Cushman & Wakefield Reports Finds Demand for Florida Office Space Spurring Statewide Rent Growth

Larry Richey

ORLANDO, FL – Cushman & Wakefield announced the release of its Mid-Year 2016 Florida Statewide Rental Report (FLRR). 

This report highlights current office asking rates in major markets across the state and compares them to rates documented at the height of the last real estate cycle (2008–09).

Key findings in the Mid-Year 2016 FLRR include:

The latest jobs report shows that Florida added 244,500 new jobs over the past year, an increase of 3.0 percent. Office-using employment increased by more than 60,000 jobs, driving demand for office space.

Statewide, full-service asking rental rates for Class A office space increased 6.6 percent over the past year to $32.27 with four of six markets posting rental gains of more than $2.00 per square foot (PSF) over the past four quarters.

       

Statewide, full-service asking rents for Class A space have surpassed rent peaks from the last cycle.

Since the end of 2009, Florida’s Class A office market has seen 11.3 million square feet of available space absorbed by new and existing tenants, representing a 6.8 percentage point drop in the direct vacancy rate through the first half of 2016.

Cushman & Wakefield continues to be bullish on the office market statewide,” said Larry Richey, Managing Principal and Florida Market Leader. “In the short term, rents jumped significantly on ever-tightening availability options.

“We are acutely challenged in several markets in providing space options for larger tenants, especially in Class A space in the CBDs. The shift in demographics to more urban, live-work-play environments and tenant demand should build confidence with developers and lenders for new construction.”

Chris Owen

Florida Research Manager Chris Owen believes the market will remain positive in 2016.

“Supply side constraints in most markets are pushing office market fundamentals close to the record highs from the previous decade,” Owen said. 

“Besides Miami and some smaller projects across the state, the bulk of new major office construction has been build-to-suits. The steady lease up of new construction in Miami indicates, that with the right project, space will be leased.”

The Florida Statewide Rental Report is intended to provide market intelligence for property owners, occupiers and prospects.

 The report documents the gross average asking rate for the market and a short-term indicator noting the year-over-year change in that rate. 

Historical market performance is depicted by a clear and concise up or down indicator. This indicator shows rental rate growth as a percentage as well as the highest asking rent achieved in each market during the last real estate cycle.

Rates are full-service and based on Class A properties. The index gives a macro view of the overall markets and how they compare. It also provides a statewide rental figure and its fluctuation over the past 12 months.

  

For a complete copy of the company’s news release, please contact:

David A. Meyer

Owner

Meyer Media 

+ 1 407 489 7488

david@meyer.media

www.cushmanwakefield.com

@CushWake on Twitter

WoodSpring Suites Plans New Franchised Location in the Detroit MSA

Ron Burgett

Detroit, MI,  Aug. 22, 2016 - WoodSpring Hotels, the nation’s fast growing extended stay hotel brand has partnered with M2B2, LLC to build a new prototype WoodSpring Suites hotel in Wixom, Michigan.

The property will be located between Grand River Avenue and Highway 96 near South Wixom Avenue. This new franchised location is the first of three that M2B2 plans to build in the region.

“When we first approached WoodSpring Hotels to explore building hotels in the Michigan area our intention was to build Value Place hotels,” said Mike Huszti, Managing Partner of M2B2. 

“ Our diverse development group with strong experience in property development were very impressed with the operational efficiencies and very healthy NOI of the brand. It was during our site location process that WoodSpring Hotels announced the new WoodSpring Suites prototype.

“It’s always important for us to not only select the right locations but we also carefully choose the right franchise partners. In M2B2, we are gaining an excellent partner that meets both of these criteria. We’re excited to welcome another top quality development group to our franchises base,” said Ron Burgett, Executive Vice President of Franchise Development & Operations for WoodSpring Hotels.

“The upper midwest has proven to be an area of high guest demand for our brands and we have aggressive growth plans with both corporate and franchised properties in the region.”

For a complete copy of the company’s news release, please contact:

CHRIS DALY

PRESIDENT

DALY GRAY PUBLIC RELATIONS, INC.

620 Herndon Parkway, Suite 115 | Herndon, VA 20170

Main: 703-435-6293

Mobile: 703-864-5553

chris@dalygray.com | www.dalygray.com

  www.WoodSpring.com.

Solid Rock Group Leads Acquisition of Two Hotels

Charlie Muller

                IRVING, TX,  Aug. 22, 2016—Officials of Solid Rock Group, an investment and advisory firm focused on the hospitality, healthcare and media sectors, today announced that it successfully led the acquisition, in separate transactions, of the 122-room Anza boutique hotel and the 128-room Courtyard Atlanta Airport West on behalf of a private investment group for an undisclosed sum.

 Solid Rock also has been retained to provide on-going advisory and asset management services for the two properties on behalf of ownership.  The deals were brokered by Eastdil Secured, LLC, and Hunter Hotel Advisors, respectively.   

“Our institutional investors, high net worth family offices and sovereign fund clients are seeking highly experienced advisors in this phase of the hotel real estate cycle,” said Charlie Muller, who recently joined Solid Rock as a principal and managing director of its Dallas office.

 “While the outlook for the hotel industry remains positive over the next few years, there are a number of unknowns, such as moderating RevPAR growth, BREXIT and the upcoming presidential election, that can impact investor sentiment of the industry.  Investors seek acquisition candidates that have strong upside, as well as the ability to withstand an economic downturn. 

“As a result, we have seen a significant uptick in the need for acquisition and asset management advisory services.

For a complete copy of the company’s news release, please contact:

CHRIS DALY

PRESIDENT

DALY GRAY PUBLIC RELATIONS, INC.

620 Herndon Parkway, Suite 115 | Herndon, VA 20170

Main: 703-435-6293

Mobile: 703-864-5553

chris@dalygray.com | www.dalygray.com

Lincoln Hires Matt Fergus as Leasing Associate

Matt Fergus

ATLANTA, GA (Aug. 22, 2016) – Lincoln Property Company Southeast (Lincoln) has hired Matt Fergus as a leasing associate based in its Atlanta office.

Fergus joins Lincoln having recently received his bachelor’s degree in business administration with a concentration in real estate from the Terry College of Business at the University of Georgia.

In 2015, Fergus interned as a research associate with Cushman & Wakefield Inc. After successfully completing a six-month internship with Lincoln earlier this year, Fergus has joined the office leasing team, which is headed by senior vice presidents Michael Howell and Hunter Henritze.

In his new position, Fergus will assist in third-party leasing assignments for institutional and private owners, as well as head up lead generation efforts for the team.

“As we grow our leasing team we are continually looking for the next generation of talent and youthful energy to strengthen our platform,” Howell said.

“Matt has demonstrated the skills, talent and aggression that make him an excellent addition to our group,” Henritze added.

For a complete copy of the company’s news release, please contact:

Savannah Durban

The Wilbert Group

404-343-0870

sdurban@thewilbertgroup.com