Suburban Edge

Palisades believes in the suburban investment platform because we know these markets, have successfully created value and operated assets through all economic conditions in suburban locations for over a decade and understand the tenant, broker and asset strategies that provide the greatest ROI to Palisades investors. As CBD rents escalate, construction remains limited and aging millennials seek business locations closer to home, suburban office occupancy and rental rates will continue to rise.

Q4 2014 U.S. Suburban Office Clock

Source: JLL Research

 

Rebounding suburban markets in the U.S. offer some of the most promising returns today, especially in the West, Northwest and Southwest regions.

 

 Urban MarketSububan Market
Leasing activity 54% of total leasing activity over 20,000 s.f. 46% of total leasing activity over 20,000 s.f.
Absorption  46% of tenants are growing  51% of tenants are growing
Vacancy  16% of tenants are shrinking  6% of tenants are shrinking
Markey Growth  23 companies were 'new to market' 14 companies were 'new to market'
Leading Industry  Banking, finance, and insurance generated the most activity at 3.3MSF leased Technology generated the most activity at 3.6MSF leased
Technology followed, leasing 2.8MSF Banking, finance, and insurance followed, leasing 1.8MSF

 Source: JLL Research

 

As millennials age and as suburban communities create more urbanized amenities and transportation, those office assets
will continue their rise in occupancy, rental rate and ultimately, return – already a double digit trend in many areas.