As 2019's second half is well underway, the list of the hottest office markets in the United States contains a few surprises. While well-known markets like New York and San Francisco remain popular with tenants, suburban and secondary markets are also garnering increased buzz. Here are some emerging office markets that go beyond the usual suspects.
Located just a short drive or subway ride from America's leading office market -- Manhattan -- Brooklyn has a great deal to recommend it. It enjoys easy transit, with freeways and excellent proximity to La Guardia and JFK airports. Brooklyn also features lower rents than Manhattan with a more New York vibe. Perfect for companies that want to make a statement to the Millennial workforce, Brooklyn offers the benefits of New York City at a lower cost and with fewer downsides.
While Atlanta might not seem like an emerging office market, the last few years have seen it enjoy an increased level of of both attention and much higher rents. On one recent survey cited in Bisnow, the Midtown and Buckhead submarkets (both north of downtown) posted the world's 6th fastest growing rents -- at a 14 percent year over year increase. With their desirable ITP ("in the Perimeter") location inside the I-285 beltway and located on Peachtree Road, they are convenient to all Atlanta has to offer. Both submarkets also enjoy excellent access to MARTA -- the local rapid rail system -- and to the world's largest airport in Atlanta, south of downtown.
San Francisco Peninsula, CA
For all of the attention paid to 49-square mile San Francisco-proper, the communities to its south on the Peninsula hold some of the hottest office space in America. Enjoying proximity to San Francisco Airport and to Silicon Valley, the Peninsula also enjoys less traffic and a less hectic pace of life. Your business can choose between mid- and high-rise buildings and corporate campus space while also enjoying a much more Mediterranean climate that avoids the fog and cold that plagues the City of San Francisco. In one recent survey, the Peninsula posted a 12.7 percent year-over-year rent gain against San Francisco's 12.2 percent.
While Orlando is a mature tourist market, it has become one of the most prominent emerging office markets in the United States in direct conjunction with its ranking as the top job growth market in America. With job growth occurring in both the business and professional services sectors and in STEM-related categories, Orlando offers a diverse economy. Office users can choose between CBD space and large suburban developments. While it offers the infamous Florida sunshine, its inland location also offers less exposure to weather-related risks than other Sunshine State markets. Its strong tourist economy also supports robust road, rail and moderately-priced air connections.
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