The NYC office market sets a new trend, and why multifamily investors like secondary markets
May 22, 2015
Here are the news stories you might have missed this week:
The New York Times: Rejecting the cubicle for an expanse of space
New York has always been a trendsetter, and one of the latest movements coming out of the Big Apple is superwides — uninterrupted office floors that span 100,000 square feet or more. Companies are demanding this rare floor design, as many hope that connected employees will boost productivity. While demand is up for these mammoth spaces, supply is hard to fill, since few NYC office buildings fit this floorplan. Still, the trend of open floor plans is growing in popularity, and smart investors are jumping on the bandwagon. The whole story can be found at NYTimes.com.
National Real Estate Investor: Multifamily investors bid in secondary, tertiary markets
Investors are pouring money into the multifamily market, and not just the six biggest metro areas. Data shows investors spent more than $16.2 billion on apartments in secondary and tertiary markets across the U.S. in the first quarter — a much larger volume than in the six major markets. These overlooked regions represent great investment opportunities due to rising rent prices and modest new construction. While there are still risks, such as market volatility and weakening economic outlooks, investors are seeing higher yields for multifamily properties in these lower-level markets. Investigate this trend at NREIOnline.com.
Houston Business Journal: What’s ahead for Houston office construction costs
As oil slumped, all eyes turned to Houston. Today, Houston-based developers are watching the costs related to office construction, and following these costs as it relates to oil trends. In some cases, construction costs in the office segment have increased slightly — such as core and shell costs for high-rise office buildings — but these numbers are expected to flatten out and eventually drop later this year. Read the whole story at BizJournals.com.
Chicago Real Estate Daily: Northwest Indiana struggles to provide new industrial space
Industrial development in Northwest Indiana screeched to a deafening halt last year. This stands as a huge problem for the region, since lack of supply is pushing interested renters to cities like Chicago and Indianapolis. With no industrial developments being built on speculation, builders and investors are wary of the area, as it could prove to be a huge financial risk. But, some brave developers are moving ahead on these types of projects, and tenants are signing up — signaling a level of demand that remains untapped. To learn more about Northwest Indiana’s industrial prospects, visit ChicagoBusiness.com.