Key Take Aways
• Office market is still slow – more and more subleases are coming onto the market – competing with landlord’s offering lower rents and offering significant concessions.
• Industrial market remains strong with several build-to-suits underway.
• The pendulum continues to swing from office users needing more space to accommodate social distancing to giving up 20-50% to accommodate working from home.
• Single family and multi-family market remains strong and increasing in suburban markets; but a flight out of rural areas due to limited infrastructure (high speed internet).
• The engineering world is seeing a lot of infrastructure work; lots of entitlement work
• On the accounting front, new proposals are coming in at same pace as previous years; Advisory side is coming back.
• Banks are continuing to close deals that started pre-Covid. New owner-occupier deals are happening in the medical field and with specialized businesses. Banks are also seeing lots of partner buy-ins / buy-outs in the medical field.
• Higher Education folks are scrambling with 4Q20 and 1Q21 seemingly quite challenged.
• Mid-sized contractors are having staffing challenges with bringing in skilled project managers which is impacting their ability to perform.
• Multifamily rents still holding up – there is some concern about what happens when PPP money and additional unemployment goes away.
• Ten-X has been seeing some hotel deals and increase in demand for suburban offices and medical offices.