With an increase of 80 points from 1Q2011 and a rank of 86th out of 132 U.S. metro markets nationwide the Ft. Lauderdale office market has not changed much throughout the second quarter. The vacancy rate currently sits at 19.9% similar to the rates of Oakland/East Bay CA at 19.3%, Denver, CO 19.8%, Naples, FL at 20.2%, and Cincinnati, OH at 20%.
We believe the state of the office market will remain at its current position throughout the upcoming years even as the economy improves. Reason being is because as businesses become more efficient through advances in automation and technology they are able to run with few employees; and given the reduced amount of employees there is less demand for office space. There has also been a trend of businesses lowering their occupancy costs by choosing office designs with less square feet of occupancy per employee.
For additional information on the South Florida office market including offices for sale or lease, as well as tenant representation Contact Us.
Infromation provided by our Local Fort Lauderdale OfficeFinder Rep.Office Vacancy Rate
Some property owners of commercial real estate may not understand the reasoning behind why a tenant who has been renting a retail or industrial space for some time, perhaps 5 or 10 years, would want to include a commercial real estate broker tenant representative as an advisor when it is time to renew the lease, change the lease to include an expansion, or agree upon some other transaction with the landlord.
If you think about it, how is a renewal any different than an initial lease transaction? Does the commercial lease not need the same expertise, market and lease knowledge, and experience that can only be assured by engaging a professional advisor? Craig Trbovich, Sales and Leasing Advisor at Commercial Properties, Inc. commented in a LinkedIn Discussion Group, “Even if you have real estate and contract experience, it’s current market knowledge that will be invaluable. And being in the trenches every day is the only way to be current.”
Today, it is critical for top corporate executive to provide the company’s stakeholders with only the best financial decisions to ensure maximum profitability. Yet, a small business or corporate executive is not an expert on negotiating leases for commercial real estate. A professional advisor can help the tenant best determine the answer to questions such as:
· How large should the leased facility be to need the tenant’s needs?
· Exactly what configuration of space bets suits the business’s needs?
· What interior improvements need to be performed and who will pay for these changes?
· What is the best length of lease term is optimal for the tenant?
· Should the tenant secure rights for expansion or consolidation?
· What other options should be negotiated into the lease?
· Can a period of free rent be rolled into the negotiations?
· Is the landlord and building in good financial condition?
· Should relocation be seriously considered?
The owner of the commercial real estate being leased would probably quite pleased if the leasing business does not want a tenant representative because negotiations will likely be very easy and the landlord will get options that benefit them rather than the business. Daniel Rudd, Executive Vice President and Office Broker at Colliers International states, “It is short sighted for a tenant not to have representation and the tenant is ceding the landlord an incredible amount of leverage.” With a broker, the tenant can be assured they have someone fighting for their right and making sure their best interests are covered.Lease Negotiations , Office Leasing Tips , Office Relocation , Office Space Negotiations , Tenant Representation
Regus, the largest provider of executive suites, has reported their first half earnings for 2011.
Key statistics are as follows:
- Profit for the period 23.3 £m vs. a loss of 7.5 £m for the same period last year.
- Revenues up 9.7% to £565.6m (2010: £515.5m)
- Cash from operations up 49.0% to £70.2m (2010: £47.1m)
- Net cash of £197.8m (Year End 2010: £191.5m)
- Earnings per share of 2.5p (2010: (0.8p)
- Mature occupancy at a record level of 86.7% - benefitting from improved sales and marketing
- 12.7% increase in total customer numbers to 904,086 (2010: 801,938) of which more than 700,000 are home or mobile workers
Commenting on today's announcement Mark Dixon, Chief Executive of Regus plc, said: "We are pleased with the good strategic and financial progress the business is making at a time of prolonged economic uncertainty, with revenues up 10% and profits up over 35%.
Our strong performance drove cash from operations up 49% to £70.2m and meant that our expansion for the half was entirely self-funded, with cash at the end of the half higher than at the end of 2010. While we acknowledge the challenging environment, we continue to expect further improvements in revenues and cash from operations, as we continue to invest in growth.
It is the robustness of Regus' mature centres that enables this substantial ongoing investment in future growth. As we enter the second half of the year, Regus remains well-positioned to capitalise on these opportunities and is on track to deliver a full year performance in line with our expectations."
“The momentum with which the business ended 2010 has continued into 2011. As such I am pleased to report on a half year of solid revenue growth up 9.7% to £565.6m (2010: £515.5m) with EBIT1 growth up 35.3% to £13.8m (2010: £10.2m). Excluding the extra costs incurred from growth the EBIT from our mature business increased by 46% to £37.7m (2010: £25.8m).”
All in all this is a good showing in a tough market. Perhaps it is an indicator that the global office market is improving.Executive Suites , Flexible Workspace
Like the rest of the nation Houston, Texas has been hit hard by the recession. Even with the economy taken into account, it remains one of the fastest growing metropolitan areas in the nation. More than five million people live in the Greater Houston Metro area, which encompasses all or parts of 10 different counties. With the great weather year round and nearby beaches of the Gulf Coast, it is a great city in which to locate any commercial venture.
Houston actually began feeling the recession one year after the rest of the nation. Recovery is taking place, but as with many other areas, it remains sluggish. However, commercial real estate has benefits from core business growth, disciplined new development, and a great business environment, bringing businesses into the area. The workforce available to ventures both large and small offers plenty of trained professional as well as blue collar workers, making this region perfect for any type of business to locate and grow.
Our local Houston OfficeFinder rep tells us, “Despite the consequences of the recession, businesses forge ahead and some are experiencing banner years. National and international investors recognize Houston as an international, first-class metropolis. Energy has always been our main driver but Houston also has the Texas Medical Center and the Port of Houston as strong underpinnings for our local economy. Many authorities have cited the Panama Canal expansion as the next big step in the growth of goods flowing into and out of the Port of Houston.” Our local office rep has served the Houston commercial real state market as a licensed agent since 1985, assisting businesses and association with relocation, renewal, expansion, and disposition of office and industrial space, so he has his finger on the pulse of the Houston market.
The total commercial office inventory in Houston currently encompasses approximately 266 million square feet with a vacancy rate of 13.3%, with nearly 1 million square feet of net absorption in the second quarter of 2011. Class A properties account for the lion’s share of new leasing with positive absorption in the first and second quarters of 2011. Our local rep said, “While we have had some foreclosures, investors and users have typically rushed to the buying opportunities with deep pockets and a plan.” Recovery from the recession is clearly well on its way in Metro Houston.
Some of the major news in commercial real estate include:
• Core Real Estate LLC purchased the former Minute Maid facility at 2000 St. James Place from Wachovia Bank after the bank took back the 335,000 square foot office building from a local partnership. Core then leased the entire building to Weatherford International.
• Lincoln Property Co. purchased Energy Crossing I from M&I Bank., on behalf of a public pension fund. The 240,000-square-foot office building is located in Houston’s Energy Corridor. The new ownership recently leased 41,000 square feet to an energy-related company.
• Chevron recently purchased a 50-story 1.3 million-square-foot downtown office tower from Brookfield Office Properties. Chevron had been leasing the building. The sale price was reportedly $340 million, or about $260 per square foot.
• In a separate transaction, Brookfield Properties Corporation acquired Heritage Plaza, a 53-story, 1.2-million-square-foot trophy office tower in Houston’s central business district, reportedly for $321.5 million.
• ExxonMobil has finally announced the development of a new office campus in north Houston. The 385-acre site is near the intersection of I-45 and the Hardy Toll Road. Company employees currently working in a variety of locations will be consolidated into the new facility upon completion. Full occupancy of the development is expected by 2015.
• Coventry Development Corp. will invest approximately $10 billion in their Springwoods Village development. Springwoods Village will be a 1,800 acre master-planned community near the new Exxon Mobil campus.
Our local rep went on to say, “Even the former Astroworld site appears to be poised for new development. The Mallick Group purchased this 104 acre site in 2010 after the Astroworld closure in 2005. Established companies are cautiously locking into today’s rental rates and new companies are looking to find short term, As-Is, opportunities. Every business tenant has choices, but occasionally, their “short list” is shorter than the average business person would believe from reading the headlines.”
If you are considering starting a new business venture or wish to add a satellite location to your already-established venture Houston, Texas, is a great place to choose. With the end of the Space Shuttle program, many high tech workers from nearby Johnson Space Center are readily available and skilled trade crafts persons for any commercial venture can be found. With the growing recovery, much of this labor will be consumed in the coming years, but there are many young people entering the employment in every area to continue to feed the staff required to many any commercial venture a success.
You can contact our Houston OfficeFinder Rep for help with your commercial office and industrial need at Officefinder.com. He will be happy to help you find the perfect home for your business.
Houston Office Space , Office Space