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Insights + Trends + Opportunities 4Q13

Date post:18-Jan-2015
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"Insights + Trends + Opportunities" is a quarterly publication by Transwestern. Each issue contains a message from Transwestern leadership, an economic outlook by Transwestern's research affiliate, Delta Associates, a tenant and landlord article on various topics, as well as a development article.

2. IN THIS ISSUE... DRIVING OFFICE DEMANDEmployment Growth and Commercial Real Estate Investment TrendsINVESTOR BUYING OPPORTUNITYRising Interest Rates Expected to Trigger Sale-Leaseback, Net-Lease Sale OptionsEMPOWERING LEASE DATA Lease Administration Boosts Tenants Bottom LineTHE CLASS A EVOLUTIONDevelopers Further Advance Office Buildings to Attract Savvy Tenants 3. DRIVING OFFICE DEMANDEmployment Growth and Commercial Real Estate Investment Trends PAYROLL EMPLOYMENT CHANGE Certain sectors of the labor market impact real estate investors Office-using sectors most likely to drive additional leasing activitySectors that tend to be lower-wage and drive demand for apartmentsProfessional/Business Services Leisure/Hospitality Retail Trade Education/Health Construction Financial Services Wholesale Trade Manufacturing Transportation Mining/Logging Other Services Information Utilities Government www.transwestern.net = 15,000 employee change4Q2013INSIGHTS + TRENDS + OPPORTUNITIES 4. PAYROLL EMPLOYMENT CHANGE BY PERCENTAGEFinancial Services 1.2%Retail Trade 2.5%Wholesale Trade 1.5%Construction 3.3%Education / Health 1.6%Transportation 1.2%Other Services 0.7%www.transwestern.net Manufacturing 0.5% Information 0.6%Leisure / Hospitality 3.2%Professional / Business Services 3.6%Mining/Logging 5.5%4Q2013INSIGHTS + TRENDS + OPPORTUNITIES 5. INVESTMENT SALES VOLUME Year-over-year national office sales volume has risen each month since February 2013, while investment in apartment product since the spring has been fairly consistent with last year. 600 500Ofce Apartment400 300 200 100 0Sep 13Aug 13Jul 134Q2013Jun 13May 13Apr 13Mar 13Feb 13Jan 13www.transwestern.net Dec 12Nov 12Oct 12-100INSIGHTS + TRENDS + OPPORTUNITIES 6. INVESTOR BUYING OPPORTUNITYRising Interest Rates Expected to Trigger Sale-Leaseback, Net Lease Sale Options REAL ESTATE LIQUIDATION With interest rates on the rise (below), many owner occupants are considering liquidating real estate assets to free up capital, presenting an attractive sale-leaseback investment opportunity3. www.transwestern.net January 2013May 2013October 2013 4Q2013INSIGHTS + TRENDS + OPPORTUNITIES 7. EMPOWERING LEASE DATA Lease Administration Boosts Tenants Bottom LineINFORMING ON LARGE-SCALE BUSINESS STRATEGY Corporate executives have begun tapping lease administrators on internal audits, budgeting, acquisitions and a variety of corporate projectsINVOICE EVALUATION Lease administrators can save clients thousands of dollars through common area maintenance operating expense reconciliation One Transwestern client saved $500,000www.transwestern.net 4Q2013INSIGHTS + TRENDS + OPPORTUNITIES 8. THE CLASS A EVOLUTIONDevelopers Further Advance Office Buildings to Attract Savvy Tenants THE EVOLUTION Class A office space is changing, including the type of building, specific design characteristics and location7.4 MSFTHE SUBURBAN MIGRATION Features that were traditionally reserved for elegant high-rise towers in high-density downtowns are becoming standard issue on a majority of suburban office projects12.1 MSFMillions of square feet under development or renovation 11.8 MSF www.transwestern.net 4Q2013INSIGHTS + TRENDS + OPPORTUNITIES 9. CONVERSATION READ THE FULL VERSIONINSIGHTS + TRENDS + OPPORTUNITIES 4Q 2013JOIN THE CONVERSATION www.transwestern.netTranswestern is a privately held real estate firm specializing in agency leasing, property and facilities management, tenant advisory, capital markets, development, research and sustainability. The fully integrated global enterprise leverages competencies in office, industrial, retail, multifamily and healthcare properties to add value for investors, owners and occupiers of real estate. Transwestern facilitates better decision-making for clients by combining penetrating local market intelligence and macro-market research through its affiliate, Delta Associates. Transwestern has 34 U.S. offices and assists clients through more than 180 offices in 40 countries as part of a strategic alliance with Paris-based BNP Paribas Real Estate. 2013 TRANSWESTERN

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