Last Thursday evening the CBRE|Buffalo team released its 2016 Buffalo MarketView reports to a jam-packed crowd of real estate professionals, economic developers and municipal officials from across Western New York at One Seneca Tower.
CBRE|Buffalo’s MarketView reports represent the most detailed analysis of the current state of commercial real estate in the region. The reports investigate costs, availability, absorption, construction and other critical data that Invest Buffalo Niagara uses to inform and recruit companies to expand their operations to Buffalo Niagara.
Managing Director Shana Stegner provided welcoming remarks and introduced Buffalo Mayor Byron Brown who provided an update on the City’s engagement with Douglas Development and its “visionary” owner, Douglas Jemal. Mr. Jemal spoke briefly to introduce a short video, which detailed Douglas Development’s credentials and completed projects in Washington DC and its vision for One Seneca Tower.
Following the video presentation, the CBRE|Buffalo team presented their reports on the local commercial real estate scene across four sectors.
Sarah Cashimere-Warren discussed positive trends for the local office market, with vacancy down 1.0% to 12.5% and average rents in the central business district hovering at an affordable $22-$26/SF for Class A office space and $16-$20/SF for Class B office space. The data show lease terms extending in average length, a positive sign of tenant confidence.
Robert Starzynski shared an overview of the multifamily residential market which saw $147 million in sales with a transaction volume of 185, the highest annual total for the market since the recession of 2008.
Lida Eberz announced an industrial vacancy rate of 4.6%, up one percentage point from the previous year. The local vacancy rate is below that of nation (8.2%) for the twelfth consecutive year. Average sales prices for industrial space varied from $26.93/SF for purchases and $5.86/SF for leases. The local industrial market shows no signs of weakening and there continues to be land on which to build for industrial customers seeking build-to-suit options.
Michael Clark offered positive retail market news across the region, specifically in the City of Buffalo. Available retail inventory is being in-filled, and the region is still a low-cost area for retailers and restaurateurs to do business. The future of the Boulevard and Eastern Hills malls are still unknow, but if priced correctly, should not lay vacant for long, if at all.
The CBRE|Buffalo MarketView reports are available for download on our website: http://buffaloniagara.org/RealEstate/MarketViewReports