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  • Writer's pictureColliers | Columbus

THE WEEKLY REVIEW | May 24, 2024


Keeping up with CRE trends is as easy as 1-2-3 with our weekly piece! The Weekly Review is a new blog series that will be released every Friday. The market is constantly growing and adapting to new ventures and ideas, and our goal is to provide up-to-date information into what is happening in both the Columbus and U.S. markets, as well as the commercial real estate industry as a whole. As stories evolve, the Weekly Review will continue to follow along and update our clients and community.


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1

“Four years after the pandemic, sentiments of employers and employees alike are shifting on remote work. Recent surveys show fully remote work is falling out of favor with many employees while a growing number of companies are requiring more time in the office. Some employers are calling for five-day returns. Additionally, the number of high-paying hybrid roles is also vanishing as hiring dynamics shift. But even with those changes, data shows sluggish return rates and a wide variance of remote-work and return-to-office rates across the nation's metro areas — signs that point to an uneven mix of challenges and opportunities in the months to come. “


“The latest data from Kastle Systems, which has been tracking return-to-office rates in major metros based on keycard swipes, shows peak-day occupancy remains at 61.2% of the pre-pandemic rate across the 10 major markets it tracks. Austin (73.7%), Houston (71.6%) and Chicago (71%) have the highest peak-day return rates, while San Jose (47.1%) and Philadelphia (49.6%) have the lowest. Tuesdays are generally the peak day for in-office work, while Friday is the lightest day, according to Kastle's data. The overall occupancy rate has continued to slowly recover in the 10 tracked major metros, with the average now sitting at 51% as of May 15.”


2

“The national rental-housing market has continued to cool, with differing outcomes based on geography and unit type. Several markets in the South posted significant year-over-year declines in apartment rental rates as of April, according to a new Realtor.com analysis. Those declines were led by Nashville, Tennessee, and Austin, Texas, the latter of which has seen an 8.3% annual drop in asking rents and an 11.5% drop since peaking September 2022.”


“And while most rental markets similarly have come off an August or September 2022 peak, a few locations are bucking the trend — including Indianapolis, Milwaukee and Minneapolis, which all experienced record-high rents in April, Realtor.com found. Danielle Hale, chief economist at Realtor.com, said while the Midwest has seen some buildup in supply in recent years, it hasn't occurred there as much as it has in the South. "Rents [in Midwestern markets] continue to be affordable, even after run-ups, which makes them attractive," Hale said. "Even though they are at new highs, and affordability is stretched to where it has been, they continue to be relatively affordable.”


3

“Beachwood-based Site Centers has agreed to sell its interests in six shopping centers – two of them in Central Ohio – for $495 million in cash as it prepares to spinoff its convenience properties as a standalone, publicly traded company. Site Centers has agreed to sell its interests in Easton Market and Polaris Towne Center in Columbus and Kenwood Square in Cincinnati to an affiliate of Pine Tree, which owns and manages retail real estate in Oak Brook, Illinois. The other four properties are in Phoenix, Miami and Portland, Oregon, Site Centers said in a regulatory filing.”


“Site Centers is a publicly traded real estate investment trust that owns and manages open-air shopping centers in high-income suburban communities. The firm said it wants to retain some parcels related to the recent purchase agreement, including the Shops at Polaris in Columbus, for its spinoff of Curbline Properties Corp. The spinoff of Curbline is expected to be completed by Oct. 1. The company says the spinoff will create the first public real estate company focused exclusively on convenience properties in some of wealthiest submarkets in the United States.”





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