{"id":1004036002,"date":"2012-01-25T12:31:14","date_gmt":"2012-01-25T20:31:14","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004036002"},"modified":"2022-12-05T01:54:59","modified_gmt":"2022-12-05T09:54:59","slug":"recovery-returns-to-core-metros-five-years-off-for-others","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/recovery-returns-to-core-metros-five-years-off-for-others\/","title":{"rendered":"Recovery Returns to Core Metros, Five Years Off for Others"},"content":{"rendered":"

By Nicholas Ziegler, News Editor<\/strong><\/p>\n

While it seems clear that multi-family will see the most active investment in 2012 \u2013 a recent poll by Commercial Property Executive <\/em>saw 65 percent of respondents choosing that sector<\/a> as the one that will see the most capital in the new year \u2013 there are solid arguments to make for the office landscape as well. \u201cMy guess is that, in 2012, we\u2019ll see other product types in the mix,\u201d Ken McCarthy, senior economist at Cushman & Wakefield Inc., told CPE<\/em>, \u201cas leasing fundamentals improve and with no construction in the pipeline.\u201d<\/p>\n

And while interest for the upcoming year will likely be focused on high-value markets, such as New York City and Washington, D.C., the harder-hit cities will likely get their time to shine some years down the road. \u201cIn 2011,\u201d McCarthy said, \u201cinvestors went back to core metros.\u201d<\/p>\n

The lead research analysts for CBRE Group Inc. found that locality will play a large role in the investment volume as well. As they noted in a year-end report, there will likely be a slowdown in in-place rents for many cities across the country due to sub-normal economic growth and slow recovery in fundamentals. While \u201cit is not clear how widespread this issue is,\u201d the report noted, \u201cit depends on the lease-term length customary in a given local market.\u201d<\/p>\n

And, as McCarthy mentioned, many of those cities showing unsure growth are outside of the core metros. A report by NAI Horizon on the Phoenix office market shows that McCarthy\u2019s assertion may be looking in the right direction. \u201cAs we enter 2012,\u201d the fourth-quarter report noted, \u201ca new attitude is taking hold. Though conditions remain weak, 2011 saw an increase in in-migration population and new-job creation, creating optimism about improvement in this sector.\u201d Sales transactions for the city\u2019s office market dropped as a three-year run of increased unemployment, corporate contractions and a flight to quality \u2013 which left many spaces unoccupied \u2013 battered the Phoenix area. With the modest gains in occupancy and absorption numbers at the end of 2011, however, things could possibly be turning around.<\/p>\n

The picture is very similar in Atlanta. According to Cushman\u2019s research, the city\u2019s third quarter was marked by slowed momentum in the office sector, with year-to-date leasing activity in 2011 down 3 percent from the previous spot in 2010, reaching just 7 million square feet. And the flight to quality was a real factor as well. \u201cNot surprisingly, tenants, when able, continued to trade up, moving from Class B and C product into Class A product at attractive pricing,\u201d a report noted.<\/p>\n

So what does that five- to seven-year timeline hold? \u201cThose Southern cities that boomed in the early 2000s will take a little longer to digest,\u201d McCarthy said. \u201cCities like Atlanta, Houston, Phoenix and Dallas will see a recovery in five or six years.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

While there were a lot of positive moves in the country\u2019s strongest office markets during 2011, the smaller cities will likely have to wait a few years to see their recoveries. <\/p>\n","protected":false},"author":1201,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[37301],"tags":[],"class_list":["post-1004036002","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"acf":[],"yoast_head":"\nRecovery Returns to Core Metros, Five Years Off for Others - Commercial Property Executive<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/recovery-returns-to-core-metros-five-years-off-for-others\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Recovery Returns to Core Metros, Five Years Off for Others\" \/>\n<meta property=\"og:description\" content=\"While there were a lot of positive moves in the country\u2019s strongest office markets during 2011, the smaller cities will likely have to wait a few years to see their recoveries.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/recovery-returns-to-core-metros-five-years-off-for-others\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2012-01-25T20:31:14+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-12-05T09:54:59+00:00\" \/>\n<meta name=\"author\" content=\"Nicholas Ziegler\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/recovery-returns-to-core-metros-five-years-off-for-others\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/recovery-returns-to-core-metros-five-years-off-for-others\\\/\"},\"author\":{\"name\":\"Nicholas Ziegler\",\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/#\\\/schema\\\/person\\\/ff3a837f33daecfcf8978b405eaae20c\"},\"headline\":\"Recovery Returns to Core Metros, Five Years Off for Others\",\"datePublished\":\"2012-01-25T20:31:14+00:00\",\"dateModified\":\"2022-12-05T09:54:59+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/recovery-returns-to-core-metros-five-years-off-for-others\\\/\"},\"wordCount\":476,\"commentCount\":0,\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/recovery-returns-to-core-metros-five-years-off-for-others\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/recovery-returns-to-core-metros-five-years-off-for-others\\\/\",\"url\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/recovery-returns-to-core-metros-five-years-off-for-others\\\/\",\"name\":\"Recovery Returns to Core Metros, Five Years Off for Others - 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