Return-Path: Delivered-To: andrew@sterlingcal.com Received: from reseller401.webserversystems.com by reseller401.webserversystems.com with LMTP id qNe6OM2yDmdhhgkAchKAPA (envelope-from ) for ; Tue, 15 Oct 2024 13:22:05 -0500 Return-path: Envelope-to: andrew@sterlingcal.com Delivery-date: Tue, 15 Oct 2024 13:22:05 -0500 Received: from wfbtbtpz.outbound-mail.sendgrid.net ([159.183.183.62]:18880) by reseller401.webserversystems.com with esmtps (TLS1.2) tls TLS_ECDHE_RSA_WITH_AES_128_GCM_SHA256 (Exim 4.96.2) (envelope-from ) id 1t0mBJ-002ceo-0u for andrew@sterlingcal.com; Tue, 15 Oct 2024 13:22:05 -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=gWHvFSh3JF+6aSZr0bFUD7RgJgnfmANxKL5rZbsm+NQ=; b=C6NusEdjIMHbgQCnHtd68VIxMEjFI83U4Wxjx2mpBrxBFA3Wjqdo1Ab+GTao9znxm/IN hCqm51W3ixUjcyzbzliuU8ojspvzyf0KXgzRwFSAO0YM0X4utJFTFgPDc89kEo0TRUkAPZ VwuAtVf+WTsYE36Q0qE8M1P9l6flj9VvBKPEbT3A2bfv8BgfUuzO/T/rnApNa9hmguk5Q5 FqVriwuQg29N/+BuxaweBHBH5J065Ek3lve4Rr7PlMGfmnGxNcgLVsJRZFykxdjh/cKK0W gHN69tXVgPJiH4kfhBd2Py3eWwzVw7qJ5QnSj0eRUCySaF/mcugFK20UkVP2zmtg== Received: by recvd-7cc7f7d978-bkskw with SMTP id recvd-7cc7f7d978-bkskw-1-670EB2BC-25 2024-10-15 18:21:48.542417524 +0000 UTC m=+2852674.987321798 Received: from MjEzMTA1MDQ (unknown) by geopod-ismtpd-1 (SG) with HTTP id yGPjm4UCSIi4B8U9oJgoiw for ; Tue, 15 Oct 2024 18:21:48.504 +0000 (UTC) Content-Type: multipart/alternative; boundary=50197d9c768583a59732985da488cc1067ebaf44e14cc23bf8ca84c910b0 Date: Tue, 15 Oct 2024 18:21:54 +0000 (UTC) From: Jeff Tabor Mime-Version: 1.0 Subject: Article/Quote Message-ID: X-SG-EID: =?us-ascii?Q?u001=2E6XgS+aMGExnB1bqZZrdrz9qzQEbZ7BEjpKh5guDijZ5HYu1dYAKq1tDEG?= =?us-ascii?Q?Tygo2l3bpRSrRRtQO=2FYwkK2RsxQ5Fk=2FaG73picJ?= =?us-ascii?Q?dYb8+sxdi9JcrJzbdBo7DEbc7sDvF3nN8ZRLjcv?= =?us-ascii?Q?1A6s0JucrPum3yVd8bqj8v2QVIHwo6++gU3fwk+?= =?us-ascii?Q?DFBK1A894Urai1i22LZ5M6hGlNnUVcKPkqmX8ra?= =?us-ascii?Q?01Wr4mL3jx+hbn9gNBupUM3RxY64trMgjlggmb7?= =?us-ascii?Q?09i2?= X-SG-ID: =?us-ascii?Q?u001=2ESdBcvi+Evd=2FbQef8eZF3Bs=2Fr6w1vb5a9SjGxqjs46y8Zhu6yydl5bEvSd?= =?us-ascii?Q?azLC4RwddQTV6Ebq0ENGExnIaXWADaBAKVzxkdw?= =?us-ascii?Q?E2VijulUK9VGRihxukKiFAIKCvwZb6rJG=2FCVBf8?= =?us-ascii?Q?fVLX+0+nR26ztmA=3D=3D?= To: Andrew Sterling X-Entity-ID: u001.hZHiB6kKM9UW5e2fAO4iNQ== X-Spam-Status: No, score=-4.4 X-Spam-Score: -43 X-Spam-Bar: ---- X-Spam-Flag: NO --50197d9c768583a59732985da488cc1067ebaf44e14cc23bf8ca84c910b0 Content-Transfer-Encoding: quoted-printable Content-Type: text/plain; charset=utf-8 Mime-Version: 1.0

=20

Good morni= ng, Andrew.

I thought you might like the article below…I am l= ess optimistic than the JLL brokers whose opinions scream loudly throughout= this article….perhaps because they mostly feed from the landlord tr= ough…

Also, this past Friday I received an email…somet= hing that provides me with immense satisfaction, particularly this coming f= rom a new business. A partial quote: “You know how to neg= otiate hard and get the best deal, so I really appreciate you, Jeff. Thank = you for representing me on my first location! =F0=9F=8E=89&rd= quo; I would be happy to forward to you her contact information to verify t= his if you so like.

Have a great week, Andrew! Please reach ou= t if there is anything I can do for you.

Sincerely= ,

Office Availability Declines For = First Time In Half A Decade

Tenants have been sco= oping up office space at an accelerating rate over the past few quarters.

But the office market reached an important turning point as= Q3 came to a close, with the past several months marking the first time in= five years that national availability levels for office buildings declined= , according to JLL.

The availability rate fell = 41 basis points during Q3 as net absorption swallowed 8M SF across the coun= try. That represented a 10% improvement from Q2, a JLL report stated.

“The peak and decline of total availability= in the U.S. office market was a significant milestone that reflects a broa= d tightening of the market,” JLL wrote in its analysis, predicting th= at vacancy levels will continue to go down over the next six months as sign= ed leases turn into occupied office floors.

The sector reached the milestone despite existing tenants reducing t= heir space needs as leases expire. A total of 53 tenants signed for less sp= ace than they previously occupied in Q3, and the 10 largest contractions re= presented 1.9M SF in occupancy losses.

Leasing volume increased in Q2 but grew another= 0.4% in Q3 to 50.4M SF, per JLL. Corporate relocations in gateway and seco= ndary markets boosted Q3’s volumes, especially in Sun Belt office mar= kets, which saw leasing growth of 9.4% quarter-over-quarter.<= /p>

Chevron, SpaceX, social media platform X, Verily Bi= osciences, Canoo, and Koya Medical all announced plans to move their headqu= arters from California to Texas. Foot Locker’s announcement of its re= location from New York to Tampa also added to the Sun Belt office wins duri= ng the quarter.

The tech sector had m= ade up an average of about 15% of leases since 2010 but accounted for less = than 10% of last year’s activity, JLL said. Now, the sector is making= a comeback, adding to increases in Q3’s volume even as financial and= legal firms dominate leasing activity, the brokerage said.

Sublease availability also fell by 13% over the quar= ter thanks to decisions like Amazon’s primary care subsidiary One Med= ical and software company SAS removing spaces they had previously put up fo= r sublease. Sublease vacancy fell to 2.9% nationally.

<= span style=3D"font-size: 15px;">Asking rents showed minimal growth, however, increasing by= just 0.3%. And the sector's challenges could continue as capital conti= nues to target other asset classes, the report warned.

= “Investors’ return requirements have widened relative to ot= her property types, meaning that forecasted cash flows will have to be even= stronger to allow office developers to procure capital,” JLL said in= the report. “However, fully committed projects or developments in ex= tremely strong micro markets may see progress earlier if financial projecti= ons are particularly compelling.”

Jeffrey A. Tabor – Founder/CEOJeff@JeffTaborGroup.com
JeffTaborGroup.= com
(800) 507-6673
RE License # 01015287

Connect w= ith me on LinkedIn: Jeffrey A. Tabor

Jeff Tabor Group=C2=A0| 501 W. Broadway, Suite = 800=C2=A0| San Diego=C2=A0| CA | 92101

Unsubscr= ibe | =20

--50197d9c768583a59732985da488cc1067ebaf44e14cc23bf8ca84c910b0 Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset=utf-8 Mime-Version: 1.0

=20

Je= ffrey A. Tabor – Founder/CEO
Jeff@JeffTabo= rGroup.com
JeffTaborGroup.com
(800) 507-6673
RE= License # 01015287

Connect with me on LinkedIn: Jeffrey A. Tabor
<= /span>

Office Availability= Declines For First Time In Half A Decade

Tenants= have been scooping up office space at an accelerating rate over the past f= ew quarters.

But the office market reached an important tu= rning point as Q3 came to a close, with the past several months marking the= first time in five years that national availability levels for office buil= dings declined, according to JLL.

The availability rate fell 41 basis poi= nts during Q3 as net absorption swallowed 8M SF across the country. That re= presented a 10% improvement from Q2, a JLL report stated.

“The peak and decline of total availability in the U.S.= office market was a significant milestone that reflects a broad tightening= of the market,” JLL wrote in its analysis, predicting that vacancy l= evels will continue to go down over the next six months as signed leases tu= rn into occupied office floors.

The s= ector reached the milestone despite existing tenants reducing their space n= eeds as leases expire. A total of 53 tenants signed for less space than the= y previously occupied in Q3, and the 10 largest contractions represented 1.= 9M SF in occupancy losses.

But the en= d of the quarter could be a turning point for the beleaguered asset class &= mdash; Leasing activity is expected to keep growing at around 10% annually = through 2025, with demand for trophy and Class-A properties trickling down = into the next-best options as availability declines.

Leasing volume increased in Q2 but grew another 0.4% in Q3 = to 50.4M SF, per JLL. Corporate relocations in gateway and secondary market= s boosted Q3’s volumes, especially in Sun Belt office markets, which = saw leasing growth of 9.4% quarter-over-quarter.

Chevron, SpaceX, social media platform X, Verily Biosciences, C= anoo, and Koya Medical all announced plans to move their headquarters from = California to Texas. Foot Locker’s announcement of its relocation fro= m New York to Tampa also added to the Sun Belt office wins during the quart= er.

The tech sector had made up an av= erage of about 15% of leases since 2010 but accounted for less than 10% of = last year’s activity, JLL said. Now, the sector is making a comeback,= adding to increases in Q3’s volume even as financial and legal firms= dominate leasing activity, the brokerage said.

Sublease availability also fell by 13% over the quarter thanks t= o decisions like Amazon’s primary care subsidiary One Medical and sof= tware company SAS removing spaces they had previously put up for sublease. = Sublease vacancy fell to 2.9% nationally.

Asking rents showed minimal growth, however, increasing by just 0.3%= . And the sector's challenges could continue as capital continues to ta= rget other asset classes, the report warned.

&ldquo= ;Investors’ return requirements have widened relative to other proper= ty types, meaning that forecasted cash flows will have to be even stronger = to allow office developers to procure capital,” JLL said in the repor= t. “However, fully committed projects or developments in extremely st= rong micro markets may see progress earlier if financial projections are pa= rticularly compelling.”

Jeff Tabor Group=C2=A0| 501 W. Broadway, Suite = 800=C2=A0| San Diego=C2=A0| CA | 92101

Unsubscribe |= =20

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