Commercial Real Estate – The Week in Review
October 5-11, 2013
It has been a busy week in commercial real estate as CERRON takes a look at the week in review…
Office Spaces & Demands are Changing, according to an article by Costar this week. With a review of the many class A office buildings across the nation, “the increasing age and relative inefficiency of these properties present big challenges and risks for owners and investors as businesses increasingly re-evaluate and re-engineer their office requirements to meet leaner 21st-century workplace needs,” according to Drummer (October 8, 2013) in his Costar Article. With an increase in the amount of technology used to run businesses, a reduction is being seen for the amount of space needed in this sector. Tech firms and call centers are increasing in demand and present an opportunity for owners to market to these potential users.
Developers turn to office space to meet the needs of lodging, according to Melvin Backman at Wall Street Journal, September 24, 2013. As the need for lodging increases, developers are getting creative and turning to office space as a resource to meet this growing need. Examples of this type of space conversion are being seen across the nation. “By converting buildings to hotels, owners hope the buildings will produce higher incomes and better returns on their investments.”
Third quarter data show continuing improvement in the CRE lending market, with banks increasing their exposure in secondary and tertiary markets, according to Eric Hawthorn for Llenrock Blog, October 11, 2013, as originally reported via REIT.com.
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