The U.S. office market absorbed 21.6 million square feet across the last quarter of 2021 and the first quarter of 2022. Office market vacancy rates increased for the 10th straight quarter to start the year, but a look inside the numbers reveals that the completion of new office product is partially responsible.

Source: The NAIOP CRE Sentiment Index
Spring 2022

The NAIOP CRE Sentiment Index for April 2022 is 53, down slightly from September 2021, and below the pre-pandemic range. However, this reading still indicates that respondents expect conditions for commercial real estate to improve slightly over the next 12 months.

The NAIOP Research Foundation released The Development Approvals Index: A New Tool to Evaluate Local Approvals Processes (the Index). The Index provides a systematic method to evaluate and compare approvals processes in different jurisdictions objectively (e.g., without the use of opinion surveys or based on the experiences of a particular individual).

This research brief, authored by Avison Young, reviews historical trends in port activity, local logistics employment, and vacancies, rents and absorption rates in adjacent industrial markets. Building on observations from the historical data, a regression analysis of the relationship between changes in port activity, truck traffic and industrial space absorption demonstrates that changes in import volume have a substantial effect on occupancy in port markets.

The Spring 2022 issue of Development magazine features a cover story on the redevelopment of a 1980s-era office building into a high-end apartment complex. Other features look at the development of a tire-storage facility in Indiana, large-scale multilevel industrial buildings, and the NAIOP Research Foundation’s annual report.

The NAIOP Research Foundation commissioned this report to evaluate the risks and opportunities associated with office building conversions. The author conducted a review of recent publications and market data on office conversions and interviewed developers, architects and other commercial real estate professionals to provide an overview of the key considerations that go into converting an office building to a life science, medical office or multifamily use.

Authors Dr. Hany Guirguis and Dr. Michael Seiler forecast that the total net absorption of industrial space in 2022 will be 401.4 million square feet with a quarterly average of 100.4 million square feet. In 2023, the projected net absorption is 334.1 million square feet with a quarterly average of 83.5 million square feet.

Development and construction of new commercial real estate in the United States – office, industrial, warehouse and retail – generates significant economic growth at the state and national levels. This annual study, published by the NAIOP Research Foundation, measures the contribution to GDP, salaries and wages generated and jobs supported from the development and operations of commercial real estate.

The Winter 2021/2022 issue of Development magazine features a cover story on brownfields redevelopment. Other articles include a look at the global supply chain, the challenges of building for sustainability and promoting diversity in undergraduate and graduate real estate programs.

This research brief draws from a survey of NAIOP members and interviews with developers in tertiary markets such as Western Michigan and Southwest Missouri to examine these differences and their implications for developers and investors.

Best Practices in Cold Storage Facility Development provides practical information for developers, designers, tenants and anyone else interested in knowing more about approaches to build-to-suit and speculative projects.

A demand forecast by the NAIOP Research Foundation is projecting a strong resurgence of the U.S. office commercial real estate market through 2023.

Although office net absorption remained negative throughout 2021, it is gradually climbing toward the positive side of the scale. Total net absorption in the third quarter of 2021 was -5.2 million square feet, back from a near record of -34.8 million square feet at the end of the first quarter of 2021.

The NAIOP Research Foundation has developed a two-dimensional model for evaluating and comparing metropolitan office and industrial markets that simultaneously evaluates multiple market characteristics such as size and risk, avoiding some of the limitations of traditional one-dimensional market rankings.

NAIOP, which has created a commercial real estate industry Sentiment Index, reports that sentiment has increased from April and returned to pre-pandemic levels, according to the results from the Fall 2021 survey.

The Fall 2021 issue of Development magazine features a cover story on NAIOP’s Developer of the Year, Hudson Pacific Properties. Other articles cover second-tier cities and the growth in senior living, and there is a Q&A with author Joel Garreau for the 30^th anniversary of the publication of his influential book “Edge City.”

A new NAIOP Research Foundation report by Maria Sicola, Charles Warren, Ph.D., and Megan Weiner builds on last year’s report on market tier and ranking systems by describing a two-dimensional approach to evaluating and comparing commercial real estate markets. The report examines 15 years of market data to test multiple two-dimensional models for evaluating the 50 largest industrial and office markets in the United States.

Connect CRE article previews a keynote address at I.CON West: The Industrial Conference, Aug. 31-Sept. 1, in Long Beach, California.

Demand for industrial real estate continues to be strong as the long-term trend toward e-commerce (and away from in-store sales) continues with no end in sight. With nearly 100 million new square feet delivered nationally since the beginning of the year, 450 million square feet currently under construction and another 450 million planned, the demand for industrial real estate still outpaces supply.

The summer 2021 issue of Development magazine includes a look at a mass-timber project in Milwaukee, eight key takeaways for CRE as it recovers from the pandemic, tips for developing laboratory properties, and a look at manufacturing reshoring efforts in the U.S.

NAIOP, the Commercial Real Estate Development Association, has selected Hudson Pacific Properties as the 2021 Developer of the Year – the association’s highest honor. The award will be presented during NAIOP’s CRE.Converge conference in Miami Beach this September.

The NAIOP Research Foundation has announced the addition of two new Distinguished Fellows. The Foundation’s Distinguished Fellows program engages leading commercial real estate, economic and public policy experts, helping to bridge the practicing commercial real estate and academic communities.

In its Office Space Demand Forecast released today, NAIOP is projecting a return to positive absorption of office space in the fourth quarter of 2021.

Improving economic conditions have led to an improvement in the NAIOP CRE Sentiment Index, indicating both overall optimism and several ongoing concerns.

The American Society of Business Publication Editors recently awarded NAIOP four awards in the annual Azbee Awards of Excellence for the Mid-Atlantic region. NAIOP received a gold, two silvers and a bronze for Development magazine and the Market Share blog. Check out any award-winning pieces you missed!

Four recipients of its annual Diversity Student Scholarships. The scholarship program supports students who are pursuing a graduate degree in commercial real estate and is a key component of the association’s pledge to advance diversity in the industry.

Ten individuals have been selected as the recipients of the fourth annual NAIOP and Prologis Inclusion in CRE Scholarship for Women and Underrepresented Professionals. The program is designed to prepare a pipeline of women and minorities for development and operations positions in commercial real estate by connecting them with mentors and advancing their industry knowledge.

A NAIOP Research Foundation report released today identifies how technology is making an impact on construction, an industry that had been historically slow to embrace innovation.

The NAIOP Research Foundation commissioned this report to explore emerging construction technologies and their implications for the construction and real estate development industries. The authors draw from interviews with researchers and industry practitioners to evaluate the current benefits and limitations of new technologies.

The Spring 2021 issue of Development magazine features a cover story on creating superior rail-served industrial facilities. Other features look at how COVID-19 vaccines will affect the commercial real estate industry, a case study of an adaptive-reuse project in Portland, Oregon, and the NAIOP Research Foundation's Annual Report.

Your company's participation in the 2021 NAIOP Commercial Real Estate Compensation Survey will help shape the future of commercial real estate. Survey respondents at the overall company level will receive a complimentary electronic copy of the full comprehensive survey report – a $2,500 value!

The NAIOP Research Foundation commissioned the creation of an index that compares development approvals processes in different jurisdictions so that developers can make more informed investment decisions and local governments can benchmark their processes against neighboring jurisdictions.

Total net absorption in 2021 is forecast to be 314.9 million square feet with a quarterly average of 78.7 million square feet.

Respondents to a NAIOP tracking survey of the pandemic’s impact on commercial real estate indicate improving rent collection rates, increased industrial investment activity, and a more positive outlook for employment in their firms. Fewer respondents now expect the pandemic will continue to significantly affect their business operations 12 months from now.

NAIOP honored 11 chapters and seven individuals during the annual Chapter Merit Awards, held as part of the 2021 virtual Chapter Leadership & Legislative Retreat.

New development of commercial real estate and of the ongoing operations of existing commercial real estate buildings in the United States – office, industrial, warehouse and retail – supported 8 million American jobs, contributed $1.01 trillion to the U.S. GDP in 2020, and generated $338.1 billion in personal earnings – according to “Economic Impacts of Commercial Real Estate, 2021 U.S. Edition,” a study released this week by the NAIOP Research Foundation.

Watch NAIOP's State of the Association to hear a recap of 2020, preview NAIOP's legislative priorities, and learn what’s next for the association as we journey through 2021.

Development and construction of new commercial real estate in the United States – office, industrial, warehouse and retail – generates significant economic growth at the state and national levels. This annual study, published by the NAIOP Research Foundation, measures the contribution to GDP, salaries and wages generated and jobs supported from the development and operations of commercial real estate.

Meet Molly Carson, NAIOP's 2021 chair, and learn her plans for the year.

The winter 2020/2021 issue of Development magazine features a cover story on cold building development and feature articles on the surge of life sciences real estate amid the pandemic, a difficult forecast for commercial real estate, and opportunities in a post-pandemic world.

Hear about the latest work of the NAIOP Research Foundation and meet its new governors.

The NAIOP Research Foundation commissioned this report to provide the real estate development community with insight into current and future trends in building and logistics technologies and their implications for industrial real estate. Steve Weikal and James Robert Scott, researchers at the MIT Real Estate Innovation Lab, interviewed professionals specializing in industrial building design and automated systems to identify emerging trends that will be of interest to industrial developers, building owners and tenants.

Watch the presentation of the 2020 Developer of the Year Award to Kilroy Realty Corporation.

In NAIOP’s sixth monthly survey tracking the effects of the pandemic on the commercial real estate industry, respondents reported continued gradual improvement in deal activity, but also reported more tenants seeking rent relief, particularly in the office sector.

The NAIOP Research Foundation commissioned Steve Fuller, Ph.D., professor emeritus at George Mason University, to undertake a study of the 2020 mid-year economy and how second quarter shocks may influence commercial real estate development in the future.

The fall 2020 issue of Development magazine features a cover story on the developer of the year and articles on the office of the future, industrial emerges from the pandemic in relatively good health, and doing CRE during a pandemic.

NAIOP, the Commercial Real Estate Development Association, has selected five professionals to receive its prestigious 2020 Developing Leaders Award. The annual award honors up-and-coming professionals under the age of 35 for their remarkable professional accomplishments, strong leadership and significant community involvement. The winners will be recognized during NAIOP's CRE.Converge Virtual 2020, Oct. 7-8.

Industrial real estate has looked unbeatable over the last few months, and the coronavirus pandemic has prompted a slew of predictions about the future of e-commerce: that consumers won’t go back to brick-and-mortar, or that retailers will start using warehouses to stockpile supplies for another crisis, boosting industrial demand higher than we’ve ever seen.

The NAIOP Research Foundation has issued a research brief that identifies best practices for triaging office and industrial tenant requests, offering reasonable accommodations to those tenants who need short-term assistance, and responding to disaffected tenants. It also examines how owners are adapting to new ways of showing and leasing space with safety precautions in mind.

In the fourth monthly NAIOP survey measuring the impact of the COVID-19 crisis on the commercial real estate industry, respondents say that deal activity is improving across most major sectors of the industry, but more now expect impacts from the crisis to affect their businesses for an additional 12-18 months.

While the economic impact of the coronavirus pandemic has been both devastating and far-reaching, including for many areas of commercial real estate, the industrial sector has remained strong, according to a recent Bisnow interview with Jim Clewlow, chief investment officer at CenterPoint Properties.

This brief evaluates the merits of frequently discussed capital investments and their potential to create durable competitive advantages. It draws from an analysis of recent coverage in commercial real estate trade publications, as well as conversations with seven industry practitioners that took place in June 2020.

Highlights and interviews on the uniqueness and innovation of this virtual conference event.

Development magazine and NAIOP recently won seven awards in the 42nd annual American Society of Business Publication Editors (ASBPE) Azbee Awards of Excellence. The Azbees honor outstanding writing and design work in magazines, newsletters and digital media from association, B2B, trade and professional publications.

In the third NAIOP survey tracking the commercial real estate industry’s response to the COVID crisis, the industrial real estate sector showed significant gains in new redevelopment/redevelopment, building acquisitions and deal activity.

The summer 2020 issue of Development magazine is a Special Issue on COVID-19 and features special reports on the pandemic's effects on the economy, the office, retail and industrial sectors, and a look at what's on the horizon from industry experts.

NAIOP, the Commercial Real Estate Development Association, has published a second edition of the book “Rules of Thumb for Distribution/Warehouse Facilities Design.” The ebook is available for purchase and download online.

NAIOP, the Commercial Real Estate Development Association, has selected Kilroy Realty Corporation (NYSE: KRC) as the 2020 Developer of the Year – the association’s highest honor. The award will be presented during NAIOP’s CRE.Converge conference in Las Vegas this October.

Measures to contain the coronavirus outbreak temporarily slowed economic activity and dramatically reduced occupancies at many commercial buildings. As state and local governments outline plans for a phased reopening of the economy, office building owners and employers are formulating plans that will allow employees to return safely to work.

A new report published by the NAIOP Research Foundation projects positive absorption of office space beginning in the third quarter of 2021.

It’s no secret that industrial owners are more insulated from the current crisis than their peers in office, retail or hospitality. But projections from the world’s largest real estate services firm suggest that industrial real estate isn’t just going to survive the next six months, it will also thrive in the following year.

The NAIOP CRE Sentiment Index, based on a survey of real estate practitioners, has dropped below 50 for the first time since its inception; however, because the survey was conducted March 11-25, 2020 as the nation was rapidly reacting to the COVID-19 pandemic, the long-term outlook is better understood as a snapshot of industry sentiment than as a reliable predictor of future market conditions.

NAIOP, the Commercial Real Estate Development Association, has announced the four recipients of its annual diversity student scholarship. The scholarship program supports students who are pursuing a graduate degree in commercial real estate and is a key component of the association’s pledge to advance diversity in the industry.

The commercial real estate industry has long ranked cities and regions into tiers for the purpose of market analysis, based on their investment potential or growth characteristics. However, the lack of a uniform approach and differences in variables – including the rise of certain industries in specific markets, changing rates of growth, and strengths in particular sectors such as office or industrial – can lead to confusion in the marketplace as real estate practitioners sift through competing reports on which markets are considered ideal for investment.

The challenges presented by the COVID-19 pandemic are unprecedented and far-reaching. During this time of crisis, NAIOP is focused on delivering the invaluable education, advocacy and research that you expect – and that your business depends on.

Bisnow interviewed Michael Kloppenburg, senior consultant for flexible office solutions at Avison Young, and Daniel Levinson, chairman, CRE Holdings, subject matter experts for NAIOP’s new Real Estate as a Service course on the REaaS model.

The spring 2020 issue of Development magazine features a cover story on The Rise of Real Estate as a Service and articles on Integrating WELL into Industrial Properties; Industrial Intensification Heats Up; Boston, A "Living City," Transforms Once Again; and Cutting-edge Research That Has an Impact.

The coronavirus outbreak will accelerate trends that had been forming in commercial real estate and cause dramatic changes in the industry faster than had been anticipated. The crisis will result in some short-term contractions in the industry, but will lead to a long-term expansion for commercial real estate generally, particularly in the industrial and warehouse sector.

NAIOP commends the U.S. House for today’s passage of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), following the U.S. Senate's passage on Thursday. We expect President Donald Trump to sign it into law shortly.

Dividing and grouping the major metropolitan regions of the United States into ranked groups or “tiers” is a frequently used method to evaluate, prioritize and rank markets for investment. This project provides an understanding of the origins, methodologies and uses of market tier models.

Quarterly net absorption will remain at or above 50 million square feet on a sustained basis through Q2 2021.