The Ida Group

2016 Archive

Fourth Quarter

Research Reports

Rising Construction Resets Buyer Expectations; Pricing Still Robust

SAN FRANCISCO MULTIFAMILY - The San Francisco economy has seen a powerful uptrend in business activity and employment growth throughout the current business cycle. As a result, average incomes and job creation have soared, creating substantial demand for both apartments and single-family homes.

Optimistic Economic Outlook and Strong Rents Sustain Buyer Enthusiasm

OAKLAND MULTIFAMILY - The Oakland multifamily market will strengthen this year as ongoing corporate relocations and an expanding local economy bolster underlying demand for apartments. Businesses have sought locations in the East Bay as high office rents in other parts of the Bay Area leave many firms looking for a less expensive alternative.

Real Estate Investors Re-Evaluate Transactions Amid Shifting Landscape; Strong Performance Supports Extended Outlook

SPECIAL REPORT - The unanticipated results of the presidential election sparked a shift in several macro-level dynamics that have begun to ripple through the commercial real estate market.

Third Quarter

Research Reports

Growing Space Demand Driving Office Sector As Developers Practice Restraint

September 14; OFFICE SPOTLIGHT - Positive trends persist in office sector. The U.S. office vacancy rate declined in the first half of the year and rents rose to maintain momentum in the office sector.

Dearth of Completions Leaves Retailers Awaiting 2017

SAN FRANCISCO RETAIL - Steady hiring by [several of the largest companies in the United States] has created tremendous demand for local housing and dramatically boosted operating rents at retail storefronts from increased traffic. As a result, retailers have been opening new storefronts throughout the cycle, trimming vacancy to one of the lowest levels ever recorded.

OCCupancy and Rents Rise as Economy Builds Steam

OAKLAND RETAIL - Property operations in the East Bay retail market continue to post strong improvements as intense demand absorbs elevated levels of construction. The exorbitant cost of real estate in the rest of the Bay Area acts as a steady tailwind for the local economy.

Historically Low Interest Rates Drive Buyer Acquisitions

SAN JOSE RETAIL - Major economic trends in technology have fostered an incredible expansion in the San Jose labor market as local organizations of all sizes compete for engineering and other business-related talent. This trend has resulted in the formation of thousands of households in the metro, boosting demand for retail establishments.

Foreign Investment in U.S. Real Estate Remains Elevated; Capital Preservation and Stability Often Prioritized Over Yield

FOREIGN INVESTMENT - Global financial market volatility, weak foreign economies, low alternative investment yields and a variety of factors creating uncertainty have reinforced the advantages of direct investment in U.S. commercial real estate.

Second Quarter

Research Reports

Vacancy Tightens to All-Time Low; Investors Ease Bullishness

SAN FRANCISCO OFFICE - Positive economic momentum will carry the San Francisco office market forward this year with occupancy and rents set to achieve record-breaking heights amid a storm of development. Strong property fundamentals coupled with historically low interest rates will sustain investor demand this year.

Affordability and Organic Business Growth Propel Oakland Office Market

OAKLAND OFFICE - The Oakland office market is poised for another year of robust growth as a strong local economy and relative space affordability encourage corporate expansion and relocation. Soaring office prices in other parts of the Bay Area have left many firms eyeing Oakland as a lower-cost alternative.

Historic Supply Growth Earmarked for Large Corporations

SAN JOSE OFFICE - Powered by the growth of some of the largest technology firms in the world, the San Jose office market has experienced tremendous vacancy tightening and asking rent advancement over the current cycle.