National Office Sector Report (Q2 2016) (PDF)

Savills Studley Reports - Q2 2016 (National)

Considering the see-saw of equity markets, contraction in business investment and fears about slowing global growth, the U.S. labor market has shown quite a bit of resilience. In turn, demand for office space has been sustained in the majority of markets, giving a boost to rent and net operating income. That said, some of the top-performng markets of a year ago are showing signs of weakening.

12 Cities: Real estate costs of living and working around the world (PDF)

Savills Studley Reports - 2014 (National)

Savills puts the public transport systems of our cities under the microscope. Although just one aspect of a city’s personality, these arteries play a significant role in determining the way that people interact and how they can use a city.

National Office Sector Report (Q4 2014)

Savills Studley Reports - Q4 2014 (National)

Most office markets are poised for their second or third straight year of declining availability in 2015. New supply could shift the supply/demand balance by 2016, though.

The FOMC Holds Rates “For the Time Being”

Economic Pulse - 09/21/16 (National)

Once again, the Committee scaled back expectations for a rate hike, trimming expectations by one full rate hike in 2016 and two rate hikes in 2017 and 2018.

Household and Corporate Balance Sheets: A Closer Look

Economic Pulse - 09/20/16 (National)

We look at how corporate America and the private sector have fared recently, focusing on balance sheet changes and in particular, changes in real estate values.

August Office Employment Softens; Fed Move Still Possible

Economic Pulse - 09/02/16 (National)

Office employment rose by a lackluster 41,000 (Table 1 and Chart 1)—roughly half the gain of the prior month, led by weakness in the professional and business services segment, and specifically, a decline in jobs in the employment services category.

July Office Employment Rebounds; Gains Should Make for September Move

Economic Pulse - 08/05/16 (National)

At least for now, recent data suggest the labor market is firing on all cylinders: the average monthly gain in office-using payrolls over June and July equals 99,000—more than twice as much as the 42,500 average monthly gain over April and May.

Commercial Real Estate Activity: “Stable to Improving”

Economic Pulse - 07/13/16 (National)

Construction and real estate activity generally remained stable, with “improving” industrial markets in New York, Richmond and Dallas. Office market conditions, however, were described as “mixed.”

June Office Employment Rebounds, But Growth Is Slowing

Economic Pulse - 07/08/16 (National)

Despite employment figures for May that were even weaker than initially reported, June’s report showed a healthy gain of 287,000 workers overall, and a 265,000 gain in the private sector.

Federal Open Market Committee: Still Data Dependent

Economic Pulse - 07/06/16 (National)

May’s payroll report and the outcome of the referendum in the U.K. seem to have dampened prospects not only for a rate hike in H2 2016, but also for any hike in H1 2017.

May Office Employment: An Aberration or the Start of a Slowdown?

Economic Pulse - 06/03/16 (National)

The release suggested deterioration across many industries: employment in construction and manufacturing each contracted, while employment in the professional and business service sector rose by just 10,000 jobs.

Commercial Real Estate Activity: “Increased in Most Districts”

Economic Pulse - 06/01/16 (National)

The Beige Book report for June, which summarizes comments received from businesses and other contacts outside the Federal Reserve, suggested that economic growth during the most recent period was “modest,” with an uptick in the number of Districts seeing slower or marginal growth.

Strength in April Office Employment Masks Softening Report Overall

Economic Pulse - 05/06/16 (National)

Office employment in April rose by a robust 85,000—20,000 more than the average observed over the last 12 months . In particular, management/technical consulting and computer systems design each added an above-average number of workers

Federal Open Market Committee: No Change, But June is a Possibility

Economic Pulse - 04/27/16 (National)

The fact that the FOMC does not view overseas developments as actively threatening U.S. growth suggests the door for a June rate hike is now open, even as the Committee acknowledged what is likely to be a very weak quarter for growth.

Commercial Real Estate Activity: “Generally Increased”

Economic Pulse - 04/18/16 (National)

Commercial real estate activity “generally increased,” with leasing activity and higher rents noted in many Districts, including strong retail leasing activity in Chicago and industrial leasing in Dallas.

Employment Supports June Fed Move

Economic Pulse - 04/01/16 (National)

The labor force grew by almost 400k, but the number of employed workers rose by just 246,000.

Office Employment Growth Steady

Economic Pulse - 03/04/16 (National)

While the decline in average hourly earnings was somewhat surprising, it may be well the case that the cost of skilled labor begins to rise.

Commercial Real Estate Activity: “Flat to Strong”

Economic Pulse - 03/03/16 (National)

While reports “continued to indicate that economic activity expanded in most Districts,” there was an increase in the number of Districts that reported mixed conditions; one District reported a modest decline in activity.

Commercial Real Estate Activity: “Modest to Moderate”

Economic Pulse - 01/11/16 (National)

The first Beige Book report of the year, which summarizes comments received from businesses and other contacts outside the Federal Reserve, showed that commercial activity "generally improved" in most Districts, with rental rates that "rose somewhat" from the late-November 2015 period.

Major Rebound in Office Employment

Economic Pulse - 01/08/16 (National)

Despite the advance in office-using employment and payrolls generally, there is little evidence of widespread wage pressures. Average hourly earnings were unchanged on the month, and have risen by just 2.5% on a YoY basis.

The FOMC (Finally) Raises Rates

Economic Pulse - 12/16/15 (National)

The Federal Open Market Committee voted unanimously to raise its Federal Funds rate target today as expected, bringing the benchmark rate higher by 25 bps to a range of 25 bps - 50 bps.

Payroll Surge Continues, But Office Employment Pulls Back

Economic Pulse - 12/07/15 (National)

November’s payroll figures were again above consensus forecasts, with total nonfarm payrolls rising by 211,000 and upward revisions to the figures from September and October adding a net +35,000.

Commercial Construction Strengthened Modestly in Most Districts

Economic Pulse - 12/02/15 (National)

The December Beige Book report, the Federal Reserve’s description of current economic conditions in each of its 12 Districts, showed that commercial construction activity “strengthened modestly” in most Districts.

Fed Cred: On the Hook for a December 16th Move

Economic Pulse - 11/18/15 (National)

While today’s minutes from the October FOMC meeting suggested lingering doubts by some Committee members as to whether December would be the appropriate time to hike rates, it is important to note that at the time of the October meeting, October’s stellar jobs report had not been released yet.

Payroll Growth Supports December Rate Hike

Economic Pulse - 11/06/15 (National)

While employment in financial activities and information were essentially unchanged gains in the professional and business services category soared, increasing by 78,000.

Stronger Demand for Commercial Real Estate Bank Loans

Economic Pulse - 11/03/15 (National)

standards for all three categories of CRE loans were slightly tighter versus the survey a quarter prior; bank respondents suggested that loan demand was modestly stronger, as well.

Do Conditions Support a Rate Increase From the Fed?

Economic Pulse - 10/28/15 (National)

Has there been “further improvement in the labor market” and should the Fed be “reasonably confident that inflation will move back to its 2 percent objective over the medium term?”

Applying Analytics to Real Estate Assets

Economic Pulse - 10/19/15 (National)

Nathan Brzozowski discusses how companies are increasingly adopting financial modeling methods to analyze and justify corporate real estate decisions.

No Change in Policy as FOMC Cites Risks from "Global Developments"

Economic Pulse - 09/17/15 (National)

Risks to the outlook for economic activity and the labor market continued to be described as “nearly balanced,” even as the Committee sounded a note of caution by adding the phrase “..but is monitoring developments abroad.”

Commercial Real Estate Activity “Positive on Balance”

Economic Pulse - 09/02/15 (National)

The September Beige Book report showed that commercial real estate activity was “positive on balance.”

Payroll Growth Hums Along

Economic Pulse - 08/07/15 (National)

July’s payroll figures were broadly in-line with consensus, with total nonfarm payrolls rising by 215,000 and upward revisions to the figures from May and June adding a net +14,000.

Stronger Demand for Commercial Real Estate Bank Loans

Economic Pulse - 08/05/15 (National)

Over the last quarter, a modest net fraction of banks eased lending standards on loans secured by CRE. In addition, banks indicated that they had experienced stronger demand for all three types of CRE loans.

Commercial Real Estate Outlook Remains "Fairly Favorable"

Economic Pulse - 07/16/15 (National)

Comments from July's Beige Book report regarding commercial real estate for each district.

Payroll Growth Enough to Tip the Fed’s Hand in September

Economic Pulse - 07/06/15 (National)

June’s payroll figures were largely in-line with consensus, although downward revisions to the April and May figures, in tandem with other factors, were disappointing news.

Policy Tightening Likely Ahead For September

Economic Pulse - 06/17/15 (National)

Today’s statement from the Federal Open Market Committee (FOMC) struck a more positive tone than April’s release, and clearly highlighted an improvement in macro conditions.

Commercial Real Estate Outlook Described as “Optimistic”

Economic Pulse - 06/03/15 (National)

The June Beige Book report, the Federal Reserve’s description of current economic conditions in each of its 12 Districts, showed that commercial real estate activity “improved in most districts, and outlooks were optimistic.”

April Rebound Tempered by Downward Revisions to March

Economic Pulse - 05/08/15 (National)

April’s payroll figures were largely in line with expectations, though the aggregate downward revisions to data from the prior two months (a combined 39,000) were disappointing, thus reinforcing a weak start to Q1.

“Stable or Expanding” Commercial Real Estate Conditions

Economic Pulse - 04/15/15 (National)

The April Beige Book report showed that commercial real estate activity “remained stable or expanded” across many Districts.

How Much is That Software Developer?

Economic Pulse - 03/30/15 (National)

We highlight a few trends by occupation on a national basis, as well as a look at wage data by region for software developers and computer programmers, as but two examples.

FOMC Forecast: Removal of “Patient” Doesn’t Signal Committee “Impatience”

Economic Pulse - 03/19/15 (National)

While the phrase, "the Committee judges that it can be patient in beginning to normalize the stance of monetary policy" was removed, yesterday’s statement noted that "an increase…remains unlikely at the April FOMC meeting."

All Hail QE (Quantitative Easing)

Economic Pulse - 03/13/15 (National)

Despite fears that Quantitative Easing, seen as money-printing schemes in some circles, would create inflation, the opposite result has occurred. In the U.S., bond purchases by the Fed have 1) dramatically decreased interest rates, 2) raised the monetary base, 3) and left core inflation far from the central bank’s target.

Private Sector Hiring Remains Strong

Economic Pulse - 03/06/15 (National)

While financial activity hiring was below January’s outsized increase, professional and business services employment resumed its typical advance. However, temporary help employment, which comprises approximately 14% of the professional and business services category, contracted for the second straight month.

“Stable to Improving” Commercial Real Estate Conditions

Economic Pulse - 03/04/15 (National)

The March Beige Book Report showed a slight increase in the number of regions where growth was described as “moderate,” even as one District cited a slowing of activity overall.

Payrolls Report: Robust Start to 2015

Economic Pulse - 02/10/15 (National)

The first payroll report for 2015 was full of good news: continued strength in hiring (despite a modest uptick in the unemployment rate to 5.7%), with a 71,000 gain in office-using jobs that was in line with the average monthly advance observed during 2014.

Stronger Demand for Commercial Real Estate Bank Loans

Economic Pulse - 02/03/15 (National)

Standards for all three categories of CRE loans were reported to have changed little from last quarter's Senior Loan Officer Survey, as bank respondents suggested that loan demand was modestly stronger.

Does the Decline in Oil Spell Turmoil?

Economic Pulse - 01/14/15 (National)

Respondents voiced some concern over sustained commercial real estate activity in 2015, even as the overall level of optimism remained high.

December Payrolls: More Jobs, Less Pay

Economic Pulse - 01/09/15 (National)

Today’s payroll report showed a continuation of the themes that characterized 2014: robust growth.

Patience: a virtue in normalizing monetary policy

Economic Pulse - 12/18/14 (National)

Yesterday’s announcement from the Federal Open Market Committee (FOMC) marked the first step in eventual monetary policy tightening.

Monthly Gain in Professional and Business Service Jobs at 4-Year High

Economic Pulse - 12/05/14 (National)

While the unemployment rate held steady at 5.8 percent, nonfarm payroll employment increased by 321,000 and office-using payrolls showed the second-largest monthly gain since 2000.

Declining vacancies and rising rents for office space

Economic Pulse - 12/04/14 (National)

Commercial real estate activity rose in most Districts. Construction of office space was relatively strong in some large urban areas, such as New York City and Philadelphia.

FOMC Minutes: Greater concern over declining inflation

Economic Pulse - 11/19/14 (National)

The minutes from the Federal Reserve’s October meeting reflect the challenges that the Committee faces with regard to normalizing policy in an environment of low inflation expectations.

Office-Using Payrolls Advance, Though at a Slower Pace

Economic Pulse - 11/07/14 (National)

The unemployment rate edged down to 5.8 percent and nonfarm payroll employment increased by 214,000, even as almost half of the job gains came from just three areas: food service/drinking places, retail trade and health care.

Q3 GDP Advances 3.5%; Non-Residential Investment Growth Stalls

Economic Pulse - 10/30/14 (National)

Investment in commercial structures and health care structures are grouped together, although office investment typically makes up 1/3 of total investment in the commercial/ health care category.

Commercial real estate activity grew “in most districts”

Economic Pulse - 10/16/14 (National)

Commercial real estate activity grew in most Districts. Richmond, St. Louis, and San Francisco reported increased commercial construction, industrial construction, or both. Commercial contractors...

Largest monthly gain in office-using payrolls in more than 1 ½ years

Economic Pulse - 10/02/14 (National)

Figures released today were consistent with a labor market rebound: average hourly earnings of production and nonsupervisory workers are up by 2.3% year-on-year.

"Considerable Time" Stays as Growth is "Moderate"

Economic Pulse - 09/17/14 (National)

Today’s policy announcement from the Federal Open Market Committee (FOMC) was little changed from July.

Pace of Growth in Office-Using Payrolls Slows

Economic Pulse - 09/08/14 (National)

The increase in professional/business services employment for June and July was revised down by a cumulative -14,000, however, eroding some of the employment gains of the past few months.

No "Shift in the Overall Pace of Growth"

Economic Pulse - 09/04/14 (National)

Economic activity continued to expand across most regions and sectors, even as “none of the Districts pointed to a distinct shift in the overall pace of growth.

Office-Using Payrolls Reach New High

Economic Pulse - 08/01/14 (National)

July’s total payroll gain of 209,000 marks the sixth consecutive month of advances in excess of 200,000. The last sixmonths have brought a total of 1.465 million new jobs—the largest increase since August 2005.

Q2 GDP Advances Above Forecast; Revisions More Positive As Well

Economic Pulse - 07/30/14 (National)

GDP for the second quarter surprised to the upside, beating consensus estimates for a 3% gain, as the economy grew at a 4% annualized rate.

A Glance at CPI by Region

Economic Pulse - 07/22/14 (National)

Core inflation remained tame in June, as year-over-year inflation excluding the more volatile food and energy components fell from 2.0% to 1.9%.

Most Districts “Optimistic About the Outlook for Growth”

Economic Pulse - 07/16/14 (National)

The Beige Book report revealed that economic activity continued to expand across most regions and sectors. “Moderate” growth characterized activity in the...

Key Take-Aways from Fed Chair Yellen's Speech to the Senate

Economic Pulse - 07/15/14 (National)

Quotes from Fed Chairwoman's Speech to the Senate, including three points form the Monetary Policy Report...

July FOMC Minutes: Key Take-Aways

Economic Pulse - 07/10/14 (National)

The minutes released Wednesday from June’s Federal Reserve meeting highlighted a wide degree of uncertainty as to the timing of any eventual increase in the main policy rate...

June Office-Using Payrolls Reach New High

Economic Pulse - 07/03/14 (National)

Monthly job gains have averaged 272,000 over the past 3 months, while office-using employment has averaged 66,000 over the same period, each ahead of its average over the prior 12 months...

Should monetary policy be used to prevent asset bubbles?

Economic Pulse - 07/02/14 (National)

Federal Reserve Chairwoman Yellen implies she will not hesitate to use policy as a tool to control risk-taking if conditions merit...

Household and Corporate Debt: At Pre-Recession Levels, Even As Leverage Ratios Are Lower

Economic Pulse - 06/27/14 (National)

One of the outcomes of the Great Recession has been the extent of household and corporate deleveraging. However, the stock of outright debt remains at record highs; debt reduction on an outright basis has not occurred in any meaningful way. Rather, it is the recovery in asset prices that has fueled the improvement in debt ratios.

Worst reading in GDP in five years: Was it all from a health-care induced slowdown?

Economic Pulse - 06/25/14 (National)

Today’s data brought the final release of Q1 2014 GDP. Despite its backward-looking nature, the revision from -1.0% to -2.9% resulted in the sharpest quarterly decline in five years, and was significantly worse than market expectations.

Office-Using Employment in the 10 Largest Counties in the US

Economic Pulse - 06/19/14 (National)

Today’s quarterly report on County Employment and Wages (CEW) for Q4 2013 provides a count of employment, establishments and wages across all 9.3 million establishments covered by state and federal unemployment insurance laws.

Fed Rate Hikes: Sooner, But Smaller

Economic Pulse - 06/18/14 (National)

May’s policy announcement from the FOMC was largely similar to its April statement. As expected, monthly asset purchases were trimmed by a further $10 billion to $35 billion.

Consumer Price Inflation Accelerates Across All Categories

Economic Pulse - 06/17/14 (National)

Today’s consumer price inflation report for May 2014 showed a greater-than-expected increase in the year-over-year figure to 2.1%, the largest annual gain since October 2012.

Payrolls Soar to Record Level in May

Economic Pulse - 06/06/14 (National)

While overall job growth appears robust since the official end of the recession almost five years ago, there are several sectors within office employment where weakness has persisted.

Commercial Real Estate Markets “Generally Steady to Stronger”

Economic Pulse - 06/05/14 (National)

While overall job growth appears robust since the official end of the recession almost five years ago, there are several sectors within office employment where weakness has persisted.

Commercial Real Estate Conditions Continue to Ease — So Say Lenders

Economic Pulse - 05/12/14 (National)

Despite market expectations for higher Treasury yields, interest rates have moved counter to consensus, with 10-year Treasury yields touching a six-month low last week. The decline has coincided with a steady drop in risk aversion...

Office-Using Employment for April Surges Ahead; Unemployment Rate Decline Looks to be Aberration

Economic Pulse - 05/02/14 (National)

The +78,000 gain in total office-using employmentwas almost entirely due to increases in Professional/Business Services workers with 1/3 of the gain due to a rise in the number of temporary help services employees...

“Mild to Moderate Pace” for Commercial Leasing Activity

Economic Pulse - 04/25/14 (National)

Many Districts attributed a portion of the expansion in activity to the improvement in weather: “Consumer spending increased in most Districts, as weather conditions improved and foot traffic returned."

Fed Drops “Forward Guidance” and Lowers Trajectory of GDP Growth

Economic Pulse - 03/20/14 (National)

The somewhat disappointing outcome of yesterday’s meetingwas the downgraded assessment of GDP growth for the next several years

Office-Using Employment for February Surprises to the Upside

Economic Pulse - 03/07/14 (National)

Despite a negative contribution from the information sector, office-using employment gains climbed to a seven-month high, rising by 72,000.

Commercial real estate activity “expanded” over the last month

Economic Pulse - 03/05/14 (National)

Many Districts indicated that commercial real estate activity had increased and that conditions continued to improve since the previous report. The outlook for nonresidential construction was fairly optimistic across most regions.

BLS Increases Coverage for Producer Price Index: Adds Construction Services

Economic Pulse - 02/19/14 (National)

Today’s Producer Price Indexes (PPI) represents the first methodological change in the series since 1978. Whereas the “old” index reflected the cost of goods at the producer level...

Office-Using Employment for January Fails to Impress

Economic Pulse - 02/11/14 (National)

Despite revisions that boosted total employment in prior months, January’s payroll gain of +113,000 was well below the +194,000 average monthly increase posted in 2013.

Regional Fed District Banks Comment on Commercial Real Estate

Economic Pulse - 01/15/14 (National)

While reports “contained much good news” according to the Federal Reserve, performance within some Districts was “uneven across locations and property types.”

FOMC Weighs Marginal Costs and Benefits of Quantitative Easing

Economic Pulse - 01/09/14 (National)

The minutes from the Federal Reserve’s December 17-18 meeting, released yesterday, revealed a wide set of opinions with regard to the effectiveness and associated costs of the asset purchase program.

Office-Using Employment Ends the Year with a Whimper

Economic Pulse - 12/31/13 (National)

The headline increase of only 74,000 in total non-farm employment in December was not the only disappointing bit of news with last Friday’s release; office-using employment rose by just 11,000, a fraction of the 62,000 average monthly increase...

Fed Lowers Unemployment Forecast, Keeps "Lower for Longer" Bias

Economic Pulse - 12/18/13 (National)

In a nod to the holiday-giving season, all monetary policy forecasters received the gift of “being right” with today’s announcement.

Office-Using Employment Disappoints Versus Headline Gains

Economic Pulse - 12/09/13 (National)

Despite a stronger-than-expected headline gain in November, the monthly change in office-using employment fell short of recent increases.

Economic Activity Continues to Increase at a "Modest to Moderate Pace"

Economic Pulse - 12/05/13 (National)

The Beige Book report, the Federal Reserve’s description of current economic conditions in each of its 12 Districts, revealed that the economy “continued to increase at a modest to moderate pace”

Fed Hints at “Trimming the Pace of Asset Purchases”

Economic Pulse - 11/21/13 (National)

Yesterday’s minutes from the Federal Reserve’s October policy meeting reaffirmed the Committee’s continued commitment to maintaining the current pace of asset purchases

Office-Using Employment: Ready to Rebound?

Economic Pulse - 11/08/13 (National)

Office-using employment grew by a robust 56,000 jobs on the month, led by the Information (+5,000), Financial Activities (+7,000) and Professional/Business Services sectors (+44,000).

What Effect Could a US Debt Default and Prolonged Shutdown Have on the Economy?

Economic Pulse - 10/15/13 (National)

While we do not see the US going into default, we nonetheless highlight some of the risks associated with such a scenario, and evaluate the effects of a potential default on commercial real estate.

How the Legal Industry Landscape is Shaping Occupancy Trends

Savills Studley Insights - 09/22/16 (National)

The economic pressures facing the legal sector have inspired firms large and small to think creatively about their futures. There’s a subtle but important shift going on industry-wide; law firms are rethinking who they are and how they work, rather than simply falling back on old paradigms.

2016 Tax Law Changes Affecting Users and Owners of Real Estate

Savills Studley Insights - 01/22/16 (National)

We examine the tax credits and those pieces of the new legislation that affect the commercial real estate industry.

EB-5 Investment and the Impact on Commercial Real Estate

Savills Studley Insights - 03/16/15 (National)

The EB-5 visa program affords foreign nationals the ability to obtain a U.S. visa based upon investment in a for-profit enterprise that creates or retains a specified number of jobs. Understanding how developers and landlords make use of the EB-5 program as part of their capital structure can be important for tenants to understand, particularly...

Law Firm Employment and Space Trends

Savills Studley Insights - 10/15/14 (National)

The number of law firms and the total headcount of lawyers both have failed to keep pace with the growth observed in other professional and business service sectors, the majority of which have sharply rebounded in the wake of the recession.

National SERI Report (2016) (PDF)

For the fifth straight year, tenants faced higher effective rent for premium Class A space in nearly all major U.S. CBDs. A distinguishing factor in 2015 was the acceleration of rental rate growth in many of the "late recovery" markets such as Atlanta, Chicago, and Los Angeles.

Office Employment Growth Pulls Back (PDF)
Office employment growth slowed from prior months, rising by just 28,000 and marking the smallest increase since October 2014. Despite the lackluster report, however, wage growth was very strong, advancing 0.5% month-on-month—and the most in a year. 

Market Volatility and the Effect on U.S. Commercial Real Estate

Market Insights - 02/12/16 (National)

A confluence of events may lead to another year where U.S. commercial real estate holds up well relative to other markets in disarray.

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