Commercial real estate growth up in Northeast and Southwest, bill demands energy usage disclosure, and startups sublet Manhattan offices
Jul 29, 2013
Here are the news stories you may have missed last week:
New York Times: Sublets lure Manhattan start-ups
Manhattan is notorious for sky-high rent, but some savvy start-ups and tech companies are saving cash by subleasing work space from larger companies. And beyond lower rents and security deposits, smaller companies on subleases are enjoying lease flexibility and fully furnished work spaces. For small start-ups, these plug-and-play spaces are ideal. Additionally, some companies rent more space than needed and sublet the additional space at competitive rental rates. Check out the article at The New York Times for more on the emerging tech company sublet market and how it’s affecting rental rates.
Wall Street Journal: The devaluing of Detroit
According to an Urban Land Institute survey, Detroit was named the worst of 51 U.S. markets for real estate in the areas of home building activity, investment prospects, and development interest. And the depreciation in property values — a major contributor to the city’s bankruptcy – isn’t helping. In the past five years, Detroit’s total assessed property value sank by 35%, and commercial real estate fell 21%. For more information on Detroit’s dipping property values, visit wsj.com.
Napa Valley Register: Another disclosure requirement for commercial real estate
Starting September 1, all California commercial real estate owners will have to disclose utility and water usage rates for buildings over 50,000 square feet prior to sale, leasing, or financing through the EPA’s Energy STAR Portfolio Manager Benchmarking Tool. This mandate, known as Assembly Bill 1103, is a result of findings from the California Center for Sustainable Energy that 35% of all electrical usage in the state stems from commercial buildings. You can find out more about AB 1103 and future regulations at napavalleyregister.com.
StarTribune.com: Real estate executives are bullish on geographic expansion
A recent study from KPMG reveals that the bulk of commercial real estate growth over the past year has been isolated to the Northeast and Southwest. These regions were hit the hardest during the recession, and thus had the highest recovery potential. Trends nationwide show that 58% of real estate executives foresee their companies increasing spending on geographic expansion. Multifamily development is also expected to see explosive growth, followed by retail and hospitality development. Head over to the StarTribune.com to learn more about the study.
Posted by: Raymond T. Cirz