Jan 28, 2015 9:12:00 AM

Top Four Markets for Office Space in 2015

By Don Catalano

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Office_Space-11With 2015 already getting started, the country's hottest markets are already attracting tenant inquiries. Whether you are looking at a small office space for a branch operation or considering a new headquarters location, here are four locations that you shouldn't miss.

Boston

New York's smaller northern cousin has more than just a unique accent and historical charm. Home to Harvard and MIT as well as a host of other well-respected universities, Boston offers one of the most educated pools of labor in the world. Businesses from the entire world looking to tap into its ability to deliver the best STEM laborers occupy office space in Boston and in its environs. With Generation Y gradually tapering off and little office development, some analysts predict that Boston could see double-digit rent growth this year as businesses rush to establish a foot hold. With 2015 offering millions of square feet of renewals coming on the market, it could be the last best chance to lease office space.

Houston

Before the downturn in oil prices, Houston was already identified as one of America's hottest office markets. Offering a broad and diverse workforce, business friendly tax and regulatory climate, reasonable cost of living and excellent transportation connections to both the southern half of the United States and to Latin America, Houston offers just about everything that your business could want in a location.

If energy prices remain low, though, Houston could retain all of its benefits but at an even lower price. Since it is highly dependent on the energy sector, lower oil prices generally lead to higher levels of office space vacancy in Houston. This can also reduce rents.

Charlotte

Enjoying a position as America's southern financial center, Charlotte offers great quality of life, ample CBD and suburban office space and low costs of living and doing business. Proximity to North Carolina's research universities centered around Raleigh-Durham gives Charlotte a tech-capable workforce while its financial sector draws global specialized talent. Still a hot market, Charlotte nevertheless has a degree of uncertainty coming from the American Airlines acquisition of US Airways, which could impact operations at its large hub airport.

Salt Lake City

America's best kept secret for technology-friendly office space isn't in California, Massachusetts or Texas. It's located right at the intersection of Interstates 80 and 15 -- Salt Lake City. SLC and the entire Wasatch Front have a long history of serving as a major technology hotbed. At the same time, they offer an excellent location for logistics and one of America's hardest working and most reliable work forces. The University of Utah turns out start ups at a rate competitive to major West and East Coast educational institutions while the state government offers some of the country's best tax and regulatory policies. Adding in relatively low wages, rents and occupancy costs make it an even more attractive location for your company's next office.


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Topics: commercial office space, Office Space, corporate real estate, commercial real estate, tenant tips, CRE, Office Markets, Office Markets 2015

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Don Catalano

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