Building Today for a Stronger Tomorrow: CBRE Cares New England 2018 Year in Review

logo.PNGCBRE Cares New England mission is “to build a foundation for our community by facilitating a variety of volunteer and giving opportunities that have a significant effect on the lives of families in need—building today for a stronger tomorrow.” CBRE Cares New England works to harness the aggregate potential of CBRE/New England’s over 36 MSF property management portfolio, coordinating engaging events for CBRE/NE tenants and employees. In 2018, CBRE Cares New England organized the following charitable activities:

Clothing Drive: Over 1,794 Pounds of Clothes Donated
CBRECares_SpringClothingDrive_WSJ.jpgPartnering with Cradles to Crayons this past spring, CBRE Cares New England collected clothing, shoes, socks, underwear, hygiene items and toys. This spring, 1,794 pounds of clothing were generously donated. The drive ran from March 19-30.

In combination with this drive, CBRE/NE also visited The Giving Factory for a day of service on Thursday, April 12. Volunteers enjoyed a day of fun as they created “KidPacks” to help Cradles to Crayons work towards their mission of providing basic necessities for children in need.

C2C 6.jpg

Food Drive: Over 1,425 Pounds of Food Donated
2018_Food Drive_Captivate.jpgCBRE Cares New England hosted a Food Drive in June. The Food Drive ran from June 18-29 and all donations were distributed to local food pantries across New England affiliated with Feeding America, the nation’s leading domestic hunger-relief charity. Over the course of just two weeks, CBRE Cares New England collected a total of over 1,425 pounds of food donations, amounting to 5,700 meals created! With a network of more than 200 food banks serving all 50 states, Feeding America secures and distributes more than 2.5 billion pounds of food and grocery products annually.

Esplanade Clean Up Day
CBRE/NE employees spent a day working with the Esplanade Association on Thursday, July 19th. Volunteers spent the day helping to eradicate invasive species across the esplanade and also helped to clean up litter. The Esplanade Association is a privately funded nonprofit organization that works to revitalize and enhance the Charles River Esplanade, preserve natural green space and build community by providing educational, cultural and recreational programs for everyone.

Toy Drive
ToysForTots_CaptivateScreen_2018.jpgCBRE Cares New England recently wrapped up its annual partnership with the U.S. Marine Corps Reserve Toys for Tots program from November 26th through December 7th. Donation stations were established in all participating buildings where employees and tenants dropped off new gifts to benefit local kids in need. Gifts were collected on behalf of the U.S. Marine Corps Reserve Toys for Tots Foundation and other local charities. Since 1947, the U.S. Marine Corps Reserve Toys for Tots program has received national recognition organizing holiday toy drives across the U.S. for more than 14 million children annually.

A relatively quiet quarter for the Greater Hartford Industrial market

Hartford Industrial

Short on time? Here are the highlights of our third quarter 2018 Greater Hartford Industrial MarketView. To request the full report, fill out the form at the bottom of this post.

HartfordIndustrial2

The Greater Hartford Industrial market in Q3 2018 saw a small contraction of 6,403 sq. ft. of negative absorption, down from 235,152 sq. ft. of positive absorption in the second quarter. The vacancy rate remained flat at 8.3%, while the availability rate increased marginally to 8.8%. Meanwhile, average asking rents in the market decreased to $5.17 per sq. ft. NNN.

Both the Hartford South and Hartford West submarkets drove the leasing activity in the Greater Hartford Industrial market.

 

Greater Hartford Office market ends Q3 2018 with another quarter of positive absorption

hartford office

Short on time? Here are the highlights of our third quarter 2018 Greater Hartford Office MarketView. To request the full report, fill out the form at the bottom of this post.

HartfordOfficePic

The Greater Hartford Office market continued its trend of positive absorption from last quarter concluding with 18,702 sq. ft. of positive net absorption for Q3 2018. The vacancy rate for Q3 decreased marginally to 17.7%, and the availability rate increased to 19.5%. Meanwhile, average asking rents increased to $20.03 per sq. ft. gross making it the second consecutive quarter of rent growth for the Greater Hartford Office market.

It’s almost time to say goodbye to our 2018 Summer Interns

GoodbyeInterns-Email_2018 (HIGH) 02.jpg

Recap: 2018 CBRE/New England Hartford Market Overview

2018Hartford

At our Hartford Market Overview, our Connecticut team presented on the state of the industrial, office and investment markets. We were pleased to have Joshua Solomon, Owner of the Hartford Yard Goats, join us on stage as our keynote speaker.

Office Market 
Michael Puzzo, Senior Vice President/Partner, and Jennifer Gosselin, Vice President, covered the Connecticut Office market.

Puzzo and jenn

“The Greater Hartford Office market lost 560,000 SF of occupancy during 2017 and it came in many forms. Classic large-scale consolidations; new workplace initiatives that have increased density and efficiency; and new sublease offerings from users that have relocated ahead of scheduled expirations.” – MP

“With the market more competitive than ever for limited demand, landlords will be more focused on engaging tenants and enhancing the overall experience at their buildings. This past year we’ve seen lobby refreshes, new cafes, new fitness centers and outdoor gathering spaces.” – JG

Office
Our office market forecast for 2018 includes:

  • Healthcare will be the #1 growth industry during the next decade
  • Start-up incubators could be a potential source of demand
  • The Hartford Line opening in May should provide future economic growth
  • Hartford Office market will have a lot of work to do to absorb the losses experienced in 2017

Industrial Market 
Chris Metcalfe, First Vice President, led with an in-depth overview of the Greater Hartford Industrial market.

Metcalfe

“More than any other product type, industrial is influenced by the vibrancy we see on a national level as commerce changes its real estate footprint in response to the marriage of industrial and retail. The rise of industrial nationally has kept our local industrial market immune to the challenges facing Connecticut.” – CM

“Growth-related challenges facing the supply chain present opportunities for Connecticut. There is currently a two-day delivery expectation from the consumer, which forces competition down to one-day or same-day delivery. This change will require new warehouses to be even closer to population centers.” – CM

supply chain

“There is another huge challenge in the industrial market: The Trucking Labor Crisis. By 2024 the deficit of insufficient truck drivers is forecast to be 175,000 positions.” – CM

Our industrial forecast for 2018 includes:

  • More large-format in our vicinity – demand from one MSF users
  • Last mile keeps rolling
  • Driverless trucks (?)

Capital Markets
Anna Kocsondy, Vice President, and Anna Pfau, Senior Production Analyst, covered the Connecticut Investment Sales market.

Anna and Anna
Our investment market forecast for 2018 includes:

  • Continued demand for well-located office buildings with walkable amenities
  • Multifamily is still highly sought after by investors and lenders with strong and stable fundamentals both on the local and national level
  • Industrial is the #1 favored property type
  • E-commerce giants to acquire more brick & mortar stores
  • Medical office expansions into traditional retail spaces should bolster retail centers’ credit and future pricing expectations
  • There is moderate to strong liquidity in the debt markets for both traditional (industrial, apartments, office, retail) assets and new types of assets (such as student housing, medical office, senior housing, self-storage)
  • Anticipate an average volume of office assets trading in 2018 (10-12 sales)

BrickandMortar
Overall, market fundamentals in Greater Hartford are strong and the outlook is positive for 2018, particularly in the Industrial sector.

Andy with YardGoats
Stay tuned for our next post, where we will reveal what our Rhode Island experts covered at this year’s CBRE/NE Rhode Island Market Overview. Did you miss our Boston Market Overview recap? Click here to catch up.

This slideshow requires JavaScript.

 

Just Released: CBRE/NE 2018 New England Market Outlook

2018_NEMO_NEBlog_01