In this report, Cushman & Wakefield analyzes office market fundamentals and compares the current quarter's rental rates to those at the height of the last cycle. All major markets in Florida have rates above the previous cycle's high.
Florida remains a significant job generator. The latest job report shows that the state added over 215,500 new jobs, an increase of 2.5% over the past year, well above the national average of 1.6%.
Rental improvement has been driven by strong demand and job growth in office using employment and significant new construction.
Every major Florida market has new office construction, with the majority speculative space but with substantial leasing activity.
IRS guidance regarding Opportunity Zones may unleash hundreds of billions, if
not trillions, of unrealized gains into qualified, new real estate investment
and Opportunity Zone Businesses, but the clock is ticking to maximize the
program’s advantages, according to Opportunity Zones: Location, Timing,
Capital, a new report released by Cushman & Wakefield.
how does an Opportunity Zone investment work? The program allows for tax on any
capital gains to be deferred, provided those gains are invested in a “Qualified
Opportunity Fund” (QOF) within 180 days. If the Opportunity Zone investment is
held for five or seven years, the basis for the original capital gain is
adjusted upward, thus deferring or reducing tax liability by up to 15%. A QOF
investment that is held for 10 years results in no capital gains tax.
& Wakefield evaluated 45 office and multifamily markets containing 2,700 of
the approximately 8,700 Opportunity Zones across a range of factors indicative
of economic momentum. These factors were divided into three categories: tax and
regulatory, including State Tax Confirmation Status (Wharton Land-Use
Regulation Index); economic drivers (five-year forecasts for population growth,
employment growth and household income); and CRE fundamentals (2019 office and
multifamily inventory, vacancy and growth).
Several Florida markets top the list, as growing populations support economic and commercial real estate fundamentals, and the tax regulatory environments are generally favorable for development. See how Florida markets stack up, below:
August 8, 2019 / admin / Comments Off on The New Workplace: A Millennial Designer’s Perspective
The latest office furniture trends and concepts were recently showcased at this year’s NeoCon, a trade show for the commercial design industry, as several new (and retro) ideas made their way to the showroom floor. A young employee from MKDA, a New York-based space-planning company, shared that elements such as modern acoustical partitions to deaden sound and tech-integrated furniture were some of the cutting-edge design offerings, while phonebooths made a big resurgence. Though she seemed eager to incorporate the new design offerings into her future projects, she also shared that generational differences, tenant preferences and costs may hinder incorporation of latest-and-greatest for the next few years.
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