More evidence proves the death of suburban office parks, and big hotels are splitting in two Jun 26, 2015

Here are the news stories you might have missed this week:

GlobeSt.com: Class A rent growth goes nationwide

It’s a good time to be an office landlord. Office rents are up throughout the country, and tenant-effective rents jumped to the largest year-over-year gain in four years. In about two thirds of U.S. markets, effective rents increased by more than five percent, and a few markets like Denver, Houston, and Philadelphia saw effective rents move past pre-recession highs. Factors including positive job growth, strong investment sales, and returning strength in key markets, played a big role in the increase of effective rates throughout large U.S. markets. Read about this Class A office rent trend at GlobeSt.com.

Washington Business Journal: The suburban office park is a relic. Here’s the damage it’s doing to Montgomery County

In Montgomery County, Maryland, more than 2 million square feet of suburban office space stood vacant by mid-2014, and in the Washington, D.C. area, that number climbed to more than 71 million square feet. These numbers are yet another sign that the suburban office park is dying. The increase in vacancies is no surprise, and it serves as more evidence that businesses are looking for spaces near mass transit hubs that have amenities like retail and restaurants. Now, investors, developers, and even governments bodies are trying to revitalize the office sector throughout the region by packing in more mixed-use elements to keep businesses and entice new rentals. To read more about what’s happening in office parks around Baltimore and D.C., visit BizJournals.com.

Philadelphia Business Journal: Center City apartment building sale sets new high water mark

The Philadelphia multifamily market is hot. So hot, in fact, that legacy buildings have transformed into apartments, and are now selling for big money. That’s what happened at 1616 Walnut St. The office building recently converted into apartment space and was quickly snatched from the market. The building just sold for $112 million, a record based on square feet, showing that investors are hungry for Philly multifamily properties. Read the whole story about this Walnut Street building at BizJournals.com.

GlobeSt.com: Big hotels eyed for transformation

What do you do when one old hotel is too big for a single chain? Split it in two. The Royal Dearborn, Hotel and Convention Center is the second largest hotel in Michigan, and while it’s size might have made sense during the Ford Motor Company heyday, as it sits right across the street from the headquarters, it’s now far too large for one single brand. To solve this problem, officials are toying with the idea of selling the space to two separate hotel chains, or dividing the space into half hotel and half residential. The proposal would divide the room count, making the space far more manageable for a singular chain. While this might seem like a strange move, it’s not all uncommon, as more developers are repurposing larger properties into dual-branded hotels. Learn more about this hotel sector trend at GlobeSt.com.