Commercial Investment Real Estate November/December 2017 | Page 8

MARKET
TRENDS
Nontraded REITs
Other (e.g., high net worth
individuals and corporations)
7%
4% 2% Institutional investor
Private Equity
Dominates U.S.
Hotel Investors
12%
Hotel owner/operator
14%
Public REITs
25%
Source: JLL
Top 10 Markets for Office
Reflecting Job Growth
Resurgence of
Suburban Office
Cities in the South and Southwest dominate the rankings.
Q2 2017 Office-Using Jobs, YOY Growth %
Atlanta
5.09%
Orlando, Fla.
5.04%
Dallas
4.65%
Charlotte, N.C.
4.22%
Raleigh, N.C.
4.03%
Nashville, Tenn.
3.75%
Phoenix 3.43%
Kansas City, Mo. 3.40%
Portland, Ore. 3.06%
Tampa, Fla. 3.05%
Source: CBRE Research
6
November | December 2017
• Demographics Support Suburban
Demand: Nearly 66% of all households
are located in the suburbs.
• Suburbs Evolve for Millennials:
Many suburban offices are transforming
their environments through walkable
spaces, entertainment, and retail and
restaurant options.
• Suburban Absorption Strengthens:
Vacancy is lower than the national rate
at 15 percent vs. 16 percent, and net
absorption has been vigorous.
• Cap Rates and Pricing Reflect Upside:
First-year returns up to 100 basis points
higher show the potential for higher net
operating incomes.
Source: Marcus & Millichap
COMMERCIAL INVESTMENT REAL ESTATE
Developer
36% Private equity