ABT Executive Suites have announced that they have agreed a a 27,000+ square-foot lease with the Millennium Centre in Dallas. ABT Executive Suites, is one of the leading executive suites companies in the US, featuring 10 business centers in Dallas. The company offer high grade AAA office space to corporates and new companies looking for a flexible and affordable office space solution.
The volume of empty office space in Toronto and Calgary is likely to drive down rental rates in the next few years. In Toronto there is an expected 4.7 million sq ft of office space that will become available in the next two years. Three new office towers will make up a substantial part of this space. In Calgary there is expected to be 5.2 million sq ft of available space. However despite all the additional office space on the market, commercial property companies have noted that the current glut is not as bad as in the early 1990’s
Are you looking for commercial real estate, office space, a business center or executive suites? Commercial Real Estate is one of the most popular search terms in the commercial property sector. Because of the size of the commercial real estate sector with realtors and real estate companies, many searchers query “commercial real estate” when looking for office space. However, not all of them know exactly what they want – or are unaware of the other options on offer.
Demand for office space in Calgary has been weak in recent times, making it very difficult for landlords and agents to secure new lettings. In fact commercial property agents now believe that the office space vacancy rate in Calgary could jump over 20% in the next two years. Much of the reasoning behind this belief is the fact that there has been several schemes under construction in areas such as Bow tower and Eighth Avenue Place.
In the third quarter of this year the office space vacancy rate in Toronto increased from 9.1% to 8.4%. This increase in closely aligned with the increase in unemployment which still blights the office space market. And the situation is likely to get worse before its gets better; vacancies are set to hit over and above 10% in Q4 of 2009. That’s because the 780,000-square-foot Telus Tower near Union Station will be opened, adding extra stock to the market. Extra office space in a prime area, with higher than average unemployment means that the commercial real estate market will only ever move in a negative direction.
Dallas has in recent times become a more affordable area to rent office space. And with prices in the commercial real estate market set to fall further, the area is set to continue to be seen as offering great value for tenants. Of the 31 major cities compared by office space experts JLL, Dallas was ranked 21st out of a list of 34.
With the collapse on Lehman Bros, the office space market in London started to capitulate. Since then rents and prices have fallen massively. In 2009, the biggest deal in the City of London is 2009 was that of Nomura, who leased 541,000 square feet. The company signed a 20 year lease at Watermark Place building owned by UBS AG’s UBS Global Asset Management and Oxford Properties, a unit of Ontario Municipal Employees Retirement System. Nomura will pay $67 per square foot for the office space. Interestingly they received a rent free period of over four years – demonstrating just how desperate landlords are to get large requirements on ther books. Many people in the commercial real estate industry must think that this maybe the last major office deal with such a generous incentive.
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For class A office space the prices range from $16 to $22 per sq ft in downtown areas and $17 to $24 per square foot in the suburban areas. Class B space downtown ranges from $13 to $17 and from $13 to $20per sq ft out in the suburbs.
We have reported on many occasions that the US property market has suffered badly in the recession. Common occurrences are falling rental and capital values, as well as weakening demand. This glut is driven by the problems in the wider economy, namely increasing levels of unemployment. When unemployment is high, companies shed staff and thus require less office space. It also fuels a surge in sublease office space, which drags down rental levels.
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