NEW YORK, NY -- Banking/Finance Leads Market; Southeast Showing Strong Growth; Midwest & West Coast Continue to Confront Excess Inventory A new landmark national survey from Black's Guide, the nation's most comprehensive and industry-leading commercial real estate (CRE) source, reveals today that 89% of CRE professionals feel confident that business will be as good as or better in the next six months as in the prior six months. This confidence follows a half-decade slump in the commercial real estate industry.
Rather than focusing on where tenants will come from, CRE professionals are focusing on the increased demands of new tenants such as WiFi and food services and the challenges of accelerating development such as traffic issues and delays in construction permits, the survey shows.
Nearly 1,000 commercial real estate professionals nationwide participated in the survey. This respondent pool was drawn from the Black's Guide online registered-user database which consists of over 18,000 commercial real estate professionals -- largely brokers, property managers and developers -- in 19 markets the company serves around the country.
This upward trend of market activity indicated in the survey has been reflected in the robust traffic that the Black's Guide website (http://www.blacksguide.com/) has also experienced, where users are able to easily search a database of more than 80,000 properties.
"The results of our first CRE Trends Survey demonstrate that the commercial real estate industry is experiencing signs of consistent growth after a sluggish five years," say Ed Barnes, vice president and general manager of Black's Guide. "CRE professionals are back into problem-solving mode ... looking for the kind of creative solutions and high-quality information that gets deals done."
Other key themes on the current state of the CRE market that the survey cites include:
* On space requirements: 43% of respondents posited their average space
requirement over the last 6 months as between 1,000-5,000 square feet.
* On term of a lease: The majority of respondents (55%) cited 3-5 years
as the average term of a lease entered into in their market.
* On deal value: The majority of respondents (58%) noted their average
leasing deal was worth up to $500,000 this year; 14% had average deals
between $1 million-$5 million.
In all but two of the markets polled, 'banking/finance' ranked as the leading industry to have leased commercial space over the past 6 months.
Industry Outlook and Trending Data
The Black's Guide survey found that certain markets had a decidedly more optimistic industry outlook than others. Orlando is the most optimistic city of those surveyed: 51% of Orlando's respondents anticipated their average current space requirement to 'increase' in the coming 6 months. Denver had the second most positive outlook with 50% anticipating an 'increase'; in third place was Tampa, with 45% of respondents predicting an 'increase'. The two Florida cities both also cited an increase in average space requirements over the past 6 months.
Amenities and Challenges
According to the Black's Guide findings, WiFi was cited as the most popular amenity being requested by tenants today. Coming in at number two was food services; health clubs came in third. Some interesting amenities being asked for are: '24-7 air conditioning for computers' (South Florida), sustainable/green practices within the facility' (New Jersey) and 'high-end restaurants' (Dallas).
Lack of parking topped the list nationwide as the biggest challenge to leasing commercial space today, but naturally certain markets differed on this question, pointing to the unique challenges that influence or afflict individual markets:
* The San Francisco and Michigan markets cited 'excess inventory' as
their major obstacle; 67% and 75%, respectively.
* The Orlando and New Jersey markets noted 'lack of inventory' as their
biggest challenge; 41% and 31%, respectively.
* The Jacksonville, FL and New York City markets specified 'creating
product differentiation'; 50% and 34%, respectively.
Barnes adds, "CRE professionals have come to rely on www.BlacksGuide.com as a high quality-lead generation source for their business, and our newly enhanced site will deliver even greater results. Through this most comprehensive, free, up-to-date online database of commercial properties in the country, the industry-at-large benefits from the studies we conduct identifying key shifts in the market, our users benefit with improved search and reporting capabilities, and our advertisers benefit with better lead tracking."
Exclusive web partnerships are also driving more traffic to http://www.blacksguide.com/. As the official search engine of the Wall Street Journal's commercial real estate site, http://www.realestatejournal.com/, and leading commercial real estate news site http://www.globest.com/, Black's Guide will draw another 60,000 page views per month.
About the study:
The 10-question multiple-choice questionnaire was national in scope. Specific markets polled were: Atlanta, Baltimore, Boston, Chicago, Connecticut/New York, Dallas, Denver, Houston, Jacksonville, Los Angeles, Michigan, New Jersey, Manhattan, Orlando, Philadelphia, Richmond, San Francisco, Tampa, and Washington DC. While commercial real estate brokers constituted 35% of all respondents, there were also property managers (13%) and developers (8%) among others -- such as landlord reps and investors -- who weighed in. Respondents polled came from the Blacks Guide online database.
About Black's Guide:
Founded in 1976, Black's Guide delivers actionable data to commercial real estate brokers, owners, developers, property managers and tenants. Published throughout the year, 55 print directories contain information, statistics and trends on more than 88,000 properties in 19 major metropolitan markets and its extensive proprietary database covers more than 6 billion square feet of space. With its companion web site, Black's Guide provides FREE comprehensive and accurate data that helps dealmakers quickly find and compare properties and then locate the right people to contact. Internet site, http://www.blacksguide.com/
About the upgrades to www.Blacksguide.com:
The most comprehensive free searchable database of commercial properties, www.BlacksGuide.com is also the most accurate database of its kind with building listings updated each day. Users will benefit from easier navigation for faster property listing searches, improved search and reporting capabilities, daily data updates to provide users the latest information on available commercial properties, and increased property comparison capabilities. A notable feature of the improved site is the Professional Directory database: searches will locate associations, brokers, developers, property managers, security companies, executive office suites, architects, engineers and more; additional space online for advertisers to promote their properties, better lead tracking and reporting, and relevant ad serving.
Source: Black's Guide
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| Notes:
CONTACT: Media Contacts: Tami Gross or Celene McDermott of TMG Public
Relations, +1-212-750-5755; both for Black's Guide
Web site: http://www.blacksguide.com/
http://www.realestatejournal.com/
http://www.globest.com/
About This Release
If you have any questions regarding information in this press release, please contact the organization listed in the press release. Issuers of press releases and not TCI are solely responsible for the accuracy of the content.
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