2A — July 13 - 26, 2018 — M id A tlantic
Real Estate Journal
www.marejournal.com
Mid Atlantic Real Estate Journal
Mid Atlantic R eal E state J ournal Publisher, Conference Producer . .............Linda Christman AVP, Conference Producer ...........................Lea Christman Associate Publisher ......................................... Steve Kelley Associate Publisher ........................................... Kim Brunet Associate Publisher ...................................... Marisol Chase Senior Editor/Graphic Artist ..........................Karen Vachon Office Manager ...............................................Kerrin Devine Contributing Columnists ............. Jason Price, Cushman & Wakefield Mid Atlantic R eal E state J ournal — Published Semi-Monthly Periodicals postage paid at Hingham, Massachusetts and additional mailing offices Postmaster send address change to: Mid Atlantic Real Estate Journal, 350 Lincoln St., Suite 1105 Hingham, MA 02043 USPS #22-358 | Vol. 30, Issue 13 Subscription rates: $99 - one year, $148 - two years, $4 - single copy REPORT AN ERROR IMMEDIATELY MARE Journal will not be responsible for more than one incorrect insertion 781-740-2900 | Fax: 781-740-2929 www.marejournal.com The views expressed by contributing columnists are not necessarily representative of the Mid Atlantic Real Estate Journal
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Occupier Trends: Demographics and Talent Driving Space Decisions C Jason Price ushman & Wakefield has released a new re- port, Space Matters, which dives deep into four areas of importance to today’s tenants and landlords. It ana- lyzes the national trends be- hind office density, amenities, parking and concessions. The firm’s New Jersey research team assembled regional com- parison for one of these vital benchmarks. “With unemployment below 4%, companies are focusing on making smart decisions about their space – decisions that keep their employees happy and engaged,” said Revathi Greenwood, Americas Head of Research at Cushman & Wakefield. “Landlords are playing a critical role as well – ensuring their buildings stay competitive with a good mix of amenities, and afford- able parking, and of course concessions where necessary to attract top tenants.” The national report exam- ines in detail four top trends in office space: • Office density : Occupi- ers have been allocating less
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square footage per employee, but that trend is starting to slow down as businesses grap- ple with the right balance of personal, private, communal, and break space. • Amenities : Common ame- nities—such as fitness cen- ters and cost-effective food options—still remain very important. However, there is large opportunity for growth in how technology amenities are leveraged by occupiers and landlords. • Parking : In many urban sub-markets parking supply is a challenge. Prices have been increasing, and occupiers are looking at creative options to meet the challenge. Also looming in the future is what impact autonomous vehicles may have on parking demand. • Concessions : Free rent and tenant improvement allow-
ances increased over the past year, but gains were driven by gateway markets in 2017. This trend will spread and some secondary markets will soften as absorption slows down and/ or new supply comes online. NEW JERSEY CONCESSIONS According to Cushman & Wakefield’s New Jersey re- search team, the Garden State ranked high among U.S. mar- kets experiencing increased concessions in 2017. The re- gion’s 13.5% year-over-year jump is considerably larger than the national average and was only outpaced by San Jose/Silicon Valley and three gateway markets (New York, San Francisco, and Boston). “Free rent grew from an average of $13 to $14 psf last year, and TI allowances continued on page 3A
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