US commercial property prices have fallen to the lowest level since 2002, according to a report released last week.
The Moody’s/REAL Commercial Property Price Index showed a decline of 3.9% in real estate values from August until September. Commercial property prices in September were 37% lower than they were a year ago and and 43% below the index’s peak in October 2007. Despite this nosedive, Moody’s said the rate at which the prices are declining has slowed to a moderate pace. Prices averaged a drop of 4.6% in April and May but averaged at 3.2% from June until September. (more…)
America’s first few months coming out of the recession were not as robust as was first believed, according to figures released from 
Washington this week.
The figures show the growth rate was stunted by rising imports and the weak commercial property market. Figures show gross domestic product did rise in the third quarter but not by as much as was first forecast. It rose at an annual rate of 2.8% – lower than the 3.5% estimated earlier in the year. This is the first time it’s risen since the second quarter of 2008 when it rose at an annual pace of 2.4%. The figures out suggest the US economy grew by only 0.7% in the third quarter – not as much as the predicted 0.9%. (more…)
A suburban office developer is planning one of the biggest new office parks in Carroll County for years.
St John Properties Inc has signed a long term lease with the owner of a golfing range in Eldersburg and has won county approval to transform the 40 acres into 215,000 square feet of offices and shops. Work is set to begin on the $24 million Liberty Exchange early next year along Liberty Road, west of Route 32. The development will provide a much needed boost to the area’s struggling local economy. It’s believed 560 permanent jobs will be created, with nearly 400 more during the construction phase. (more…)
Despite a rocky year, search engine giant Yahoo have unveiled plans for a new campus in Santa Clara in California which could house 12,000 workers.
The total complex would include about 3 million square feet of office space and could potentially be the largest single real estate development in the city’s history. It would feature 13 six-story buildings constructed over a large underground parking garage according to a draft Environmental Impact Report released this week for public review. The internet company have refused to disclose the cost of the proposed 48 acre site but the final completion is years off and could be cut back during the build. (more…)
Three new office towers in Toronto could push the city’s vacancy rates higher than that of New York and Boston according to Cushman & Wakefield.
The proportion of empty office space in downtown Toronto will more than triple in 2011 to 13.6%. The three new towers will add around 3.2 million square feet of office space to the city – about as much as was added in the past 17 years combined. Brookfield, Cadillac Fairview Corp and Menkes Developments Ltd have each added a glass tower to the skyline of the most popular city in downtown Canada in the last 5 months. (more…)
Small and medium-sized businesses in the US are feeling more positive about the future, according to the National Federation of Independent Businesses (NFIB).
It reported it’s monthly small business optimism index grew 0.3 points to 89.1 in October – a rise for the third consecutive month and a 13 month high. Despite this new-found optimism, many SME’s remain cautious for the future. Lack of customer demand has seen sales weaken for many companies in the last few months. The NFIB have said these weak sales have made it hard for a net 14% of small businesses to obtain credit. (more…)
The US office space market won’t recover overnight – it’s going to be a long, slow process according to experts this week.
“2010 wont feel like a classic recovery, but it will certainly feel better than 2009,” said Bob Bach, SVP and Chief Economist at Grubb & Ellis. In fact, experts predict the market is going to get worse before it gets better. Jones Lang predict vacancies will soar to 19.5% in 2010 while Grubb & Ellis predict a peak of 18.7%. Nationally a continued lack of bank spending and customer demand has meant there’s little money for expansion or business growth. Falling rents have seen tenants have the upper hand in the current market. (more…)
Starwood Hotels & Resorts Worldwide Inc have this week announced plans to move their headquarters to Stamford, Connecticut in January 2012.
The firm currently has it’s headquarters in White Plains, New York and are set to take on office space at Stamfords waterfront Harbor Point. The move is set to bring 800 full-time Connecticut positions and will see the firm take on 250,000 square feet of office space within 2 years. This will hopefully go someway towards repairing the current unstable economy in the area. They have said they will invest $40 million in the existing facility. The Department of Economic and Community Development will assist the relocation with a $9.5 million and up to $75 million in Urban and Industrial Site Re-investment Tax Credits. (more…)
