Jul 18, 2018 - 0 Comments - Office Property -

Video: Real Capital Analytics SVP Jim Costello Provide an Update on the Office Market

Jim Costello, Senior Vice President at Real Capital Analytics, appears on The Commercial Real Estate Show to discuss the state of the office market in the U.S. He discusses segmentation in the office market, with deal volume down more in the central business district (CBD) market that in the suburban markets, which he submits is due to the CBD markets being priced to perfection, i.e. very fully priced. He discusses cap rates, noting that they have edged up ever slightly as interest rates have increased. Another topic covered is the cost of living in expensive markets, notably Silicon Valley, making it difficult to find workers to put in office buildings, perhaps thus constraining demand. Finally, he predicts Washington, D.C. as the location for Amazon’s HQ2, noting that its CEO Jeff Bezos is building a home there and owns the Washington Post. Sounds like a good call to me.

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