Return-Path: Delivered-To: andrew@sterlingcal.com Received: from reseller401.webserversystems.com by reseller401.webserversystems.com with LMTP id pbswIfH6gmafRAEAchKAPA (envelope-from ) for ; Mon, 01 Jul 2024 13:52:33 -0500 Return-path: Envelope-to: andrew@sterlingcal.com Delivery-date: Mon, 01 Jul 2024 13:52:33 -0500 Received: from wfbtbtpz.outbound-mail.sendgrid.net ([159.183.183.62]:33352) by reseller401.webserversystems.com with esmtps (TLS1.2) tls TLS_ECDHE_RSA_WITH_AES_128_GCM_SHA256 (Exim 4.96.2) (envelope-from ) id 1sOM8e-000LYa-2e for andrew@sterlingcal.com; Mon, 01 Jul 2024 13:52:33 -0500 DKIM-Signature: v=1; a=rsa-sha256; c=relaxed/relaxed; d=jefftaborgroup.com; h=content-type:from:mime-version:subject:to:cc:content-type:from: subject:to; s=s1; bh=d9g5PJO8SgrzVexwPrItS2uGE2KaXO8+PpU00a3zaSA=; b=GDk/Cb+4exWKq/Wvl7t/YMinAGrMKlflk3TQm3YeBHcXyUS1sPDLfNIp5c37MezgKi9S A549xvpo93sT/vm6tT11GKWyXM9zGkt1i2La6vSbVpGL//6z4tEszRvXCqZ9nGL3zEP1dk 8DCrRFbSEkrizhvegPVAiEM9ynNo0nkbmbPIF3bnCN/gq5dh+0zR7oVP8AA6qNJsgVal8o GT19LhCtb5b1JL2IYxZxEaRCHJw92cR3EhhEkvaIYzhCpFaxMACdhAemHbfB3bzjSyv9nf SUvzUlkxI60RAdQ9Zc+qTG3CruMcSCjVKo1tXr8CW0MxT17uHJ6W8mZDi7hNYHAw== Received: by recvd-5b7b5d84cd-zwm8n with SMTP id recvd-5b7b5d84cd-zwm8n-1-6682FAE4-1 2024-07-01 18:52:20.011444421 +0000 UTC m=+351865.636223292 Received: from MjEzMTA1MDQ (unknown) by geopod-ismtpd-26 (SG) with HTTP id Gj-5OE5yQkyhQKCkNt1--Q for ; Mon, 01 Jul 2024 18:52:19.979 +0000 (UTC) Content-Type: multipart/alternative; boundary=4eb758b4c48987d8fefabb65c82976546658449ad98a7818a8151050f03f Date: Mon, 01 Jul 2024 18:52:21 +0000 (UTC) From: Jeff Tabor Mime-Version: 1.0 Subject: What your landlord doesn't want you to know Message-ID: X-SG-EID: =?us-ascii?Q?u001=2E6XgS+aMGExnB1bqZZrdrz9qzQEbZ7BEjpKh5guDijZ5HYu1dYAKq1tDEG?= =?us-ascii?Q?Tygo2l3bpRSrRRtQO=2FYwkK2RsxQ5HqpJEVgwUFJ?= =?us-ascii?Q?0pSZwTM3xNnv2NnjoxUwtf3uaV7+qTjlE9jn14Q?= =?us-ascii?Q?K+HHcOX2XmH4HqWnsZwhzTgISZBrFj6IHS7eIbX?= =?us-ascii?Q?okLk6nuqLUPw2acVx34k=2Fzu0yt+Rb=2FO1RiFDi4=2F?= =?us-ascii?Q?MSkqgVbJYsvBJvXEP2uJ66raXjh1QyZIL8eaRYA?= =?us-ascii?Q?BQea?= X-SG-ID: =?us-ascii?Q?u001=2ESdBcvi+Evd=2FbQef8eZF3BurA8LT245rejeNtjX=2F47+6oYPD0DV0HryXFp?= =?us-ascii?Q?jVKG9=2F3DKccchHoTTq2qAq3=2FQ3cW+KL44C6eWDh?= =?us-ascii?Q?kn6UMlmhU23hL9wSslqg54oxxGiPh2d+c2Epml4?= =?us-ascii?Q?yw8vwk=2FsKjefKfw=3D=3D?= To: Andrew Sterling X-Entity-ID: u001.hZHiB6kKM9UW5e2fAO4iNQ== X-Spam-Status: No, score=-3.7 X-Spam-Score: -36 X-Spam-Bar: --- X-Spam-Flag: NO --4eb758b4c48987d8fefabb65c82976546658449ad98a7818a8151050f03f Content-Transfer-Encoding: quoted-printable Content-Type: text/plain; charset=iso-8859-1 Mime-Version: 1.0
=20

Andrew, good morning. Please see below…ho= t off the press…and what your landlord doesn’t want you to kno= w!

I 100% agree with the points made here…as I am in and out = of office buildings all day long…many of whom one could fire a canno= n ball through and not hit a soul!

 Feel free to drop me a line= with any questions/comments.

Sincerely,


J= eff@JeffTaborGroup.com
JeffTaborGroup.com
(800) 5= 07-6673
RE License # 01015287

Connect with me on LinkedIn:&nb= sp;Jeffrey A. Tabor




8% Of U.S. Office Buildings Are Taking Basically All The T= enant Activity

Only 8% of office bui= ldings are thriving, while most of the market has been struggling since the= onset of the pandemic.

A CBRE analysis of 5= 7 U.S. office markets found that only a sliver of office properties are suc= cessful in attracting tenants today, a sharp acceleration of the flight-to-= quality trend.

This upper echelon is = designated as prime office buildings by CBRE, a more exclusive category tha= n Class-A buildings, which account for 61% of the market. Of 830 buildings,= 8% by square feet and 2% by building count fit into the prime category.

Prime buildings are determined by a mul= titude of criteria and are the best of the best in their area, rather than = nationally. They are the top 2% to 5% of a market's offices when factor= ing in age, location, design quality, ceiling heights, green certifications= , views, amenities and differentiation from other buildings.<= /p>

Prime offices went for an average rent premium of 8= 4% more than their competition in the first quarter, CBRE said. That premiu= m was 60% in 2018. These properties also clocked in a positive net absorpti= on of 48M SF from 2020 until now, while the remaining 92% of office buildin= gs are reporting negative net absorption of 170M SF.

Average vacancy in prime buildings was 4.5% lower than the = rest of the market, at 14.8%. This gap has widened since 2018, when it was = 1.9%.

Companies want amenity-rich, qu= ality-designed spaces offered in prime office buildings rather than commodi= ty office space, Mike Watts, CBRE's president of Americas investor leas= ing, said in a press release.

Ameniti= es are part of the algorithm of what makes a building “prime” a= nd are major rent drivers, JLL found. Buildings with snazzy features like a= roof or sky terrace can get rent premiums of 5.2% over Class-A buildings i= n the same submarket. Courtyards with outdoor seating and LEED-certified bu= ildings offer up to 3.5% and 2.8% premiums, respectively.

=

Flight to quality has been a buzzword for years, but t= he data shows it has taken a firmer hold and that “quality” mea= ns something very, very new these days.

Office buildings less than 10 years old are posting positive net absorpt= ion, while the older properties are rapidly losing tenants. Buildings built= before 2014 have collectively lost 420M SF of occupancy, CoStar reported. = In the last real estate cycle, the difference was not so stark, and buildin= gs of almost any age continued to see demand.

CBRE predicts prime office space will continue to fly off the shel= f and will bring availability down in that trophy category, especially as d= evelopers halt office construction due to high vacancy rates and a tough le= nding market. Just shy of 15M SF is set to be delivered this year, but that= 's expected to drop dramatically to 4.2M SF in 2025 and 2.6M SF in 2026= .

That will start to trickle leasing activity down = to the Class-A tier below prime, CBRE Director of U.S. Office Research Jess= ica Morin said.

If you would like to = unsubscribe, please click here

= Jeff Tabor Group=A0| 501 W. Broadway, Suite 800=A0| San Diego=A0| CA | 9210= 1
--4eb758b4c48987d8fefabb65c82976546658449ad98a7818a8151050f03f Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset=iso-8859-1 Mime-Version: 1.0
=20

Andrew, good morning. Please see below…ho= t off the press…and what your landlord doesn’t want you to kno= w!

I 100% agree with the points made here…as I am in and out = of office buildings all day long…many of whom one could fire a canno= n ball through and not hit a soul!

 Feel free to drop me a line= with any questions/comments.

Sincerely,


Jeffrey A. Tabor – Founder/CEO
Jeff@JeffTaborGroup.com=
JeffTaborGroup.com
(800) 507-6673
RE License # 01015= 287

Connect with me on LinkedIn: Jeffrey A. Tabor




8% Of U.S. Office Buildin= gs Are Taking Basically All The Tenant Activity
<= img src=3D"https://love.sam.ai/ckImages/images/5186/bisnow_1.png" class=3D"= fr-fic fr-dib" width=3D"588" style=3D"width: 588px;">

Only 8% of = office buildings are thriving, while most of the market has been struggling= since the onset of the pandemic.

A CBRE ana= lysis of 57 U.S. office markets found that only a sliver of office properti= es are successful in attracting tenants today, a sharp acceleration of the = flight-to-quality trend.

This upper e= chelon is designated as prime office buildings by CBRE, a more exclusive ca= tegory than Class-A buildings, which account for 61% of the market. Of 830 = buildings, 8% by square feet and 2% by building count fit into the prime ca= tegory.

Prime buildings are determine= d by a multitude of criteria and are the best of the best in their area, ra= ther than nationally. They are the top 2% to 5% of a market's offices w= hen factoring in age, location, design quality, ceiling heights, green cert= ifications, views, amenities and differentiation from other buildings.

Prime offices went for an average rent pr= emium of 84% more than their competition in the first quarter, CBRE said. T= hat premium was 60% in 2018. These properties also clocked in a positive ne= t absorption of 48M SF from 2020 until now, while the remaining 92% of offi= ce buildings are reporting negative net absorption of 170M SF.

Average vacancy in prime buildings was 4.5% lower= than the rest of the market, at 14.8%. This gap has widened since 2018, wh= en it was 1.9%.

Companies want amenit= y-rich, quality-designed spaces offered in prime office buildings rather th= an commodity office space, Mike Watts, CBRE's president of Americas inv= estor leasing, said in a press release.

Amenities are part of the algorithm of what makes a building “prim= e” and are major rent drivers, JLL found. Buildings with snazzy featu= res like a roof or sky terrace can get rent premiums of 5.2% over Class-A b= uildings in the same submarket. Courtyards with outdoor seating and LEED-ce= rtified buildings offer up to 3.5% and 2.8% premiums, respectively.<= /span>

Flight to quality has been a buzzword for ye= ars, but the data shows it has taken a firmer hold and that “quality&= rdquo; means something very, very new these days.

Office buildings less than 10 years old are posting positive n= et absorption, while the older properties are rapidly losing tenants. Build= ings built before 2014 have collectively lost 420M SF of occupancy, CoStar = reported. In the last real estate cycle, the difference was not so stark, a= nd buildings of almost any age continued to see demand.

CBRE predicts prime office space will continue to fly of= f the shelf and will bring availability down in that trophy category, espec= ially as developers halt office construction due to high vacancy rates and = a tough lending market. Just shy of 15M SF is set to be delivered this year= , but that's expected to drop dramatically to 4.2M SF in 2025 and 2.6M = SF in 2026.

That will start to trickle leasing acti= vity down to the Class-A tier below prime, CBRE Director of U.S. Office Res= earch Jessica Morin said.

If you would like to unsubs= cribe, please click here

= Jeff Tabor Group=A0| 501 W. Broadway, Suite 800=A0| San Diego=A0| CA | 9210= 1
3D"" --4eb758b4c48987d8fefabb65c82976546658449ad98a7818a8151050f03f--