding="async" class="aligncenter wp-image-25033 size-full" src="https://www.commercialcafe.com/blog/wp-content/uploads/sites/10/ChicagoManhattan-1.png" alt="" width="799" height="311" /></a></p>
<p>Manhattan and Los Angeles also added significant square footage to their CBDs. These iconic downtowns didn’t grow by a large margin given their existing inventory. But the fact that <a href="https://www.commercialcafe.com/office/us/ny/manhattan/" target="_blank" rel="noopener noreferrer">Manhattan’s Midtown and Financial Districts</a> added 17.6 million square feet across 20 buildings in an extremely dense environment is impressive, nonetheless. Hudson Yards had completed two buildings by the end of 2018—<a href="https://www.commercialcafe.com/commercial-property/us/ny/new-york/10-hudson-yards/" target="_blank" rel="noopener noreferrer">10</a> and <a href="https://www.commercialcafe.com/commercial-property/us/ny/new-york/55-hudson-yards/" target="_blank" rel="noopener noreferrer">55 Hudson Yards</a>—totaling more than 3 million square feet.</p>
<p><a href="https://www.commercialcafe.com/office/us/ca/los-angeles/" target="_blank" rel="noopener noreferrer">Los Angeles</a>’ CBD hasn’t seen quite the growth that Manhattan’s has, adding just 1.2 million square feet across 16 properties. 365,000 square feet of that was added as part of the 1.3 million-square-foot <a href="https://www.commercialcafe.com/commercial-property/us/ca/los-angeles/wilshire-grand-center-1/" target="_blank" rel="noopener noreferrer">Wilshire Grand Center</a> which also includes retail space and a hotel. Most of the construction occurred down the hill from Grand Avenue. Seven of the nine primary properties are within one block of South Broadway along the periphery of the primary downtown area. Despite the modest growth, though, its future is bright. A total of 32 projects are either slated to start or are currently under construction and will add almost 6 million square feet to LA’s downtown office footprint in the coming years.</p>
<p>LA’s primary urban areas added the most square footage. They grew by 10% in the last decade, translating to the addition of 8.7 million square feet of office space. These areas encompass Hollywood, Culver City, Santa Monica, and the Jefferson Corridor in Marina Del Rey—easily the largest amount of office square footage in the region.</p>
<p><a href="https://www.commercialcafe.com/blog/wp-content/uploads/sites/10/Los-AngelesMiami-1.png" rel='prettyPhoto' data-rel="lightbox-image-2" data-rl_title="" data-rl_caption="" title=""><img loading="lazy" decoding="async" class="aligncenter size-full wp-image-25035" src="https://www.commercialcafe.com/blog/wp-content/uploads/sites/10/Los-AngelesMiami-1.png" alt="" width="800" height="312" /></a></p>
<p>In addition to these top-tier cities, Miami also added significant square footage to its CBD and primary urban neighborhoods. Excluding suburban locations, <a href="https://www.commercialcafe.com/office/us/fl/miami/" target="_blank" rel="noopener noreferrer">Miami</a> added 18 properties totaling 3.7 million square feet. Two large contributions were the completions of the <a href="https://www.commercialcafe.com/commercial-property/us/fl/miami/wells-fargo-center/" target="_blank" rel="noopener noreferrer">Wells Fargo Center</a> and the <a href="https://www.commercialcafe.com/commercial-property/us/fl/miami/brickell-world-plaza/" target="_blank" rel="noopener noreferrer">Brickell World Plaza</a> which collectively added more than 1.3 million square feet of office space.</p>
<h2>San Francisco Grows in the Urban Fringe</h2>
<p>The <a href="https://www.commercialcafe.com/office/us/ca/san-francisco/" target="_blank" rel="noopener noreferrer">San Francisco</a> market—ranging from Menlo Park north to Santa Rosa—has seen decent growth. As a whole, the market grew by 12%, adding 17.7 million square feet in the last decade. A full one-quarter of that was added in the secondary urban neighborhoods of SOMA and Civic Center. In the CBD, the 387,000-square-foot <a href="https://www.commercialcafe.com/commercial-property/us/ca/san-francisco/350-bush-street/" target="_blank" rel="noopener noreferrer">350 Bush Street</a> building was the only property built since 2008. However, the primary urban areas surrounding the CBD grew by about 4 million square feet across nine properties, one of which was the 1.42-million-square-foot <a href="https://www.commercialcafe.com/commercial-property/us/ca/san-francisco/salesforce-tower/" target="_blank" rel="noopener noreferrer">Salesforce Tower</a>.</p>
<p>Similarly, Minneapolis-St. Paul added very few properties to its CBD in the last 10 years: just four, totaling less than 1 million square feet. However, like San Francisco, the urban fringe saw plenty of development. The secondary urban neighborhoods grew by a whopping 37%—adding 4.2 million square feet—almost 40% of the total added space in the market. Wells Fargo’s Downtown East Campus project was the largest addition, adding 1.2 million total square feet of office space.</p>
<h2>Downtown Growth Stalls in Boston and San Diego</h2>
<p>Conversely, the CBDs of Boston and San Diego haven’t added any office space in 10 years. In San Diego, most of the expansion was in the primary suburban locations of Carlsbad, La Jolla, and University City. While in Boston, the neighborhood of Cambridge and the Seaport Innovation District added roughly 9 million square feet of office space in the last decade.</p>
<p>Both cities currently have a single property under construction though. <a href="https://www.commercialcafe.com/commercial-property/us/ma/boston/congress-square-82-devonshire-40-water-street-35-55-congress-street/" target="_blank" rel="noopener noreferrer">Congress Square</a> just added 247,486 square feet to Boston’s downtown this year, and 120,000 square feet of office space at <a href="https://www.commercialcafe.com/commercial-property/us/ca/san-diego/kettner-ash/" target="_blank" rel="noopener noreferrer">Kettner &amp; Ash</a> will be added to San Diego’s, and both are projected to be completed this year.</p>
<p>The interactive map below gives a visual highlight of how the expansion of space took place in all the markets we analyzed. You can select by market on the right and use the slider on the left to show the evolution of office space by year.</p>
<div id="viz1571035115798" class="tableauPlaceholder" style="position: relative;"><noscript><a href='#'><img alt=' ' src='https:&#47;&#47;public.tableau.com&#47;static&#47;images&#47;Of&#47;OfficeSqftEvolution2008-2018&#47;OfficeSqftEvolution2008-2018&#47;1_rss.png' style='border: none' /></a></noscript><object class="tableauViz" style="display: none;" width="300" height="150"><param name="host_url" value="https%3A%2F%2Fpublic.tableau.com%2F" /><param name="embed_code_version" value="3" /><param name="site_root" value="" /><param name="name" value="OfficeSqftEvolution2008-2018/OfficeSqftEvolution2008-2018" /><param name="tabs" value="no" /><param name="toolbar" value="yes" /><param name="static_image" value="https://public.tableau.com/static/images/Of/OfficeSqftEvolution2008-2018/OfficeSqftEvolution2008-2018/1.png" /><param name="animate_transition" value="yes" /><param name="display_static_image" value="yes" /><param name="display_spinner" value="yes" /><param name="display_overlay" value="yes" /><param name="display_count" value="yes" /></object></div>
<p><script type='text/javascript'>                    var divElement = document.getElementById('viz1571035115798');                    var vizElement = divElement.getElementsByTagName('object')[0];                    if ( divElement.offsetWidth > 800 ) { vizElement.style.width='1140px';vizElement.style.height='827px';} else if ( divElement.offsetWidth > 500 ) { vizElement.style.width='100%';vizElement.style.height='671px';} else { vizElement.style.width='100%';vizElement.style.height='567px';}                     var scriptElement = document.createElement('script');                    scriptElement.src = 'https://public.tableau.com/javascripts/api/viz_v1.js';                    vizElement.parentNode.insertBefore(scriptElement, vizElement);                </script></p>
<p>For those looking for commercial real estate – whether it be industrial, office, or retail space – CommercialCafe.com provides a comprehensive database of listings, covering all of the major U.S. real estate markets.</p>

<table id="tablepress-38" class="tablepress tablepress-id-38">
<tbody>
<tr class="row-1">
	<td class="column-1"><a href="https://www.commercialcafe.com/commercial-real-estate/us/ny/manhattan/" rel="noopener" target="_blank">Manhattan commercial real estate</a></td><td class="column-2"><a href="https://www.commercialcafe.com/commercial-real-estate/us/ca/los-angeles/" rel="noopener" target="_blank">Los Angeles commercial real estate</a></td>
</tr>
<tr class="row-2">
	<td class="column-1"><a href="https://www.commercialcafe.com/commercial-real-estate/us/tx/houston/" rel="noopener" target="_blank">Houston commercial real estate</a></td><td class="column-2"><a href="https://www.commercialcafe.com/commercial-real-estate/us/il/chicago/" rel="noopener" target="_blank">Chicago commercial real estate</a></td>
</tr>
<tr class="row-3">
	<td class="column-1"><a href="https://www.commercialcafe.com/commercial-real-estate/us/tx/dallas/" rel="noopener" target="_blank">Dallas commercial real estate</a></td><td class="column-2"><a href="https://www.commercialcafe.com/commercial-real-estate/us/ca/san-francisco/" rel="noopener" target="_blank">San Francisco commercial real estate</a></td>
</tr>
<tr class="row-4">
	<td class="column-1"><a href="https://www.commercialcafe.com/commercial-real-estate/us/tx/austin/" rel="noopener" target="_blank">Austin commercial real estate</a></td><td class="column-2"><a href="https://www.commercialcafe.com/commercial-real-estate/us/wa/seattle/" rel="noopener" target="_blank">Seattle commercial real estate</a></td>
</tr>
<tr class="row-5">
	<td class="column-1"><a href="https://www.commercialcafe.com/commercial-real-estate/us/nc/charlotte/" rel="noopener" target="_blank">Charlotte commercial real estate</a></td><td class="column-2"><a href="https://www.commercialcafe.com/commercial-real-estate/us/nv/las-vegas/" rel="noopener" target="_blank">Las Vegas commercial real estate</a></td>
</tr>
<tr class="row-6">
	<td class="column-1"><a href="https://www.commercialcafe.com/commercial-real-estate/us/ma/boston/" rel="noopener" target="_blank">Boston commercial real estate</a></td><td class="column-2"><a href="https://www.commercialcafe.com/commercial-real-estate/us/co/denver/" rel="noopener" target="_blank">Denver commercial real estate</a></td>
</tr>
<tr class="row-7">
	<td class="column-1"><a href="https://www.commercialcafe.com/commercial-real-estate/us/ga/atlanta/" rel="noopener" target="_blank">Atlanta commercial real estate</a></td><td class="column-2"><a href="https://www.commercialcafe.com/commercial-real-estate/us/dc/washington/" rel="noopener" target="_blank">Washington, D.C. commercial real estate</a></td>
</tr>
<tr class="row-8">
	<td class="column-1"><a href="https://www.commercialcafe.com/commercial-real-estate/us/fl/miami/" rel="noopener" target="_blank">Miami commercial real estate</a></td><td class="column-2"><a href="https://www.commercialcafe.com/commercial-real-estate/us/ny/brooklyn/" rel="noopener" target="_blank">Brooklyn commercial real estate</a></td>
</tr>
<tr class="row-9">
	<td class="column-1"><a href="https://www.commercialcafe.com/commercial-real-estate/us/ca/irvine/" rel="noopener" target="_blank">Irvine commercial real estate</a></td><td class="column-2"><a href="https://www.commercialcafe.com/commercial-real-estate/us/pa/philadelphia/" rel="noopener" target="_blank">Philadelphia commercial real estate</a></td>
</tr>
<tr class="row-10">
	<td class="column-1"><a href="https://www.commercialcafe.com/commercial-real-estate/us/az/phoenix/" rel="noopener" target="_blank">Phoenix commercial real estate</a></td><td class="column-2"><a href="https://www.commercialcafe.com/commercial-real-estate/us/ca/san-diego/" rel="noopener" target="_blank">San Diego commercial real estate</a></td>
</tr>
</tbody>
</table>
<!-- #tablepress-38 from cache -->
<h2>Methodology</h2>
<p><em>We compared all office properties completed from 01/01/2008 to the total completed office inventory on 12/31/2018.</em></p>
<p><em>Market Inventories are highlighted based on the number of properties shown as &#8216;Completed&#8217; and the total amount of &#8216;Office Square Feet&#8217; incorporated in those properties, excluding square footage of other uses (i.e. retail, hotel, etc.).</em></p>
<p><em>Market inventory is divided in location ratings (CBD-Primary, CBD-Secondary, Urban-Primary, Urban-Secondary, Suburban-Primary, and Suburban-Secondary).</em></p>
<p><em>Square footage parameters: at least 25,000 square feet.</em></p>
<p><em>Regional Differences feature the Office inventory of 113 Commercial Markets.</em></p>
<p><em>Data extraction date: September 2019.</em></p>
<p>Data source: CommercialEdge</p>
<p>The post <a href="https://www.commercialcafe.com/blog/top-u-s-cities-add-682-million-square-feet-of-office-space-in-10-years/">Top U.S. Cities Add 682 Million Square Feet of Office Space in 10 Years</a> appeared first on <a href="https://www.commercialcafe.com/blog">CommercialCafe</a>.</p>
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		<item>
		<title>2019 US Office Pipeline – NYC, the Bay Area and San Francisco Set to Deliver 33 MSF of Office Space</title>
		<link>https://www.commercialcafe.com/blog/2019-us-office-pipeline/</link>
		
		<dc:creator><![CDATA[Diana Sabau]]></dc:creator>
		<pubDate>Wed, 10 Apr 2019 14:26:42 +0000</pubDate>
				<category><![CDATA[Commercial Real Estate News]]></category>
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		<guid isPermaLink="false">https://www.commercialcafe.com/blog/?p=22039</guid>

					<description><![CDATA[<p><img width="1180" height="610" src="https://www.commercialcafe.com/blog/wp-content/uploads/sites/10/2017/09/shutterstock_568658566.jpg?w=1180" class="attachment-post-thumbnail size-post-thumbnail wp-post-image" alt="" decoding="async" loading="lazy" /></p>
<p><img width="1180" height="610" src="https://www.commercialcafe.com/blog/wp-content/uploads/sites/10/2017/09/shutterstock_568658566.jpg?w=1180" class="attachment-small size-small wp-post-image" alt="" style="margin-bottom:10px;" decoding="async" loading="lazy" />Since 2009, the U.S. economy has had more than 110 consecutive months of growth, making this the second longest economic expansion since the Great Depression. After a rather tepid 2017 performance, the U.S. office market gathered some steam in 2018, adding 76 million square feet of new office space and completing roughly 396 new projects &#8230;</p>
<p>The post <a href="https://www.commercialcafe.com/blog/2019-us-office-pipeline/">2019 US Office Pipeline – NYC, the Bay Area and San Francisco Set to Deliver 33 MSF of Office Space</a> appeared first on <a href="https://www.commercialcafe.com/blog">CommercialCafe</a>.</p>
]]></description>
										<content:encoded><![CDATA[<p><img width="1180" height="610" src="https://www.commercialcafe.com/blog/wp-content/uploads/sites/10/2017/09/shutterstock_568658566.jpg?w=1180" class="attachment-post-thumbnail size-post-thumbnail wp-post-image" alt="" decoding="async" loading="lazy" /></p><img width="1180" height="610" src="https://www.commercialcafe.com/blog/wp-content/uploads/sites/10/2017/09/shutterstock_568658566.jpg?w=1180" class="attachment-small size-small wp-post-image" alt="" style="margin-bottom:10px;" decoding="async" loading="lazy" /><p>Since 2009, the U.S. economy has had more than 110 consecutive months of growth, making this the second longest economic expansion since the Great Depression. After a rather tepid 2017 performance, the U.S. office market gathered some steam in 2018, adding 76 million square feet of new office space and completing roughly 396 new projects in its top 40 most active markets for office completions.</p>
<p>Using <a href="https://www.yardimatrix.com/" target="_blank" rel="noopener noreferrer">Yardi Matrix</a> data we’ve examined what 2019 may have in store for the U.S. office market. According to numbers recorded up to April 9th, on a national level 662 buildings and a whopping 115 million square feet of new office space are on track for delivery this year. While some <a href="https://www.bisnow.com/national/news/commercial-real-estate/commercial-real-estate-trends-to-dominate-in-2019-95890" target="_blank" rel="nofollow noopener noreferrer">reports</a> raise concerns about how the pace of development will be affected by tariff and trade wars, growing construction costs and labor shortages, the office sector is <a href="https://www2.colliers.com/-/media/Files/UnitedStates/National/2018/2019-State-of-the-US-Market-and-Outlook-Report-Final.ashx" target="_blank" rel="nofollow noopener noreferrer">expected to hold up</a> better than it has in earlier downturns. This is mainly due to more restrained lending practices, a more moderate pace of development and the concentration of new office properties in markets with significant job growth.</p>
<p>Keep reading for more details about the hottest markets for office development and learn about the top 10 office projects that came online in 2018 and the largest developments in the pipeline for 2019.</p>
<h2>Dallas Office Completions in 2018 Totaled 7 MSF, Second Only to NYC</h2>
<p>Developers completed roughly 8.3 million square feet of new <a href="https://www.commercialcafe.com/office/us/ny/manhattan/" target="_blank" rel="noopener">office space in Manhattan</a>, <a href="https://www.commercialcafe.com/office/us/ny/brooklyn/" target="_blank" rel="noopener">Brooklyn</a>, and <a href="https://www.commercialcafe.com/office/us/ny/queens/" target="_blank" rel="noopener">Queens</a> in 2018, increasing the city’s 520 million square foot office inventory by 2% and placing it in first place among the top 40 markets for office deliveries. <a href="https://www.commercialcafe.com/office/us/tx/dallas/" target="_blank" rel="noopener">Dallas office space</a> came in second, with 7 million square feet of new developments and 31 completed projects, and is expected to deliver 6.6 million square feet of new office space by the end of 2019. <a href="https://www.commercialcafe.com/office/us/fl/miami/" target="_blank" rel="noopener">Miami office space</a> saw a growth of 5% ―the fastest rate among the top 40 markets for office completions―as 11 projects delivered 3 million square feet of new office space in the past year.</p>
<p>Check out the list of markets with the largest number of office completions in 2018:</p>
<div class="infogram-embed" data-id="0dadbc4e-c4c2-4761-a7d1-eca1046c7150" data-type="interactive" data-title="Top 40 Markets For Office Deliveries in 2018 V2"></div>
<p><script>!function(e,t,s,i){var n="InfogramEmbeds",o=e.getElementsByTagName("script")[0],d=/^http:/.test(e.location)?"http:":"https:";if(/^\/{2}/.test(i)&&(i=d+i),window[n]&&window[n].initialized)window[n].process&&window[n].process();else if(!e.getElementById(s)){var r=e.createElement("script");r.async=1,r.id=s,r.src=i,o.parentNode.insertBefore(r,o)}}(document,0,"infogram-async","https://e.infogram.com/js/dist/embed-loader-min.js");</script></p>
<p>The 80-story <a href="https://www.commercialcafe.com/commercial-property/us/ny/new-york/3-world-trade-center/" target="_blank" rel="noopener noreferrer">3 World Trade Center</a> was completed in June and added 2.8 million square feet of new <a href="https://www.commercialcafe.com/office/us/ny/manhattan/financial-district/" target="_blank" rel="noopener">Financial District office space</a> to the New York market, earning the title of the largest office project to come online in 2018. The 1,079-foot tower, currently owned by Silverstein Properties, is the second-tallest building in the World Trade Center complex and the fifth-tallest in the city.</p>
<p>Designed by architect Richard Rogers of Rogers Stirk Harbour+Partners, the property features a series of exterior load-bearing steel frames that have allowed for spacious column-free floor plates at 3 WTC, ranging in size between 30,000 and 70,000 square feet. The building at 175 Greenwich Street sports three outdoor terraces on the 17<sup>th</sup>, 60<sup>th</sup> and 76<sup>th</sup> floors, as well as five floors of retail, including 350,000 square feet of underground retail shared with the World Trade Center Transportation Hub. The property is located near the Oculus transportation hub, with access to 12 different train lines.</p>
<p>The <a href="https://www.commercialcafe.com/office/us/ny/manhattan/downtown-manhattan/" target="_blank" rel="noopener noreferrer">Downtown Manhattan office space</a> has attracted a host of important media companies, such as Conde Nast, AP, Harper Collins, Macmillan and its anchor tenant, media-investment management giant GroupM. The company has signed a 20-year lease for 700,000 square feet in the tower’s base.</p>
<div id="attachment_22050" style="width: 647px" class="wp-caption aligncenter"><img loading="lazy" decoding="async" aria-describedby="caption-attachment-22050" class="wp-image-22050 size-full" src="https://www.commercialcafe.com/blog/wp-content/uploads/sites/10/3-WTC.jpg" alt="3 World Trade Center" width="637" height="793" /><p id="caption-attachment-22050" class="wp-caption-text">3 World Trade Center, 175 Greenwich Street, New York</p></div>
<p>The second largest delivery of 2018 was the <a href="https://www.commercialcafe.com/commercial-property/us/pa/philadelphia/comcast-technology-center/" target="_blank" rel="noopener noreferrer">Comcast Technology Center</a>, completed last August. The structure is 1,121 feet tall, when including the Art Deco lantern light blade, and increased the existing <a href="https://www.commercialcafe.com/office/us/pa/philadelphia/" target="_blank" rel="noopener noreferrer">Philadelphia office space</a> inventory by an additional 1.56 million square feet.</p>
<p>Construction on the 59-story skyscraper at 1800 Arch Street began in 2014 and has faced difficulties due to tight labor conditions, rising construction material prices due to high demand and tariffs, which ultimately resulted in $67 million cost overruns for owner Liberty Property Trust.</p>
<p>The CTC was designed to attract techies, engineers, software architects, hotel guests, and the employees of Comcast-owned NBC 10 and Telemundo 62, formerly based at the company’s Bala Cynwyd studios.</p>
<p>Tenants and guests can enjoy the creations of award-winning chef Greg Vernick at his on-site <a href="https://philly.eater.com/2018/5/23/17382628/greg-vernick-fish-four-seasons-hotel-comcast-center-philadelphia" target="_blank" rel="nofollow noopener noreferrer">Vernick Coffee Bar</a>, a ‘contemporary seafood-centered eatery.’  The restaurant is part of the grounds occupied by the Four Seasons Hotel on the 12<sup>th</sup> floor, which includes 218 rooms with 38 suites, a fitness center, spa, a lounge, and an indoor pool.</p>
<div class="infogram-embed" data-id="7f22c64e-c4c4-4121-86a1-e5c6cbf6b2b0" data-type="interactive" data-title="Top 10 Projects Completed in 2018"></div>
<p><script>!function(e,t,s,i){var n="InfogramEmbeds",o=e.getElementsByTagName("script")[0],d=/^http:/.test(e.location)?"http:":"https:";if(/^\/{2}/.test(i)&&(i=d+i),window[n]&&window[n].initialized)window[n].process&&window[n].process();else if(!e.getElementById(s)){var r=e.createElement("script");r.async=1,r.id=s,r.src=i,o.parentNode.insertBefore(r,o)}}(document,0,"infogram-async","https://e.infogram.com/js/dist/embed-loader-min.js");</script></p>
<h2>NYC 2019 Pipeline Expected to Deliver 16 MSF of New Office Space</h2>
<p><a href="https://www.commercialcafe.com/office/us/ny/new-york-city/" target="_blank" rel="nofollow noopener">New York City</a> leads the list of top 40 for office deliveries in 2019 with 46 projects currently underway that will add 16 million square feet to the market, followed by the Bay Area in second place, with 37 projects and a total of 10 million square feet of new office space.</p>
<p>Chicago’s 23 scheduled office deliveries for 2019 add up to roughly 5.6 million square feet of new space, 116% more than the amount completed in 2018, when the market’s office inventory grew by 2.6 million square feet.</p>
<p>Seattle&#8217;s expected office delivery numbers have jumped by 286%, as 26 properties totaling 6.4 million square feet of new office space should hit the market by the end of the year, according to Yardi Matrix data.</p>
<p>Six California markets have made it into our top 40 list for scheduled office completions for 2019. Between them, the Bay Area, <a href="https://www.commercialcafe.com/office/us/ca/san-francisco/" target="_blank" rel="noopener noreferrer">San Francisco</a>, <a href="https://www.commercialcafe.com/office/us/ca/los-angeles/" target="_blank" rel="noopener noreferrer">Los Angeles</a>, <a href="https://www.commercialcafe.com/office/us/ca/sacramento/" target="_blank" rel="nofollow noopener">Sacramento</a>, <a href="https://www.commercialcafe.com/office/us/ca/san-diego/" target="_blank" rel="noopener noreferrer">San Diego</a>, and <a href="https://www.commercialcafe.com/office/us/ca/orange-county/" target="_blank" rel="nofollow noopener">Orange County</a> are expected to add roughly 26 million square feet of new office space this year to their existing inventories.</p>
<p><a href="https://www.commercialcafe.com/office/us/fl/orlando/" target="_blank" rel="nofollow noopener">Orlando</a> is the only office market in Florida where the total number of properties expected to come online this year exceeds the 1 million-square-foot mark, as 7 projects are set to increase the office inventory by 1.1 million square feet.</p>
<p>Check out the full top 40 below:</p>
<div class="infogram-embed" data-id="d77db4e8-5599-4591-915c-1b8df3da3714" data-type="interactive" data-title="Top 40 Markets For Office Deliveries in 2019 V2"></div>
<p><script>!function(e,t,s,i){var n="InfogramEmbeds",o=e.getElementsByTagName("script")[0],d=/^http:/.test(e.location)?"http:":"https:";if(/^\/{2}/.test(i)&&(i=d+i),window[n]&&window[n].initialized)window[n].process&&window[n].process();else if(!e.getElementById(s)){var r=e.createElement("script");r.async=1,r.id=s,r.src=i,o.parentNode.insertBefore(r,o)}}(document,0,"infogram-async","https://e.infogram.com/js/dist/embed-loader-min.js");</script></p>
<h2>30 Hudson Yards Adds 2.6MSF of Office Space to Midtown Manhattan</h2>
<p>Apple’s new California campus has topped the list of top office completions throughout 2018 at 2.9 million square feet of <a href="https://www.commercialcafe.com/office/us/ca/santa-clara-county/cupertino/" target="_blank" rel="nofollow noopener">Cupertino office space</a>, but although several phases have been successfully completed, the building is not yet ready for occupancy.</p>
<p>Check out the 10 largest office projects to come online in 2019 below:</p>
<div class="infogram-embed" data-id="17c94a92-1827-48c2-b2a6-538db5827fbc" data-type="interactive" data-title="Top 10 Projects To Be Completed in 2019"></div>
<p><script>!function(e,t,s,i){var n="InfogramEmbeds",o=e.getElementsByTagName("script")[0],d=/^http:/.test(e.location)?"http:":"https:";if(/^\/{2}/.test(i)&&(i=d+i),window[n]&&window[n].initialized)window[n].process&&window[n].process();else if(!e.getElementById(s)){var r=e.createElement("script");r.async=1,r.id=s,r.src=i,o.parentNode.insertBefore(r,o)}}(document,0,"infogram-async","https://e.infogram.com/js/dist/embed-loader-min.js");</script></p>
<p><a href="https://www.commercialcafe.com/commercial-property/us/ny/new-york/30-hudson-yards/" target="_blank" rel="noopener noreferrer">30 Hudson Yards</a> is scheduled for completion by the end of March, adding 2.6 million square feet of new <a href="https://www.commercialcafe.com/office/us/ny/manhattan/hudson-yards/" target="_blank" rel="noopener">Hudson Yards office space</a> to the Manhattan market. Located at 500 West 33<sup>rd</sup> Street, the 90-story skyscraper developed by Related Companies and Oxford Properties Group and owned by WarnerMedia has been a magnet for top-notch tenants looking to secure a spot in the fourth tallest office tower under construction in New York City.</p>
<p>Designed by Kohn Penderson Fox, the building stands 1,296 feet tall and will have the highest observation deck in the city, suspended at 1,100 feet in the air. 30 Hudson Yards is subject to a 30-year PILOT ground lease, held by the New York City Industrial Development and expiring in June 2043.</p>
<p>Once it <a href="https://www.commercialcafe.com/blog/warnermedia-sell-30-hudson-yards-office-space-2-billion/" target="_blank" rel="noopener noreferrer">moves</a> from its previous location at Time Warner Center, WarnerMedia and its associates ― including CNN, HBO, Warner Bros. and Turner ― will occupy roughly 1.4 million square feet of the <a href="https://www.commercialcafe.com/office/us/ny/manhattan/midtown-manhattan/" target="_blank" rel="noopener noreferrer">Midtown Manhattan office space</a>. Some of the other companies that have lined up to sign leases for Hudson Yards’ tallest office tower are Norway’s largest bank, DNB ASA, with 44,000 square feet of space on the property’s top floors, Wells Fargo Securities with 500,000 square feet of office space and global investment firm KKR which will have 343,000 square feet of office space.</p>
<p><a href="https://www.commercialcafe.com/commercial-property/us/il/chicago/358-west-harrison-street/" target="_blank" rel="noopener noreferrer">The Post Office</a> in Chicago, currently owned by New York-based 601W Companies, is expected to come online by August, expanding the Windy City’s office inventory by 2.5 million square feet <a href="https://www.commercialcafe.com/office/us/il/chicago/south-loop/" target="_blank" rel="noopener">South Loop Chicago office space</a>. The present $500 million development puts an end to decades of neglect and unrealized projects that promised to breathe new life into the massive Art Deco building on 433 West Van Buren Street.</p>
<p>601W owns several other properties locally, including the <a href="https://www.commercialcafe.com/commercial-property/us/il/chicago/aon-center/" target="_blank" rel="noopener noreferrer">Aon Center</a>, <a href="https://www.commercialcafe.com/commercial-property/us/il/chicago/one-south-wacker/" target="_blank" rel="noopener noreferrer">One South Wacker</a>, <a href="https://www.commercialcafe.com/commercial-property/us/il/chicago/550-west-jackson/" target="_blank" rel="noopener noreferrer">550 West Jackson Blvd</a>, and the <a href="https://www.commercialcafe.com/commercial-property/us/il/chicago/the-sullivan-center/" target="_blank" rel="noopener noreferrer">Sullivan Center</a>, encompassing roughly 5.2 million square feet of <a href="https://www.commercialcafe.com/office/us/il/chicago/" target="_blank" rel="noopener noreferrer">Chicago office space</a> in the <a href="https://www.commercialcafe.com/office/us/il/chicago/chicago-loop/" target="_blank" rel="nofollow noopener">Chicago Loop</a> and <a href="https://www.commercialcafe.com/office/us/il/chicago/west-side-chicago/" target="_blank" rel="nofollow noopener">West Side Chicago</a> submarkets. Its plans to use the Post Office’s factory style open floor to create a flexible office space in a prime location near Union Station had gained the support of Mayor Rahm Emanuel, who went on to promote the building as a potential home for Amazon’s second headquarters. The City Council’s Finance Committee agreed to provide 601W with a Class L <a href="https://chicago.suntimes.com/news/old-post-office-gets-a-100-million-class-l-property-tax-break/" target="_blank" rel="nofollow noopener noreferrer">property tax break</a>, saving the owner roughly $100 million over the life of the project.</p>
<p>Once <a href="https://www.chicagotribune.com/business/ct-bill-davies-post-office-0514-biz-20160513-story.html" target="_blank" rel="nofollow noopener noreferrer">completed</a>, the former Post Office would have a 3-acre rooftop park, a fitness center and events space, outdoor cafes, and a grand plaza on the riverfront. The property has attracted several important tenants, penning a deal with Walgreens for 200,000 square feet of office space that will house the company’s digital, mobile, e-commerce, and IT workers, along with Walgreens’ University training program. Local confectionary Ferrara Candy will also join the Post Office’s tenant roster, as it plans to move its employees into the building by late summer 2019.</p>
<h2>Methodology</h2>
<p>We used detailed Yardi Matrix data to analyze all office projects equal to or in excess of 50,000 square feet currently under construction in the U.S., with completion dates scheduled for 2019. Our analysis, based on data recorded up until <strong>April 9th, 2019</strong>, includes office spaces in buildings that are used <em>primarily</em> for office purposes―in the case of mixed-use properties, this includes office, retail, multi-family, and other commercial use types). The New York City pipeline includes the boroughs of Manhattan, Brooklyn and Queens. Properties that include more than one building are represented in the &#8220;No. of Buildings&#8221; columns.</p>
<p>The post <a href="https://www.commercialcafe.com/blog/2019-us-office-pipeline/">2019 US Office Pipeline – NYC, the Bay Area and San Francisco Set to Deliver 33 MSF of Office Space</a> appeared first on <a href="https://www.commercialcafe.com/blog">CommercialCafe</a>.</p>
]]></content:encoded>
					
		
		
		<post-id xmlns="com-wordpress:feed-additions:1">22039</post-id>	</item>
		<item>
		<title>US Industrial Pipeline &#124; The 10 Largest Projects Coming in 2019</title>
		<link>https://www.commercialcafe.com/blog/us-industrial-pipeline-2019/</link>
		
		<dc:creator><![CDATA[Ioana Neamt]]></dc:creator>
		<pubDate>Wed, 03 Apr 2019 12:21:19 +0000</pubDate>
				<category><![CDATA[Commercial Real Estate News]]></category>
		<category><![CDATA[Development]]></category>
		<category><![CDATA[Featured]]></category>
		<category><![CDATA[Industrial]]></category>
		<category><![CDATA[Atlanta]]></category>
		<category><![CDATA[Chicago]]></category>
		<category><![CDATA[Dallas]]></category>
		<category><![CDATA[Fort Worth]]></category>
		<category><![CDATA[Houston]]></category>
		<category><![CDATA[Inland Empire]]></category>
		<category><![CDATA[Los Angeles]]></category>
		<category><![CDATA[New Jersey]]></category>
		<category><![CDATA[Philadelphia]]></category>
		<category><![CDATA[Phoenix]]></category>
		<category><![CDATA[South Carolina]]></category>
		<guid isPermaLink="false">https://www.commercialcafe.com/blog/?p=21791</guid>

					<description><![CDATA[<p><img width="1180" height="461" src="https://www.commercialcafe.com/blog/wp-content/uploads/sites/10/shutterstock_647070460_Featured-image.jpg?w=1180" class="attachment-post-thumbnail size-post-thumbnail wp-post-image" alt="" decoding="async" loading="lazy" /></p>
<p><img width="1180" height="461" src="https://www.commercialcafe.com/blog/wp-content/uploads/sites/10/shutterstock_647070460_Featured-image.jpg?w=1180" class="attachment-small size-small wp-post-image" alt="" style="margin-bottom:10px;" decoding="async" loading="lazy" />The U.S. industrial real estate market had a solid year in 2018 and has continued to strengthen through the first quarter of 2019. Industrial rents are on an upward path, while the construction pipeline is robust and development is spurred on by the e-commerce sector. In terms of development, 2019 is poised to bring continuity &#8230;</p>
<p>The post <a href="https://www.commercialcafe.com/blog/us-industrial-pipeline-2019/">US Industrial Pipeline | The 10 Largest Projects Coming in 2019</a> appeared first on <a href="https://www.commercialcafe.com/blog">CommercialCafe</a>.</p>
]]></description>
										<content:encoded><![CDATA[<p><img width="1180" height="461" src="https://www.commercialcafe.com/blog/wp-content/uploads/sites/10/shutterstock_647070460_Featured-image.jpg?w=1180" class="attachment-post-thumbnail size-post-thumbnail wp-post-image" alt="" decoding="async" loading="lazy" /></p><img width="1180" height="461" src="https://www.commercialcafe.com/blog/wp-content/uploads/sites/10/shutterstock_647070460_Featured-image.jpg?w=1180" class="attachment-small size-small wp-post-image" alt="" style="margin-bottom:10px;" decoding="async" loading="lazy" /><p>The U.S. industrial real estate market had a solid year in 2018 and has continued to strengthen through the first quarter of 2019. Industrial rents are on an upward path, while the construction pipeline is robust and development is spurred on by the e-commerce sector.</p>
<p>In terms of development, 2019 is poised to bring continuity and stability, as the total square footage scheduled for delivery by year-end is set to match the total pipeline volume of 2018. Last year, developers brought 270 projects totaling 105.7 million square feet of new industrial space to the U.S. market, while in 2019, 304 projects and 104.6 million square feet are expected to be delivered. <a href="https://www.commercialcafe.com/commercial-real-estate/us/il/chicago/" target="_blank" rel="noopener">Chicago</a>, the Inland Empire, and <a href="https://www.commercialcafe.com/commercial-real-estate/us/tx/dallas/" target="_blank" rel="noopener">Dallas</a>&#8211;<a href="https://www.commercialcafe.com/commercial-real-estate/us/tx/fort-worth/" target="_blank" rel="noopener">Fort Worth</a> are still the top three destinations for industrial construction, just as in 2018. Investors are betting big on multi-building industrial campuses, as the 10 largest projects scheduled for 2019 delivery all feature more than one building. December is likely to be the busiest month of the year, with the three largest projects scheduled for completion during the final month of 2019.</p>
<p>The table below offers more details on the 10 largest industrial projects scheduled to come online in 2019:<br />

<table id="tablepress-54" class="tablepress tablepress-id-54">
<thead>
<tr class="row-1 odd">
	<th class="column-1"><strong>Property</strong></th><th class="column-2"><strong>SqFt</strong></th><th class="column-3"><strong>City, State</strong></th><th class="column-4"><strong>Completion</strong></th><th class="column-5"><strong>Owner</strong></th>
</tr>
</thead>
<tbody class="row-hover">
<tr class="row-2 even">
	<td class="column-1">Bridge Point 78 - Phase I - Buildings 3, 5, 6, 7</td><td class="column-2">2,177,554</td><td class="column-3"><a href="https://www.commercialcafe.com/industrial/us/nj/warren-county/phillipsburg/" rel="noopener" target="_blank">Phillipsburg, NJ</a></td><td class="column-4">December</td><td class="column-5">Bridge Development Partners</td>
</tr>
<tr class="row-3 odd">
	<td class="column-1">Passport Park - Buildings 1-4</td><td class="column-2">2,019,018</td><td class="column-3"><a href="https://www.commercialcafe.com/industrial/us/tx/irving/" rel="noopener" target="_blank">Irving, TX</a></td><td class="column-4">December</td><td class="column-5">Trammell Crow</td>
</tr>
<tr class="row-4 even">
	<td class="column-1">Meridian Business Park - Phase 4 - Buildings 1-5</td><td class="column-2">1,990,880</td><td class="column-3"><a href="https://www.commercialcafe.com/industrial/us/ca/riverside/" rel="noopener" target="_blank">Riverside, CA</a></td><td class="column-4">December</td><td class="column-5">Lewis Group</td>
</tr>
<tr class="row-5 odd">
	<td class="column-1">Stateline 94 Corporate Park - Phases I-III - Buildings A-E</td><td class="column-2">1,875,950</td><td class="column-3"><a href="https://www.commercialcafe.com/industrial/us/wi/pleasant-prairie/" rel="noopener" target="_blank">Pleasant Prairie, WI</a></td><td class="column-4">October &amp; November</td><td class="column-5">Venture One Real Estate</td>
</tr>
<tr class="row-6 even">
	<td class="column-1">Alliance Northport - Buildings 1 &amp; 3</td><td class="column-2">1,715,081</td><td class="column-3"><a href="https://www.commercialcafe.com/industrial/us/tx/roanoke/" rel="noopener" target="_blank">Roanoke, TX</a></td><td class="column-4">March &amp; December</td><td class="column-5">Hillwood</td>
</tr>
<tr class="row-7 odd">
	<td class="column-1">Prologis Eucalyptus Industrial Park - Buildings 1-4</td><td class="column-2">1,465,184</td><td class="column-3"><a href="https://www.commercialcafe.com/industrial/us/ca/moreno-valley/" rel="noopener" target="_blank">Moreno Valley, CA</a></td><td class="column-4">February</td><td class="column-5">Prologis</td>
</tr>
<tr class="row-8 even">
	<td class="column-1">Park 100 Logistics Center - Buildings A &amp; B</td><td class="column-2">1,460,160</td><td class="column-3"><a href="https://www.commercialcafe.com/industrial/us/pa/lehigh-county/allentown/" rel="noopener" target="_blank">Allentown, PA</a></td><td class="column-4">March &amp; April</td><td class="column-5">Ridgeline Property Group</td>
</tr>
<tr class="row-9 odd">
	<td class="column-1">Gateway Logistics Center - Buildings 1-5</td><td class="column-2">1,414,272</td><td class="column-3">Irving, TX</td><td class="column-4">February</td><td class="column-5">Bandera Ventures</td>
</tr>
<tr class="row-10 even">
	<td class="column-1">Interchange 55 Logistics Park - Buildings A &amp; B</td><td class="column-2">1,341,860</td><td class="column-3"><a href="https://www.commercialcafe.com/industrial/us/il/romeoville/" rel="noopener" target="_blank">Romeoville, IL</a></td><td class="column-4">April &amp; May</td><td class="column-5">CT Realty</td>
</tr>
<tr class="row-11 odd">
	<td class="column-1">Colony Commerce Center - Phase I - Buildings A &amp; B</td><td class="column-2">1,264,102</td><td class="column-3"><a href="https://www.commercialcafe.com/industrial/us/ca/ontario/" rel="noopener" target="_blank">Ontario, CA</a></td><td class="column-4">July</td><td class="column-5">Ivanhoe Cambridge</td>
</tr>
</tbody>
</table>

<p>The largest industrial project set to come online this year is Phase I of Bridge Point 78, namely buildings 3, 5, 6, and 7, in <a href="https://www.commercialcafe.com/commercial-real-estate/us/nj/warren-county/phillipsburg/" target="_blank" rel="noopener">Phillipsburg, N.J.</a> With a delivery date scheduled for December 2019, the project spearheaded by Bridge Development Partners will feature close to 2.2 million square feet of industrial space. The massive property was once known as Commerce Park and served as the home of Ingersoll-Rand. Bridge Development Partners purchased the 365-acre site in 2018 for $43 million, according to <em><a href="https://www.lehighvalleylive.com/warren-county/2018/08/3_big_phillipsburg_projects.html" target="_blank" rel="nofollow noopener noreferrer">Lehigh Valley Live</a></em>. The former Ingersoll-Rand property <a href="http://www.lvb.com/article/20181010/LVB01/181019985/officials-mark-start-of-construction-for-bridge-point-78" target="_blank" rel="nofollow noopener noreferrer">reportedly</a> used to employ more than 4,000 workers, but the manufacturing plant then sat vacant for decades, impacting the economy and workforce in both Phillipsburg and neighboring Lopatcong, N.J. Now the site will be revitalized with the help of Bridge Development and CBRE, which is in charge of marketing the property to prospective tenants.</p>
<p>The only other industrial project to feature more than 2 million square feet is also scheduled for completion in December 2019. Buildings 1-4 within the Passport Park campus are currently underway in <a href="https://www.commercialcafe.com/commercial-real-estate/us/tx/irving/" target="_blank" rel="noopener noreferrer">Irving, Texas</a>, with Trammell Crow at the helm. The Passport Business Park, or PBP, is a 598-acre mixed-use development district located at the sound end of the DFW International Airport, right at the heart of the metroplex, as described in the official development plan. The eastern portion of the site will be used for industrial purposes, while the portion west of Passport Boulevard will include a combination of office, research, hospitality, restaurant, and retail space.</p>
<p>All the 10 projects featured on our list are all part of a larger campus, instead of stand-alone industrial buildings, and total a combined 16.7 million square feet of new industrial space. By comparison, the 10 largest projects of 2018 totaled 14 million square feet, and the largest one — 3290 Volvo Car Drive in <a href="https://www.commercialcafe.com/commercial-real-estate/us/sc/ridgeville/" target="_blank" rel="noopener">Ridgeville, S.C.</a> — featured 1.7 million square feet. However, looking at the total pipeline numbers, 2019 marks a slight decrease in the total square footage scheduled to be delivered. In 2018, a total of 270 buildings featuring 106 million square feet of industrial space were brought to market, while in 2019 304 new buildings and 104.5 million square feet are underway.</p>
<h2 id="tablepress-55-name" class="tablepress-table-name tablepress-table-name-id-55">Top 10 Industrial Projects Completed in 2018</h2>

<table id="tablepress-55" class="tablepress tablepress-id-55" aria-labelledby="tablepress-55-name">
<thead>
<tr class="row-1 odd">
	<th class="column-1"><strong>Property</strong></th><th class="column-2"><strong>Sq Ft</strong></th><th class="column-3"><strong>City, State</strong></th><th class="column-4"><strong>Completion</strong></th><th class="column-5"><strong>Owner</strong></th>
</tr>
</thead>
<tbody class="row-hover">
<tr class="row-2 even">
	<td class="column-1">3290 Volvo Car Drive</td><td class="column-2">1,699,168</td><td class="column-3"><a href="https://www.commercialcafe.com/industrial/us/sc/ridgeville/" rel="noopener" target="_blank">Ridgeville, SC</a></td><td class="column-4">June</td><td class="column-5">Volvo Cars of North America</td>
</tr>
<tr class="row-3 odd">
	<td class="column-1">Lambert Farms Logistics Park - Building B</td><td class="column-2">1,555,200</td><td class="column-3"><a href="https://www.commercialcafe.com/industrial/us/ga/mcdonough/" rel="noopener" target="_blank">McDonough, GA</a></td><td class="column-4">July</td><td class="column-5">CBRE Global Investors</td>
</tr>
<tr class="row-4 even">
	<td class="column-1">Interchange Distribution Center</td><td class="column-2">1,532,960	</td><td class="column-3"><a href="https://www.commercialcafe.com/industrial/us/tx/desoto/" rel="noopener" target="_blank">DeSoto, TX</a></td><td class="column-4">June</td><td class="column-5">Kohler</td>
</tr>
<tr class="row-5 odd">
	<td class="column-1">Morgan Business Center 400</td><td class="column-2">1,435,750</td><td class="column-3"><a href="https://www.commercialcafe.com/industrial/us/ga/bloomingdale/" rel="noopener" target="_blank">Bloomingdale, GA</a></td><td class="column-4">February</td><td class="column-5">Duke Realty</td>
</tr>
<tr class="row-6 even">
	<td class="column-1">Majestic Chino Gateway - Building 1</td><td class="column-2">1,412,000</td><td class="column-3"><a href="https://www.commercialcafe.com/industrial/us/ca/chino/" rel="noopener" target="_blank">Chino, CA</a></td><td class="column-4">October</td><td class="column-5">Majestic Realty</td>
</tr>
<tr class="row-7 odd">
	<td class="column-1">First Nandina Logistics Center</td><td class="column-2">1,387,899</td><td class="column-3"><a href="https://www.commercialcafe.com/commercial-real-estate/us/ca/moreno-valley/" rel="noopener" target="_blank">Moreno Valley, CA</a></td><td class="column-4">September</td><td class="column-5">First Industrial Realty Trust</td>
</tr>
<tr class="row-8 even">
	<td class="column-1">Cranbury Logistics Center - Building 1</td><td class="column-2">1,346,138</td><td class="column-3"><a href="https://www.commercialcafe.com/industrial/us/nj/middlesex-county/cranbury/" rel="noopener" target="_blank">Cranbury, NJ</a></td><td class="column-4">June</td><td class="column-5">Clarion Partners</td>
</tr>
<tr class="row-9 odd">
	<td class="column-1">Mercedes Sprinter Plant</td><td class="column-2">1,279,680</td><td class="column-3"><a href="https://www.commercialcafe.com/industrial/us/sc/ladson/" rel="noopener" target="_blank">Ladson, SC</a></td><td class="column-4">September</td><td class="column-5">Mercedes-Benz</td>
</tr>
<tr class="row-10 even">
	<td class="column-1">Laraway Crossing Business Park - IKEA Distribution Center</td><td class="column-2">1,250,481</td><td class="column-3"><a href="https://www.commercialcafe.com/industrial/us/il/joliet/" rel="noopener" target="_blank">Joliet, IL</a></td><td class="column-4">April</td><td class="column-5">IKEA</td>
</tr>
<tr class="row-11 odd">
	<td class="column-1">Arlington Logistics Center</td><td class="column-2">1,250,000</td><td class="column-3"><a href="https://www.commercialcafe.com/industrial/us/tx/arlington/" rel="noopener" target="_blank">Arlington, TX</a></td><td class="column-4">December</td><td class="column-5">NorthPoint Development</td>
</tr>
</tbody>
</table>

<p>The most active market in terms of industrial development during 2019 is set to be Inland Empire, with 74 projects totaling close to 19.8 million square feet of space scheduled for delivery by the end of the year. The Empire will strike back this year, after topping the list of active industrial markets in 2018, as well, with more than 22 million square feet delivered last year.</p>
<p>Chicago is also set to keep busy during 2019, as 63 industrial developments featuring a total of 17.9 million square feet are scheduled for delivery by year-end, followed closely by DFW, with 17.8 developments on track for delivery this year. Check out the full list below:</p>

<table id="tablepress-56" class="tablepress tablepress-id-56">
<thead>
<tr class="row-1 odd">
	<th class="column-1"><strong>#</strong></th><th class="column-2"><strong>Market</strong></th><th class="column-3"><strong>Deliveries in 2019 (total sqft)</strong></th><th class="column-4"><strong>Deliveries in 2019 (no. of buildings)</strong></th>
</tr>
</thead>
<tbody class="row-hover">
<tr class="row-2 even">
	<td class="column-1">1</td><td class="column-2">Inland Empire</td><td class="column-3">19,727,759</td><td class="column-4">74</td>
</tr>
<tr class="row-3 odd">
	<td class="column-1">2</td><td class="column-2"><a href="https://www.commercialcafe.com/industrial/us/il/chicago/" rel="noopener" target="_blank">Chicago</a></td><td class="column-3">17,948,020</td><td class="column-4">63</td>
</tr>
<tr class="row-4 even">
	<td class="column-1">3</td><td class="column-2"><a href="https://www.commercialcafe.com/industrial/us/tx/dallas/" rel="noopener" target="_blank">Dallas</a> - <a href="https://www.commercialcafe.com/industrial/us/tx/fort-worth/" rel="noopener" target="_blank">Fort Worth</a></td><td class="column-3">17,816,729</td><td class="column-4">57</td>
</tr>
<tr class="row-5 odd">
	<td class="column-1">4</td><td class="column-2"><a href="https://www.commercialcafe.com/industrial/us/nj/" rel="noopener" target="_blank">New Jersey</a></td><td class="column-3">10,493,939</td><td class="column-4">23</td>
</tr>
<tr class="row-6 even">
	<td class="column-1">5</td><td class="column-2"><a href="https://www.commercialcafe.com/industrial/us/sc/" rel="noopener" target="_blank">South Carolina</a></td><td class="column-3">7,122,940</td><td class="column-4">17</td>
</tr>
<tr class="row-7 odd">
	<td class="column-1">6</td><td class="column-2"><a href="https://www.commercialcafe.com/industrial/us/az/phoenix/" rel="noopener" target="_blank">Phoenix</a></td><td class="column-3">6,549,272</td><td class="column-4">34</td>
</tr>
<tr class="row-8 even">
	<td class="column-1">7</td><td class="column-2"><a href="https://www.commercialcafe.com/industrial/us/tx/houston/" rel="noopener" target="_blank">Houston</a></td><td class="column-3">5,877,009</td><td class="column-4">27</td>
</tr>
<tr class="row-9 odd">
	<td class="column-1">8</td><td class="column-2"><a href="https://www.commercialcafe.com/industrial/us/ga/atlanta/" rel="noopener" target="_blank">Atlanta</a></td><td class="column-3">4,683,276	</td><td class="column-4">9</td>
</tr>
<tr class="row-10 even">
	<td class="column-1">9</td><td class="column-2"><a href="https://www.commercialcafe.com/industrial/us/ca/los-angeles/" rel="noopener" target="_blank">Los Angeles</a></td><td class="column-3">3,809,339	</td><td class="column-4">19</td>
</tr>
<tr class="row-11 odd">
	<td class="column-1">10</td><td class="column-2"><a href="https://www.commercialcafe.com/industrial/us/pa/philadelphia/" rel="noopener" target="_blank">Philadelphia</a></td><td class="column-3">2,662,130	</td><td class="column-4">9</td>
</tr>
</tbody>
</table>

<h2>Methodology</h2>
<p>Data source: Yardi Matrix, extracted March 6th, 2019.</p>
<p>Our analysis included industrial properties featuring at least 90,000 square feet, reflecting the total square footage of the property — in the case of mixed-use assets, this includes office, retail, multifamily, and other commercial use types.</p>
<p>We included industrial properties delivered in 2018 and properties under construction/scheduled for delivery in 2019.</p>
<p>Properties that are being delivered within the same campus highlight the total square footage for all the new buildings.</p>
<p>Some projects include more than one building. The &#8216;No. of Buildings&#8217; column from the properties tables reflect the total number of buildings included in all properties.</p>
<p>The post <a href="https://www.commercialcafe.com/blog/us-industrial-pipeline-2019/">US Industrial Pipeline | The 10 Largest Projects Coming in 2019</a> appeared first on <a href="https://www.commercialcafe.com/blog">CommercialCafe</a>.</p>
]]></content:encoded>
					
		
		
		<post-id xmlns="com-wordpress:feed-additions:1">21791</post-id>	</item>
		<item>
		<title>Top 50 US Office Sales Of 2018: Google Sees Bicoastal Growth</title>
		<link>https://www.commercialcafe.com/blog/top-50-us-office-deals-of-2018/</link>
		
		<dc:creator><![CDATA[Ioana Ginsac]]></dc:creator>
		<pubDate>Thu, 21 Feb 2019 15:00:20 +0000</pubDate>
				<category><![CDATA[Commercial Real Estate News]]></category>
		<category><![CDATA[Deals]]></category>
		<category><![CDATA[Featured]]></category>
		<category><![CDATA[Market Reports]]></category>
		<category><![CDATA[Office]]></category>
		<category><![CDATA[Bay Area]]></category>
		<category><![CDATA[Boston]]></category>
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		<category><![CDATA[Dallas]]></category>
		<category><![CDATA[Denver]]></category>
		<category><![CDATA[Greenville]]></category>
		<category><![CDATA[Houston]]></category>
		<category><![CDATA[Los Angeles]]></category>
		<category><![CDATA[Minneapolis - St. Paul]]></category>
		<category><![CDATA[Minneapolis MN]]></category>
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		<category><![CDATA[New York City]]></category>
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		<guid isPermaLink="false">https://www.commercialcafe.com/blog/?p=21143</guid>

					<description><![CDATA[<p><img width="1024" height="674" src="https://www.commercialcafe.com/blog/wp-content/uploads/sites/10/2017/02/shutterstock_cover1024x674.jpg?w=1024" class="attachment-post-thumbnail size-post-thumbnail wp-post-image" alt="ofice buildings glass facade soaring towards the sky blue with patches of white clouds" decoding="async" loading="lazy" /></p>
<p><img width="1024" height="674" src="https://www.commercialcafe.com/blog/wp-content/uploads/sites/10/2017/02/shutterstock_cover1024x674.jpg?w=1024" class="attachment-small size-small wp-post-image" alt="ofice buildings glass facade soaring towards the sky blue with patches of white clouds" style="margin-bottom:10px;" decoding="async" loading="lazy" />$24 billion worth of assets changed hands in the top 50 biggest office deals to close in 2018. Google, Disney, Samsung mingled with established top CRE players. Check out the full list and read up on last year's most notable U.S. office investments.</p>
<p>The post <a href="https://www.commercialcafe.com/blog/top-50-us-office-deals-of-2018/">Top 50 US Office Sales Of 2018: Google Sees Bicoastal Growth</a> appeared first on <a href="https://www.commercialcafe.com/blog">CommercialCafe</a>.</p>
]]></description>
										<content:encoded><![CDATA[<p><img width="1024" height="674" src="https://www.commercialcafe.com/blog/wp-content/uploads/sites/10/2017/02/shutterstock_cover1024x674.jpg?w=1024" class="attachment-post-thumbnail size-post-thumbnail wp-post-image" alt="ofice buildings glass facade soaring towards the sky blue with patches of white clouds" decoding="async" loading="lazy" /></p><img width="1024" height="674" src="https://www.commercialcafe.com/blog/wp-content/uploads/sites/10/2017/02/shutterstock_cover1024x674.jpg?w=1024" class="attachment-small size-small wp-post-image" alt="ofice buildings glass facade soaring towards the sky blue with patches of white clouds" style="margin-bottom:10px;" decoding="async" loading="lazy" /><p>Looking at the 50 largest office sales to close during 2018 across the country, we found an interesting mix of investors. In addition to the established CRE players, the list of buyers and sellers of top-priced U.S. real estate also features names like Google, Disney, and Samsung.</p>
<p>Two high-profile acquisitions made by the company behind the world’s favorite internet search engine amounted to roughly $3.4 billion and ranked first and third in our top 50. Google’s expansion across the U.S. continues, as the company recently announced plans to invest an additional $13 billion this year in data centers and offices nationwide.</p>
<p>In July 2018, The Walt Disney Company paid upwards of $600 million for the rights to develop a Trinity Church-owned <a title="find office space in Hudson Square" href="https://www.commercialcafe.com/office/us/ny/manhattan/hudson-square/" target="_blank" rel="noopener noreferrer">site in Hudson Square</a>, Lower Manhattan. The deal <a href="https://therealdeal.com/2018/07/09/abc-buying-massive-hudson-square-site-for-650m/" target="_blank" rel="nofollow noopener noreferrer">offered</a> 1.2 million buildable square feet for 99 years, and it is where Disney plans to consolidate most of its New York operations, including offices and production spaces.</p>
<p>Check out the full list in the table below and read on for more on the 2018 top 50 U.S. office sales roundup.</p>
<div class="infogram-embed" data-id="b6f10e19-e07b-4784-a6c2-8433c5c491f4" data-type="interactive" data-title="Top 50 Office Deals of 2018"></div>
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<h2>Google Tops Office Sales on Both Coasts</h2>
<div id="attachment_21195" style="width: 385px" class="wp-caption alignright"><a href="https://www.commercialcafe.com/blog/wp-content/uploads/sites/10/YM_ChelseaMarket_NYC.jpg" rel='prettyPhoto' data-rel="lightbox-image-0" data-rl_title="" data-rl_caption="" title=""><img loading="lazy" decoding="async" aria-describedby="caption-attachment-21195" class="size-medium wp-image-21195" src="https://www.commercialcafe.com/blog/wp-content/uploads/sites/10/YM_ChelseaMarket_NYC-375x300.jpg" alt="Chelsea Market building at 75 9th Ave, Chelsea, Midtown, Manhattan, New York CIty" width="375" height="300" /></a><p id="caption-attachment-21195" class="wp-caption-text"><em>Chelsea Market, 75 9th Ave, New York City</em></p></div>
<p>Technology giant Google wrapped the largest deals of the year in both New York and California. Closing at $2.4 billion, the acquisition of the Chelsea Market building topped all other U.S. office sales in 2018.</p>
<p>This 1.1 million square feet of <u><a href="https://www.commercialcafe.com/office/us/ny/manhattan/midtown-manhattan/">office space in Midtown Manhattan</a></u> is just a part of Google’s growing presence in the city. The company has occupied space in the Chelsea building since 2008 and <u><a href="https://www.businessinsider.com/google-new-york-chelsea-market-real-estate-expansion-2018-11">reportedly</a></u> plans to add 300,000 more square feet to the property. Google also owns its massive 2.9 million-square-foot NYC headquarters at 111 8<sup>th</sup> Ave. – across the street from its latest acquisition – and <u><a href="https://www.wsj.com/articles/google-plans-large-new-york-city-expansion-1541636579">leases</a></u> a combined total of 880,000 square feet at Pier 57 and at 85 57th Ave. According to the <em>Wall Street Journal</em>, Google is also in talks with Oxford Property Group to either lease or buy its planned 1.3 million-square-foot St. John’s Terminal <u><a href="https://www.commercialcafe.com/office/us/ny/manhattan/west-village/">office development in the West Village</a></u>, which is scheduled for completion in 2022.</p>
<p>In November, Google forked over another billion dollars to close on HCP’s Britannia Shoreline Technology Park in Mountain View, a deal that landed third in our nationwide top 50. The acquisition of the 52-acre, 12-building property marked California’s largest office sale in 2018, and considerably expanded the company’s core campus area. Shoreline is located a few blocks east of the Googleplex headquarters and across the street from the site where Google is working on its <u><a href="https://www.bizjournals.com/sanjose/news/2018/11/20/google-charleston-east-campus-mountain-view-goog.html">dome campus</a></u>.</p>
<h2>2018 Foreign Office Investment Mostly From Canada, Europe</h2>
<div id="attachment_21199" style="width: 250px" class="wp-caption alignright"><a href="https://www.commercialcafe.com/blog/wp-content/uploads/sites/10/YM_666_fifth_ave.jpg" rel='prettyPhoto' data-rel="lightbox-image-1" data-rl_title="" data-rl_caption="" title=""><img loading="lazy" decoding="async" aria-describedby="caption-attachment-21199" class="size-medium wp-image-21199" src="https://www.commercialcafe.com/blog/wp-content/uploads/sites/10/YM_666_fifth_ave-240x300.jpg" alt="666 fifth avenue office building, central midtown, manhattan" width="240" height="300" /></a><p id="caption-attachment-21199" class="wp-caption-text"><em>666 Fifth Avenue, Manhattan</em></p></div>
<p>In the second-largest office sale to close in 2018, <strong>Toronto</strong>-based Brookfield assumed control of Kushner Cos.’ office tower at 666 Fifth Ave., in a 99-year 100% leasehold, with an upfront payment of nearly $1.3 billion. Brookfield took up operations at the property and <u><a href="https://www.wsj.com/articles/kushner-family-close-to-deal-to-unload-666-fifth-avenue-1533322813">is set</a></u> to build on the tower’s prime location and invest north of $600 million in a redevelopment and upgrade program. The Canadian investment company <u><a href="https://www.chicagobusiness.com/article/20180226/CRED03/180229924/brookfield-buying-loop-office-building">returned</a></u> to the core of Chicago in 2018 with several purchases, one of which made the top 50 deals of the year: the $305 million acquisition of the full-block, 1.4 million-square-foot office property at 175 West Jackson Boulevard.</p>
<p>Canada Pension Plan Investment Board (CPPIB) partnered with Boston Properties and bought the Santa Monica Business Park for $628 million. The 41-acre, 21 building office property encompasses roughly 1.2 million square feet, and was <u><a href="http://www.cppib.com/en/public-media/headlines/2018/boston-properties-and-cppib-complete-acquisition-santa-monica-business-park-california/">94% leased</a></u> at the time of sale.</p>
<div id="attachment_21201" style="width: 250px" class="wp-caption alignright"><a href="https://www.commercialcafe.com/blog/wp-content/uploads/sites/10/YM_53_state_street_boston_01.jpg" rel='prettyPhoto' data-rel="lightbox-image-2" data-rl_title="" data-rl_caption="" title=""><img loading="lazy" decoding="async" aria-describedby="caption-attachment-21201" class="size-medium wp-image-21201" src="https://www.commercialcafe.com/blog/wp-content/uploads/sites/10/YM_53_state_street_boston_01-240x300.jpg" alt="Exchange Place office tower at 53 State Street Downtown Financial District Boston" width="240" height="300" /></a><p id="caption-attachment-21201" class="wp-caption-text"><em>Exchange Place, 53 State St., Boston</em></p></div>
<p>Two of the top 50 office buys of 2018 were made by <strong>German </strong>firms. In June, Commerzbank <u><a href="https://www.bisnow.com/new-york/news/commercial-real-estate/commerz-real-closes-on-midtown-east-office-tower-for-3325m-88975">paid</a></u> $333 million for Columbia Property Trust’s office tower at 222 East 42st St., in Manhattan. In December, Allianz Real Estate completed the purchase of one of the most prominent <a href="https://www.commercialcafe.com/office/us/ma/boston/" target="_blank" rel="noopener noreferrer">office properties in Boston</a> in joint venture with Massachusetts Pension Reserves Investment Management Board (PRIM) and Beacon Capital Partners. The 1.1 million-square-foot office tower at 53 State St., commanded $845 million and landed fifth on our list.</p>
<p><strong>Oslo-based</strong> Norges Bank Real Estate Management was also notably active on the Boston office market last year. The Norwegian firm spent $291 million on a 49.9% stake in the 501 Boylston St. <u><a href="https://www.commercialcafe.com/office/us/ma/boston/back-bay/">Back Bay office property</a></u> also known as The Newbry, and <u><a href="http://www.aracapital.com/news-media-detail/ara-and-norges-bank-real-estate-management-acquire">partnered</a></u> with American Realty Advisors for the $455 million purchase of 121 Seaport, a trophy office property recently developed by Skanska in the desirable Seaport neighborhood.</p>
<p>Ponte Gadea, investment arm of <strong>Spanish</strong> billionaire Amancio Ortega, grabbed some prime <a href="https://www.commercialcafe.com/office/us/dc/washington/downtown-washington/">Washington D.C., central business district office space</a> in December. The Investment Building, a trophy office property located at the corner of K and 15th streets, was sold by a <a href="https://www.globest.com/2018/12/27/jbg-smith-sells-cbd-office-for-385m/">joint venture</a> of J.P. Morgan Asset Management and JBG Smith for $385 million. According to <em>Globe Street</em>, the 1923 property had last been renovated in 2001 and was at nearly full occupancy at the time of this latest sale.</p>
<div id="attachment_21203" style="width: 385px" class="wp-caption alignright"><a href="https://www.commercialcafe.com/blog/wp-content/uploads/sites/10/YM_Washington_Harbor_3000_k_street_georgetown_washington_dc.jpg" rel='prettyPhoto' data-rel="lightbox-image-3" data-rl_title="" data-rl_caption="" title=""><img loading="lazy" decoding="async" aria-describedby="caption-attachment-21203" class="size-medium wp-image-21203" src="https://www.commercialcafe.com/blog/wp-content/uploads/sites/10/YM_Washington_Harbor_3000_k_street_georgetown_washington_dc-375x300.jpg" alt="Washington Harbour at 3000 K Street NW, Georgetown, Northwest Washington D.C." width="375" height="300" /></a><p id="caption-attachment-21203" class="wp-caption-text"><em>Washington Harbour, 3000 K Street NW</em></p></div>
<p>The Washington D.C., office market also attracted the interest of <strong>Global Holdings Group</strong>. The international real estate holding conglomerate led by Eyal Ofer paid $415 million for Washington Harbour, a distinctive Georgetown mixed-use property that is <a href="https://www.globest.com/2018/07/31/global-holdings-closes-415m-washington-harbour-deal/">reportedly</a> one of very few institutional-quality office buildings located on the water in the district.</p>
<p><strong>U.K.-based</strong> TH Real Estate – <a href="https://www.spglobal.com/marketintelligence/en/news-insights/trending/5Cwh-BM32DfsQnK82O3d4A2">recently rebranded</a> as Nuveen Real Estate – partnered with local developer Taconic Investment Partners for the $269 million purchase of Far West Side Manhattan office high-rise at 440 Ninth St., <a href="https://commercialobserver.com/2018/12/unizo-holdings-sale-440-ninth-avenue-taconic-investment-partners-th-real-estate/">banking</a> on the property’s proximity to the Hudson Yards redevelopment and the revitalized Penn Plaza subdistrict.</p>
<h2>HNA Group Continues Shedding U.S. Office Assets</h2>
<div id="attachment_21205" style="width: 250px" class="wp-caption alignright"><a href="https://www.commercialcafe.com/blog/wp-content/uploads/sites/10/YM_33_South_Sixth_Street_City_Center_Minneapolis.jpg" rel='prettyPhoto' data-rel="lightbox-image-4" data-rl_title="" data-rl_caption="" title=""><img loading="lazy" decoding="async" aria-describedby="caption-attachment-21205" class="size-medium wp-image-21205" src="https://www.commercialcafe.com/blog/wp-content/uploads/sites/10/YM_33_South_Sixth_Street_City_Center_Minneapolis-240x300.jpg" alt="33 South Sixth office tower and City Center retail complex, Downtown West Minneapolis" width="240" height="300" /></a><p id="caption-attachment-21205" class="wp-caption-text"><em>33 South Sixth and City Center complex, Minneapolis</em></p></div>
<p>The only Asian buyer on our 2018 top 50 office sales list was <strong>South Korea</strong>-based Samsung, which paid $320 million for HNA’s 33 South Sixth St. City Center office and retail complex in downtown Minneapolis. Minnesota-based Target Corp., occupies roughly 70% of the property, which was <a href="https://www.mingtiandi.com/real-estate/outbound-investment/hna-sells-minneapolis-city-center-complex-to-samsung-sra-for-320m/">reportedly</a> 90% leased at the time of this sale.</p>
<p>While in 2017 HNA was still splurging on office towers, the Chinese company was only present on the sellers’ side in 2018. In May, HNA unloaded a San Francisco office tower it had bought in 2016 for $255 million—123 Mission St., was purchased for $290 million by Northwood Investors. The firm, led by former Blackstone executive John Kukral, also put up $305 million last year to close on the boutique office building at 1180 Avenue of the Americas. In 2011, HNA paid $259 million for a 90% stake in the property, with MHP as a minority partner.</p>
<p>According to <em><a href="https://www.bloomberg.com/news/articles/2018-05-29/hna-is-said-to-sell-san-francisco-tower-to-northwood-investors">Bloomberg, </a></em>at the time HNA had been selling property at a profit, keeping the Chinese giant afloat in a deep sea of debt troubles. The company continues to offload U.S. office assets it accrued during its seemingly bottomless buying spree. Last month, it <a href="https://www.bisnow.com/new-york/news/capital-markets/850-third-ave-96475">sold</a> its 850 Third Ave., majority stake to Jacob Chetrit and his sons, Michael and Simon. Though the price was not disclosed at the time the sale was reported, <em>Bisnow</em> sources indicated that the stake traded for $422 million, which would be a loss for HNA, as the 2016 purchase price was $463 million.</p>
<h2>Methodology</h2>
<p><em>We used Yardi Matrix data to analyze all <strong>transactions recorded up until February 18th, 2019</strong> of office buildings equal to or in excess of 50,000 square feet. In the case of mixed-use assets, only properties featuring more than 50% office space were included in the analysis. We counted portfolio deals as single transactions and only analyzed portfolio sales of buildings that were part of the same campus or property, and that shared the same transaction terms. Distressed sales were excluded altogether.</em></p>
<p><em>Property images courtesy of Yardi Matrix.</em></p>
<p>The post <a href="https://www.commercialcafe.com/blog/top-50-us-office-deals-of-2018/">Top 50 US Office Sales Of 2018: Google Sees Bicoastal Growth</a> appeared first on <a href="https://www.commercialcafe.com/blog">CommercialCafe</a>.</p>
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