Commercial Investment Real Estate May/June 2016 | Page 9

Lowest 2016 Multifamily
Vacancy Rates
What Offce
Tenants Want
Amenity space has grown from 3 percent
of the available square footage to 10 to 12
percent of space in ofces. Here are some
of the most requested amenities.
< 3 %
1. Boston
2. Sacramento, Calif.
3. Northern New Jersey
4. Portland, Ore.
5. Minneapolis-St. Paul
Source: Marcus & Millichap
1. Fast entry: reliable elevators,
effcient security
2. Food: healthy options in the building
3. Common space: rooftop decks,
lounges, game rooms
4. Fitness centers: convenient
exercise space
5. Commuting options: walking,
public transportation, biking; bike
storage rooms
6. Wi-Fi that works: It’s a deal breaker.
Should hotel owners and investors fear Airbnb? Probably, if they
have assets in certain markets, says a CBRE Hotels report. By
comparing the growth of Airbnb and its average daily rates in
specifc markets, CBRE determined that hotels in New York, San
Francisco, Miami, Oakland, Calif., and Oahu, Hawaii, were most
at risk from Airbnb growth. “It seems reasonable that Airbnb
will impact hotels in two ways,” says R. Mark Woodworth, senior
managing director of CBRE Hotels. “For existing hotels, the
growth of average daily rates will most likely be curtailed. Te
fuid nature of Airbnb’s supply suggests that traditional hotel’s
historic price premiums realized during peak demand periods
will be mitigated. Te other impact may be on new hotel construc-
tion. Airbnb may be an impediment to traditional hotel construc-
tion and could reduce traditional hotel supply growth in many
markets.”
From October 2014 to September 2015, users spent $2.4 bil-
lion on Airbnb lodging, according to CBRE, with more than
55 percent of that amount spent in fve markets: New York, Los
Angeles, San Francisco, Miami, and Boston. But consumers take
note: Airbnb is not always the lowest price option. Afer studying
59 U.S. cities, encompassing 229 submarkets, CBRE determined
that Airbnb’s average rate was $148.42 — 25 percent higher than
the average hotel rate of $119.11 reported by STR.
Source: NAI Global
Airbnb Competition
CCIM.com
May | June | 2016
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