The real estate news for the first half of 2016 is generally good. As has been the case for a few years now, multifamily residential is the hot product, but office activity has been solid and medical and medical-related uses are surging again after a brief quiet period.
“Though the final numbers are not yet in, the second quarter of the year seems to be continuing the positive trend seen in Q1,” says Karolina Pardo-Alexandre, research manager for Newmark Grubb Knight Frank. “There are a couple of major leases that are close to signing or are selecting their short lists. When and if one or both of these are finalized, it is anticipated that there will be a significant improvement in the Central Business District velocity and vacancy statistics. But the market is really a ‘tale of two counties’ with the large overhang of former corporate headquarters space in the Northern submarket dragging down the overall occupancy numbers. We are also seeing a resurgence in leasing activity for medical and for entities providing services related to the medical community. Overall, the market is healthy, repurposing of existing buildings continues to reduce available inventory, and average deal sizes continue to grow.”