Data Center Snapshot


The U.S. data center market exhibited a robust year of leasing in 2014, building from leasing momentum established late in 2013. The most vibrant markets were Dallas and Northern Virginia, with each geography tallying nearly 40 MW of new data center leases. Dallas, in particular, captured some of the largest wholesale deals in the country in 2014, including: LinkedIn (7 MW), T-Mobile (4.5 MW) and State Farm (6+ MW).

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Prices Have A Say In Mexico City’s Office Market

Mexico City

What makes a real estate market attractive? Is it high profits for developers? Highly competitive prices for tenants and demand-side investors?

Naturally, these are significant drivers for market activity, but in both cases basic economics prevail: People are willing to take a higher risk in exchange for higher returns.

Now, the tricky part is how to discern when risk is being properly rewarded. More rigid, slow-to-adjust markets are generally harder to read, which correlates with higher risk.

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Atlanta’s Industrial Market Sees Record Construction Activity

Atlanta Industrial Construction

Industrial construction activity in Atlanta increased dramatically in 2014 ending the year with more than 15 million square feet of inventory under construction, a new record for the market. Although build-to-suit development accounted for the majority of industrial construction activity in recent years (an average of 76% between 2009-2013), 2014 marked a major shift in this trend as speculative construction activity took over, accounting for almost 60% of total inventory under construction. There were 19 speculative projects underway as of 2014 year-end totaling nine million square feet. All of these are expected to deliver in 2015.

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San Francisco Jobs Hit Record High

SF Jobs

According to the latest job numbers released by the State of California Employment Development Department on November 21, total jobs in the San Francisco Metropolitan Division (comprised of San Francisco, San Mateo and Marin counties) continue to climb ever higher – the area, in fact, hit a record high number of jobs in October with 1,125,300 now employed, blasting past the previous high of 1,117,700 recorded in December 2000 The unemployment rate for the three-county division stood at 4.2% in October, equal to the September figure though down a rather sharp 110 basis points from one year earlier.

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Black Friday Comes to Atlanta


C&W’s Retail Research group recently released some facts and figures on Black Friday weekend in the United States. In conjunction with this nationally focused piece, Atlanta’s local research team has provided some data points focused on the upcoming annual shopping event in Atlanta. Since 2006, the national average spending per shopper over Black Friday weekend has increased at an annual rate of 1.8%. With Atlanta’s retail market in recovery mode, a number of new retail shopping experiences in Atlanta have entered the construction pipeline over the past two years, many of which are delivering new retail space just in time for the 2014 Black Friday weekend.

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Chaos At The West Coast Ports: Logistical Nightmare As Congestion Reaches Historical Proportions


The problem, which began in late summer, initially stemmed from a shortage of truck drivers and the chassis that they use to haul containers to and from the Los Angeles shipping terminals. As peak season has begun, there are not enough chassis to handle the peak season container volume. Those shortages had occurred as U.S. import container volume was surging (up 6% year-over-year from January-October at the So Cal Ports). Also, the increase of massive container ships that are deluging the docks with cargo have been pushing the limits of the terminals’ capacity to work ships in a reasonable time. Increased safety inspections in Southern California have also increased average truck turn times to two to three hours at terminal gates and yards. Combine these with rail- and drayage-related delays and the growing tension between U.S. West Coast dockworkers and their employers and we have a perfect storm that has resulted in the worst congestion in more than a decade.

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Black Friday By The Numbers

Black Friday

My family and I recently moved into a new house that is walking distance to our superregional mall. That means that I can walk through the traffic jams to witness one of the great retail spectacles of the modern era—Black Friday. In many households, a firmly established tradition of the Thanksgiving holiday weekend, right up there with football and pumpkin pie, is to head to the mall.

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Speculative Construction: Northeast Perspective


For the first time in over 10 years, a significant quantity of speculative construction is taking place in many U.S. cities. Developers have demonstrated renewed confidence in market fundamentals by starting speculative projects in the northeast cites of Boston and New York.

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The Corporate View of Sustainability


Sustainable real estate practices have become commonplace for any occupier that leases, owns, or operates corporate facilities. While the degree of emphasis placed on sustainability varies by organization, and is often tied to larger enterprise goals and objectives, a discussion about corporate social responsibility and being “green” is part of almost every occupancy decision made today.

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Vacancy Rises As São Paulo Demand Grows


Over the last year and a half, São Paulo vacancy has jumped 3.1 percentage points for all CBD class A properties. Historical analysis of vacancy rates show that 15% is the market’s equilibrium point, so in second quarter 2014 São Paulo officially became a tenant’s market.

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