Josh Harkinson’s Post

🏢 A recent article delves into a city's unique position and its lessons for the broader market. The shift towards repurposing empty office buildings raises critical questions about combating rising vacancy rates effectively. Insights underscore the complexity of this challenge, emphasizing that merely removing empty space may not suffice. Cleveland's experience, with a significant percentage of office stock earmarked for conversion, sheds light on the broader trends shaping the industry. Data highlights key metrics, from square footage planned for conversion to absorption rates and leasing activity, painting a nuanced picture of the market dynamics. Amidst these transformations, a reminder rings true: conversions alone cannot address all of the office market's complexities, especially in a landscape marked by high interest rates and diverse property considerations. Cities with innovative financial incentive plans may hold the key to revitalizing older office districts into vibrant mixed-use hubs, aligning with occupiers' evolving needs. The article prompts us to rethink conventional approaches and consider holistic strategies for navigating the evolving office landscape. Bio: https://lnkd.in/eB3g9bP3 Google Business Profile: https://lnkd.in/egn5jSck LinkedIn: https://shorturl.at/bmDMV Facebook: https://lnkd.in/eGTqGWuN Instagram: https://lnkd.in/eZMXQpjn TikTok: https://lnkd.in/ejfsyqfM #commercialrealestate #commercialproperty #CommercialLand #commerciallandforsale #warehousespace #officespace #flexspace #industrialspace #sandiegocommercialrealestate #sandiegorealestate #realestate #cre #realtor #realestateagent #realestateinvesting #property #commercial #commercialproperty #realestateinvestor #business #investment #propertymanagement #investmentproperty #residentialrealestate #forsale #retail #entrepreneur #construction #officespace #realestatebroker #EconomicInsights #InflationAnalysis #FedPolicy

At the end of the day life goes on! Regardless of lay offs, office sub-leasing and more; there are business still moving on and up. You can't change what's happening out there, you can change what's happening within you, within your control. #yourrealestateamigo

The current state of the office market is marked by challenges including the lack of premium spaces, the ongoing impact of remote work and the trend of decreasing property valuations. 📉 A recent report by Cushman & Wakefield exploring optimistic opportunities in the urban office sector highlights some hopeful factors to consider – such as the sustained demand for office spaces in cities, a preference for high quality workplaces and an increased focus on centralized locations. This GlobeSt.com article breaks down all the report’s handful pathways for growth and recovery in the sector: https://lnkd.in/g3binGgg   #IntegrisVentures #RealEstateOperator #Office #OfficeMarket #PropertyValuations

It's a $1,000,000 decision. How do you decide what's right? I've just signed a lease for a new office space. And it's a decision that's taken months to make. A new office is actually been something we've been looking at all year. The team is growing and it's become harder for us to do good work in our current space. I've been trying not to use our meeting rooms too much these days because they are always needed for other things. Same goes for the team. Which means we are all taking calls at our desks and telling everyone else to shut up. Even others in the team are telling me they need a better space to do better work. Another part of it is that, since we're a business that's always growing, as a team we're always looking for the next thing. The idea of a shiny new office is fun and exciting. But none of that stuff mattered if the finances of this new place weren't right. We've had this potential deal on the table for several weeks now. The price was always right, which was the most important part. But I had to take my time making sure the structure of the deal was what we needed to make it work. The timing had to work for us, too. Because while we want to lock in the place now, we won't be ready to start until April, so we needed the owner to agree to push the date out. And there were other terms we wanted to work out so it would be a good business decision long term. So even though we probably felt ready to move offices six months ago, it won't happen until April next year. Because excitement and emotions can never be the driving force in a decision like this. It has to be the right time for the business. And, looking at our forecast, we are confident the business will only move forward between now and then. That's why I felt confident the timing was finally right to sign the lease.

Curious about what is happening in the Tucson Office Market? Rick Kleiner recently wrote an article for The Trend Report covering how our market has been impacted by the advance of hybrid work and current economic headwinds. However, Rick sees both challenges as well as opportunities for owners, tenants, investors, and brokers. To read the full article, visit: https://lnkd.in/gJz4N85p #CRE #Tucson #Office #TheTrendReport

Has the office distress hit bottom? I still know a few folks with vacant office space looking to stabilize or sell -- although I do see some strong "return to office" mandates hitting the streets too... (Amazon, Apple, BlackRock, and many more locally and otherwise. Lots of pressure to re-occupy these spaces...) -- "According to the RCA Commercial Property Price Index, office prices have fallen 12.4% year-over-year. This trend has industry observers speculating that the worst of office distress may be behind us. An increase in transaction volume would confirm the industry's comfort level with current pricing." https://lnkd.in/e7mWutdF --- My name is Dave Weinstock and I’m the principal and founder of DW Capital. We help working professionals create passive income and build wealth by investing in commercial real estate. Click the “🔔” to follow me for information on real estate and passive investing.

This piece by The Wall Street Journal’s Carol Ryan is an interesting update on the state of office space in New York City and whether the outlook is brightening for owners of class A office real estate. There are so many benefits to bringing workers back to the office, including strengthening company cultures and collaboration, revitalizing city downtowns, increasing activity for small businesses such as restaurants and retail, and stabilizing the values of office buildings and property tax revenue for city services. Beyond communicating those economic benefits, we must also encourage workers to return to the office by providing high-quality office space and healthy surrounding communities that make them want to come back.

Last week, we published our Newmark 2Q24 Cleveland #Office Market Overview. Some takeaways include: - The Cleveland office market absorbed 92,328 SF in the second quarter of 2024, after a first quarter total of negative 191,467 SF. - The Cleveland office market’s average asking rental rate decreased slightly by $0.04/SF from the first quarter of 2024 to $19.95/SF in the second quarter of 2024. - Despite showing a flicker of life in the second quarter with a small amount of positive absorption, the Cleveland office market is still in the negative for the year. Shifting sentiment toward smaller spaces continued to dominate, while limited new rentable construction has enabled lease rates to generally remain on an upward trend. Uncertainty will persist until economic conditions become more favorable. For access to our comprehensive report, including details not shown in this summary and attached standard version, please contact your Newmark Cleveland brokerage representative or myself directly. #research #ClevelandOhio #marketreport #commercialrealestate #officeleasing

Downtown markets were hit first, and the hardest, but the suburban markets aren’t immune. As leases expire, companies are taking the opportunity to evaluate and adjust their office footprints to the new norm (at least for the foreseeable future). While I think we will continue to see more people returning to the office, we are seeing that it won’t be a quick process.

IP Capital Partners is investing $95.4 million in Florida real estate, allocating 70% to industrial properties and the remainder to office and medical office spaces. Despite challenges in the broader office market, South Florida and Tampa Bay remain strong. According to Blanca’s Q2 Miami report, “Miami's office market saw Class A and B rates increase 5% from the first three months of the year and leasing activity reach 1.44 million square feet.” The firm plans to expand further, targeting over $900 million in real estate, driven by strong demand and population growth. https://lnkd.in/g74ZVj8R