I was recently at an investors conference on the west coast. There was
discussion of great increase in tenants in the market looking for
substantial amounts of space. The focus so far is in Gateway cities such as
New York, Washington DC, Boston, San Francisco and Los Angeles. Rates have
already started to rise in San Francisco and New York as precious spaces are
taken off the market. Rents have already risen back to 2007 levels in some
buildings. Computer Software and creative companies are leading the charge
for the best spaces and buildings. Rent spikes are also driving developers
to purchase land and start design of potential additional buildings.
construction. Which is still much greater than existing buildings. Our
economy does not seem to be creating many of the jobs as described above but
we can always hope that jobs get created and our vacancy rates go down.