EXECUTIVE SUMMARY
• Officemarketfundamentalsshouldcontinuetosee
improvement, especially inmarketsdrivenby the
hightechsector.
• Softofficeleasingfundamentalshavebeenoffsetby
strongercapitalflows,especiallyforhigher-quality,
ClassAproduct.Yield-orientedinvestors,however,
willbegintofanouttosecondarymarkets.
• Office investors in keygatewaymarketswill con-
tinue to accept lower returns given the still-low
interest rate environment. They should consider
underwritingmuchhigher interest rates,however,
inthemediumterm.
ECONOMIC TRENDS
U.S.economicdataturnedincreasinglypositivebeginning
inthefourthquarterof2011.Riskassetsralliedsignificantly
inQ12012,reflectingbetterjobsandGDPdata,aswell
as the continuation of accommodative Federal Reserve
monetarypolicyandreducedtaileventriskinEurope.The
EuropeanCentralBank’sliquidityoperationsandthesuc-
cessfulcompletionofGreece’sdebtrestructuringrendered
thesovereigndebtcrisis inEuropelessofathreattoU.S.
economicgrowththisyear.Morerecentmarketvolatilityon
thebackofconcernsregardingrenewedfearsofaEurozone
debtcrisisseemstobeoverdone.
Economic Growth and Office Employment: RealGDP
growthaveraged3.0%duringQ42011,largelystemming
from a surge in inventories. The latest Federal Reserve
BeigeBookwasbrighterintoneaswell,withmostdistricts
reportingamodesttomoderatepaceofgrowth.Withrising
vehicle purchases andwarmerweather fueling increased
consumer spending,weexpectU.S.GDPgrowth toaver-
agebetween2.0% to2.5% in2012and2013.This rate
remainsbelowtheestimatedU.S.growthtrendrateof3.0%
givenuncertaintiessurroundingafiscaldraglaterthisyear.
Anumberoftaxbreaksaresettoexpireanduncertaintyis
pervasiveregardinganyresolutionaroundtheU.S.federal
budget going forward. Geopolitical tensions and anxiety
aboutworldoilsupplieshavealsodrivenupoilprices.In
turn, rising gasoline prices at the pumphas emergedas
akey risk to the strengthofU.S.economicgrowthgoing
forward.
Employmentgainshavegenerallybeenmoreupbeatuntil
this most recent month. Up until March, the U.S. labor
markethadbeendoingbetter thanmostothereconomic
indicators.U.S.firmsaddedonly120,000jobs inMarch,
far fewer than the consensus expectations of 200,000.
Theaverageof thepast threemonths,however, suggests
abrighterpictureforjobs.Duringthefirstthreemonthsof
2012, job gains averaged 212,000 permonth, and the
unemploymentratefellto8.2%.
Theunusuallymildwinterweathermayhaveshiftedhiring
forward,especiallyinretailandconstruction.Weexpectthe
labormarkettocontinueimprovingthisyearandbeyond.
Manyotherindicatorscorroboratestrongerjobgainsgoing
©2012,CBRE,Inc.
Q1 2012
CBRE
www.cbre.com/research
Global Research and Consulting
U.S. Office MarketViewOffice Outlook: Seeing Through the Fog
Figure 1: The U.S. Economy and the Labor Market (Annual Percent Change)
2005 2008 20122009 20132006 2007 2011 2015 2016 20172010 2014
12%
10%
8%
4%
6%
2%
-2%
-4%
Real GDP GrowthUnemployment Rate
Source:IHSGlobalInsight,March2012
-6%
0%
Forecast
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forward,includingdecliningjoblessclaims,afallinjob
cutsasannouncedbyChallenger,betterISMjobmet-
rics,andreportedincreasesintheriseindemandfor
workersatsmaller-andmedium-sizedfirms.For2012,
weexpect jobgains toaverage165,000 to185,000
permonth.Jobgainsshouldaccelerateby2013.The
unemploymentratewillcontinuetofalltobelow8.0%
overthenexttwoyears.
Akeydriverofofficeabsorptionisoffice-usingemploy-
mentintheFinance,InsuranceandRealEstatesectors
aswellasProfessionalServices.Figure2tracksgrowth
in“officeemployment”whichcombinesthesetwosec-
tors.Officejobgrowthslowedmarkedlyinboth2008
and2009,registeringamuchsharperdeclinethanthe
overalldeteriorationintotalemployment.Thefinancial
sector,inparticular,wasattheheartofthelatestdown-
turn, leading to a disproportionate share of layoffs.
Since thedownturn,however,bothfinancial corpora-
tions and non-financial corporations have improved
theirbalancesheets.Thedeleveragingprocessacross
U.S.bankshasbeenvery successfuland thedebt-to-
nominal GDP ratios among U.S. banks are back to
2002historicallevels.Non-financialcorporationshave
pristinebalancesheets,sittingonanestimated$2tril-
lionincash.
Goingforward,firmswillcontinuehiringasitisincreas-
inglydifficulttogetmoreoutputfromtheirexistinglean
workforces.Officeemploymentshouldcontinuetore-
boundin2012andreallygainsteamin2013,driving
betterabsorptionofofficespaceoverthemediumterm.
Business Spending: More recently, market partici-
pantshavegrownincreasinglyconcernedaboutslow-
inggrowthinEuropeandChinaandwhatthepotential
impactmaybeontheU.S.growthtrajectory.Webelieve
thattheserisksareoverblowninlargepartsincethere
issignificantpent-updemandbybothconsumersand
U.S. corporations that should drive robust domestic
demand incomingquarters.Weexpect thatbusiness
spending, especially on software and equipment,
should supportU.S. economicgrowthgoing forward.
Asnoted,businessesremainflushwithcashandthey
need to address replacement needs that have been
neglectedduringthepastrecession.Spendinggrowth
shouldaveragearound8%peryearthrough2013.
Consumer Spending:Consumptionaccountsforthe
largestportionof theU.S.economyand its trajectory
iskeytooureconomicgrowthforecastgoingforward.
Realconsumerspendinghasheldupbetterthanwhatis
suggestedbysentimentreadings.Improvinghousehold
balancesheetsandstrongerlabormarketsaresupport-
ing increased consumption among U.S. households.
RecentreportsfromtheFederalReserve’sFlowofFunds
report indicate continued improvement in household
finances. Buying power has also improved given the
dramaticeasingincreditconditionsthisyear.Theratio
ofhouseholdliquidassetstoliabilitiesroseduringQ4
2011,given thesharp rally in stockprices. Improved
householdfinancesandeasingcreditconditionsshould
supportmodestgainsinconsumerspendingin2012.
Thedataalsosuggeststhathouseholddeleveragingis
nolongerathreattoU.S.economicexpansion.
Consumers, however, face a number of headwinds
including still-high debt burdens, house prices that
continuetofall,lackofmeaningfulwagegrowth,and
Figure 2: Office-Using Employment (Annual Percent Change)
2005 2008 20122009 20132006 2007 20112002 2003 2004 201020012000
6%
4%
2%
-2%
-4%
Source: Economy.com and CBRE Econometric AdvisorsOfficeOutlook data as ofQ42011
-8%
-6%
0%
Forecast
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aseverelackofconfidenceinthegovernment’sability
to execute policies that improve economic prospects.
Overall,ourexpectationforconsumerspendinggrowth
is1.9%thisyear,andconsumptiongrowthshouldac-
celerateto2.5%in2013.
Modesteconomicgrowth,healthierfinancialinstitutions
and the greater need by businesses to cure deferred
CAPEX investments should support greater demand
foroffice-usingworkers.The likelihoodthoughis that
recoverywillbemoderateatbestinthenear-termuntil
astrongerrecoverytakesrootafter2013.
OFFICE CAPITAL MARKET TRENDS
Officetransactionvolumesincreasedby37%in2011,
totaling $63.5 billion as reported by Real Capital
Analytics(RCA).Thisincludesthesaleofapproximately
2,200officeassets.CBDofficeproperty continued to
account for themajority of sales.Cap rates forCBD
marketslocatedinBoston,Chicago,SanFrancisco,and
LosAngelescontinuedtocompress.Bycontrast,office
cap rates inManhattanand theDistrict ofColumbia
havestabilized.RCAreportsthatinvestorsareshifting
focus to the higher quality office assets in suburban
markets. Most of the sales in 2011 were comprised
of single-asset deals, with portfolio transactions less
frequent. During Q1 2012, CBD office transactions
continue to dominate investment activity. However,
totalsaleshavebeenmodestyeartodate.AstheU.S.
economycontinuestogrowmodestly,weexpectgreater
officeinvestmentvolumein2012ascomparedto2011.
Thetotalreturnforofficepropertyasmeasuredbythe
NCREIFPropertyIndex(NPI)was13.65%in2011,trail-
ingthe14.26%overallNPIreturn.Officereturnswere
amongtheweakestinthepropertysectors.Despitethe
modestgains in returns,marketswith largeexposure
tothehightech,healthcareandenergysectorsoutper-
formed.Officereturns in theBoston/Cambridge,San
Francisco,SanJoseandSeattleCBDsallachievedtotal
returns in excess of 23.0%. By contrast, office return
performanceintheWashington,DC,areahasslowed
giventheuncertaintyregardingdeficitreductionmea-
suresanditsimpactonlocalmarketfundamentals.
Whilewe continue to expect improving officemarket
fundamentals, investment performance of properties
maycomeunderpressure.Officerentsmaycontinue
to rolldownasexisting leasesexpire,placing further
downwardpressureonbuildingnetoperatingincome.
Moreover,giventhemodestgrowthexpectationsforthe
U.S. economy in the near term, further appreciation
trendsmayalsoslow.Asaresult,NPIofficereturnsthis
yearshouldtrailthoseseenin2011.
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OFFICE MARKET CONDITIONS
Theofficemarketremainshighlybifurcated,withdowntownofficespaceintheprimarymarketsimprovingsolidlywhile
marketconditionsinthesuburbanofficesectorremainsoft.Averageofficevacancyratesacrossbothdowntownand
suburbansubmarketswereunchangedat16.0%inQ12012.Despiteimprovedjob
gains in theU.S., shadow vacant office space continues toweighonofficemarket
fundamentals.Thedowntownmarketshadoutperformedthroughmuchof2011,with
vacancyratesdownto12.7%byyear-end2011comparedto17.8%forthesuburbs.
InQ12012,suburbanofficemarketsoutperformedthedowntownmarketsasCBD
vacancy rates actually increased by 10 bps. A recovery in small business hiring is
improving the less-costly suburbanofficemarkets.Spreadsbetweendowntownand
suburbanofficemarketsstillremainhigh,however.
Corporate occupiers have also taken advantage of low office rents and increased
concessionstoleasebetterqualityspace.The“flighttoquality”hasledtosignificant
improvements in theClassAofficestock inmostmarkets. In thestrongestmarkets,
wheredemandforqualityspaceisgreaterthanwhatisavailable,rents,concessions
andTIpackagesaremovinginfavorofthelandlords.Capratesonsuchhigh-qualityofficeassetsingatewaymarkets
continuetocompress.Inlightofpersistentbroadermarketvolatilityanduncertainty,risk-averseinvestorsappreciate
thesecurityofsteadycashflowfromhigher-qualityofficeassetswithTriple-A-creditcorporateoccupiers.During2012,
therelativelyhighvaluationsforClassAspacemayencourageyield-hungryinvestorstoshifttosecondarymarketsand
ClassB/Cofficespace.
Officemarketfundamentalsshouldcontinuetoimprovethrough2012.Recentemploymentdata,especiallyintheoffice-
usingservicesector,hasbeenmorepositive.Thelackofnewsupplyisanotherimportantfactorinthesustainedimprove-
mentinofficemarketconditions.Weexpectthebetter-qualityofficespacelocatedintheCBDstoleadtherecovery.
National Quick Stats
Change from last
Current Qtr. Yr.
Vacancy Rate 16.0%
Lease Rate $25.31
Net Absorption* -0.70 MSF
Construction 1.5 MSF
*Thearrowsindicateatrendanddonotrepresentapositiveornegative value for theunderlyingstatistic (e.g.netabsorptioncouldbenegative,butstillrepresentapositivetrendoverthetimeperiod).
Figure 3: U.S. Suburban Supply and Demand
2007
Q120
07Q2
2007
Q320
07Q4
2008
Q120
08Q2
2008
Q320
08Q4
2009
Q120
09Q2
2009
Q320
09Q4
2010
Q120
10Q2
2010
Q320
10Q4
2011
Q120
11Q2
2011
Q320
11Q4
2012
Q1
CompletionsAbsorption
Vacancy Rate
Source:CBREEconometricAdvisors
-5
16%
12%
8%
-15 7%
2018%
14%
10%
25 19%
-10
15%
11%
10
15
17%
13%
9%
5
Completions and Absorption (millions of square feet) Vacancy Rate (%)
0
Figure 4: U.S. Downtown Supply and Demand
2007
Q120
07Q2
2007
Q320
07Q4
2008
Q120
08Q2
2008
Q320
08Q4
2009
Q120
09Q2
2009
Q320
09Q4
2010
Q120
10Q2
2010
Q320
10Q4
2011
Q120
11Q2
2011
Q320
11Q4
2012
Q1
CompletionsAbsorption
Vacancy Rate
Source:CBREEconometricAdvisors
-2
11%
-6
9%
-10 7%
813%
10 14%
-4
10%
-88%
4
6
12%
2
Completions and Absorption (millions of square feet) Vacancy Rate (%)
0
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Whileyear-over-yearvacancyisdown40bpsintheU.S.DowntownOfficemarketsoverall,itincreased10bpsquarter-
over-quarterinQ12012,suggestingaslowingintherecovery,asfirmshaveretrenchedinresponsetouncertaintiesin
theglobaleconomy.Recentpositivetrendsinemploymentandleasingactivityincertainindustriessuchastechnology
haveresultedinamixedpictureamongseveralmajorU.S.officemarkets.Marketsstronginthetechnologysector,like
SanFranciscoandSeattle,experiencedthehighestlevelsofpositiveabsorption.Newphraseslike“BisthenewA”and
“BCool”enterourcommercialrealestatejargonastechnology/information/mediafirmsincreasetheirfootprintand
moretraditionalusersofofficespace,suchasfinancialandrelatedprofessionalservicesfirms,pausetoweightheir
options.BothManhattanandWashington,DC,experiencedaslowstartto2012whileChicagocontinueditsstreakof
positiveabsorption.
OFFICE MARKET SNAPSHOTS
New York
The Manhattan office market, which boasts the low-
est vacancy rate in theU.S.,hadaslowstart to2012
as many corporate tenants respond to an uncertain
economic environment with a wait-and-see posture.
Negativeabsorptionof3millionsq.ft.resultedina10-
bps increase in vacancy quarter-over-quarter to7.6%.
ThisisinstarkcontrasttoQ12011,whennegativeab-
sorptiontotaled104,000sq.ft.Thebulkofthisnegative
absorptioninQ12012,or2.1millionsq.ft.,occurred
intheMidtownmarket,wheretherecoverywhichstarted
inthesecondhalfof2010hasslowed.Midtownleasing
activityfellshortofthefive-yearaverageforeverymonth
ofthequarterandfellshortofQ12011activityby39%,
astypicalMidtowntenantssuchasfinancialandprofes-
sionalservicesfirmsdelayedmakinglong-termleasing
decisions. Three out of the four transactions above
100,000sq.ft.inMidtownwererenewals.
AbrightspotinManhattanhasbeentheMidtownSouth
submarket,whichisparticularlyattractivetocreativeand
technologyfirms.Leasingactivityhashoveredjustabove
the five-year average everymonth during 2012.With
vacancyat6%,thisisthetightestofthethreeManhattan
markets.Italsoexperiencedrentalrategrowthof$3.45
quarter-over-quarter. TI allowances have also come
downaslandlordsnegotiatefromastrongerposition.
TheManhattanmarkettowatchremainsDowntown,with
roughly7.8millionsq.ft.ofofficespacepotentiallycom-
ingonlinebyyear-end2015.FourWorldTradeCenter,
with2.3million sq. ft., isexpected tobeavailable for
tenantconstructionattheendof2013,followedbythe
3million-sq.-ft.1WorldTradeCenter inearly tomid-
2014.Ontheheelsofa1million-sq.-ft.leaseattheend
of2011,CondéNast’s139,000-sq.-ft.expansionat1
WorldTradeCenterduringQ12012addsconfidence
to theviabilityanddiversenatureof thismarket.With
theMidtown / Downtown pricing delta at 37%, large
blocksofavailabilityathistorichighsandanimpending
wealthofnewClassAconstruction,Downtownwillbea
considerationformanytenantsinthemarket.
Washington, DC
ThevacancyrateintheWashington,DC,Downtownof-
ficemarketincreasedby40bpsinQ12012to10.2%.
Themaindriverofover500,000sq.ft.ofnegativeab-
sorptionwasGSAmove-outs, particularly in theCBD,
as leasing by the federal government, under pressure
to become more efficient and cut spending, virtually
groundtoahalt.Withafairlylargeinventoryofshadow
space, includingover300,000sq.ft.ofSecuritiesand
ExchangeCommissionspaceatConstitutionCenter in
Southwest,GSAleasingisprojectedtobelimitedforat
leastthenextsixmonths.Q12012sawonlyoneGSA
lease transaction of approximately 30,000 sq. ft. By
contrast,theGSAleasedatotalofover660,000sq.ft.
inQ12011,andsignednineteenofthelargesttransac-
tionsovertheyear.
Lawfirms,historicallyactivelessorsofofficespaceinthe
Downtownmarket, have exhibited a tendency toward
smaller average deal size and a focus on space ef-
ficiencies.WhilethelargesttransactioninQ12012was
signedbylawfirmGibsonDunnat205,000sq.ft.,the
averagelawfirmdealsizehasshrunk.
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Theprofessionalservices industryadded2,000jobsin
the January 2011 to January 2012 time period, and
otherservicesadded3,100jobs.Thesegains,however,
wereoffsetbyadecreaseof4,100jobsinthegovern-
ment sector, as pressure to cut back and uncertainty
aroundthepresidentialelectiontookhold.
Despite the softened fundamentals, developers are
positioningandmarketingnewprojectsinthehopesof
meetingdemandwhenthemarketrecovers.Withover
6million sq. ft. of space either site-plan-approved or
significantly through the approval process, new con-
structioncouldbeginoncedemandpicksuporalead
tenantcommits.
Chicago
TheDowntownChicagoofficemarketexperienced the
fourth-highestlevelofpositiveabsorptioninthecountry.
Thiswastheseventhstraightquarterofpositiveabsorp-
tionfortheCBD.Thevacancyrate,at14.9%,declined
30bpssince lastquarterand170bpsyear-over-year.
This is in starkcontrast to thesuburbanofficemarket,
withavacancyrateof22.6%,andamuchslowerrecov-
ery.Moresuburbantenantsareweighingtheoptionof
movingdowntowntotapthelarge,well-educatedlabor
pool.IntheCBD,leasingactivitybythetechnologyand
marketing/advertising industries has experienced the
mostgrowth,while leasingactivity by thefinanceand
governmentsectorshasdeclined.
LeasingactivityisexpectedtoremainstrongintheCBD,
asevidencedby12.8millionsq.ft.ofactivetenantsin
themarketwithspacerequirementsof20,000sq.ft.and
above. This compares to 11.9million sq. ft. of active
tenants in Q1 2011. With Class A space tightening,
averageaskingrentsalreadyabove2007levelsandno
significantnewconstructioninthepipeline, thereis in-
creasedpotentialfornewdevelopmenttobreakground
sometimein2013.
The River North submarket boasts the lowest vacancy
rateintheChicagoCBDat6.9%.Thissmall,primarily
ClassBmarkethasgeneratedalotofinterestfromcre-
ativeandtechnologystartupfirms.RiverNorthClassB
averageaskingrentsarealsothelowestintheChicago
CBD,butwilllikelybeunderupwardpressure,asClass
Bvacancycurrentlystandsat3.4%.
San Francisco
TheSanFranciscoDowntownofficemarketrecordedthe
strongestdemandofallU.S.officemarkets,withpositive
absorptionof867,493sq.ft.Vacancydropped120bps
to10%,andrentsincreased12%fromthepriorquarter
to$43.02persq.ft.inQ12012.Growthfromthetech-
nology sector drove demand and technology oriented
business accounted for nearly all of the quarter’s top
transactions,withSalesForce.comexecuting the largest
leaseinover10yearsat400,000sq.ft.Othernotable
transactionswereacombined441,000sq.ft.leasedby
RiverbendTechnologiesandMacy’s.comat680Folsom
street.Leasingactivity totaled2.4millionsq. ft.during
thequarter.
TheRincon/SouthBeachandMultimediaGulchsubmar-
ketshavegeneratedthemosttenantdemand,asexhib-
ited by vacancy rates of 2.9% and 6.4%, respectively.
Thesesubmarketsrepresentsomeofthehighestoverall
averagerental ratesat$46.94persq. ft.and$48.81
persq.ft.,respectively.Inthesetech-heavysubmarkets,
thespreadbetweenClassAandBvacancyratesistight,
asClassBspacewithopenfloorplans,exposedbrick
anda loft feel isoftenpreferred.“B is thenewA”has
becomeafamiliarphrase.
At10%,DowntownSanFranciscovacancyisamongthe
lowest in the country, and has decreased by 450 bps
overthecourseofthepastyear.Largespaceuserswill
finditincreasinglyhardtofindsuitablelocations,ascon-
structionactivityremainslimited.Thereisonlyoneoffice
projectcurrentlyunderwayintheSouthFinancialdistrict,
which is home to the Transbay redevelopment district.
This area will be a hotbed of activity, with significant
newconstructionstartsexpectedinthenext12months
potentiallyadding1.9millionsq.ft.tothemarket.
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Figure 5: Largest 25 Office Markets - Q1 2012
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Lowest Vacancy Rates
Metropolitan % Downtown % Suburban %
Manhattan 7.6 Manhattan,MidtownSouth 6.0 Cambridge 8.2
Cambridge 8.2 Manhattan,Downtown 7.4 Nashville 9.3
SanFrancisco 10.3 Manhattan,Midtown 8.1 Pittsburgh 10.1
Pittsburgh 10.5 Portland 9.7 SanFrancisco 11.0
Nashville 12.1 SanFrancisco 10.0 SanJose 11.4
Highest Vacancy Rates
Metropolitan % Downtown % Suburban %
PalmBeachCounty 27.3 Tucson 30.5 Detroit 27.5
Detroit 27.1 Dallas/Ft.Worth 28.0 PalmBeachCounty 27.3
Phoenix 26.1 St.Louis 25.9 Phoenix 26.8
LasVegas 24.8 Jacksonville 25.7 Sacramento 25.6
VenturaCounty 24.0 Detroit 25.6 LasVegas 25.4
0.7%
Portland
1.2%
1.1%
Ventura County
1.1%
0.6%
Minneapolis/St. Paul
1.1%
0.7%
Kansas City
0.7%
0.6%
Stamford
0.6%
0.7%
Wilmington
1.1%
0.9% 1.4%
Jacksonville
0.7%
-0.6% -0.7%
Nashville
-3.0%
Las Vegas
-0.9%
Orlando
-0.6%
Cleveland
-0.6%
Denver
-0.7%
Cincinnati-0.6% -1.0%
Indianapolis
-0.6%
San Jose
-0.7%
-1.7%
Walnut Creek
-1.7%
-0.7%
Cambridge
-0.7%
-0.7%
Long Island
-0.7%-0.9%
San Francisco
-1.2%
-0.7%
Seattle
-1.3%
-0.6% -0.7%
Houston
Metropolitan Downtown Suburban
1.7%
Salt Lake City
1.0%
Virginia Northern
-0.8%
Ft. Lauderdale
-1.2%
1.0%
-0.9% -1.5%
Austin
1.0%
0.6%
Washington, DC
0.6%
Phoenix
0.8%
0.5%
Westchester County
0.6%
Hartford
Figure 7: Largest Quarterly Increases and Decreases*
*Percentagepointchange
Source:CBREResearch
Figure 6: U.S. Office Market Snapshot
Source:CBREResearch
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Figure 8: Office VacancyDowntown Suburban Metropolitan
Market Area Size Rank Q1 2012 Q4 2011 Q1 2011 Q1 2012 Q4 2011 Q1 2011 Q1 2012 Q4 2011 Q1 2011
Baltimore 20 19.0 18.8 19.4 15.7 15.5 15.4 16.8 16.6 16.7Boston 7 11.5 11.9 11.2 17.9 17.8 17.4 15.3 15.4 14.9Cambridge 50 N/A N/A N/A 8.2 8.9 11.4 8.2 8.9 11.4Hartford 46 24.9 25.2 26.1 20.3 19.7 19.6 22.2 21.9 22.2LongIsland 31 N/A N/A N/A 14.8 15.5 15.4 14.8 15.5 15.4Manhattan,Downtown 1 7.4 7.5 8.9 N/A N/A N/A 7.6 7.5 8.3Manhattan,Midtown * 8.1 8.0 8.4 N/A N/A N/A N/A N/A N/A
Manhattan,MidtownSouth * 6.0 5.9 7.3 N/A N/A N/A N/A N/A N/AMarylandSuburban ** N/A N/A N/A 15.0 14.9 14.3 N/A N/A N/ANewJersey 8 N/A N/A N/A 16.3 16.5 16.5 16.3 16.5 16.5Philadelphia 12 14.1 14.0 14.0 21.7 22.0 21.6 18.4 18.6 18.4Pittsburgh 16 10.9 11.1 12.5 10.1 10.5 10.8 10.5 10.8 11.7Stamford 26 N/A N/A N/A 20.1 19.5 19.4 20.1 19.5 19.4VirginiaNorthern ** N/A N/A N/A 15.0 14.0 13.7 N/A N/A N/AWashington,DC*** 2 10.2 9.8 10.1 N/A N/A N/A 13.4 12.8 12.7WestchesterCounty 41 N/A N/A N/A 17.5 17.0 16.9 17.5 17.0 16.9Wilmington 52 22.6 21.5 21.3 22.9 22.6 21.6 22.8 22.1 21.5East 9.8 9.7 10.2 16.3 16.1 15.9 13.3 13.2 13.3
Chicago 3 14.9 15.2 16.6 22.6 22.7 23.3 18.4 18.6 19.7Cincinnati 34 23.4 23.0 21.7 23.6 24.3 24.4 23.5 23.8 23.3Cleveland 36 19.2 19.8 23.3 22.8 22.8 23.6 21.1 21.4 23.5Columbus 39 16.9 16.9 17.4 19.7 19.6 20.9 18.7 18.7 19.7Detroit 17 25.6 25.7 27.7 27.5 27.9 28.3 27.1 27.4 28.2Indianapolis 37 17.7 17.6 19.9 20.2 21.2 22.9 19.4 20.0 21.9KansasCity 23 17.0 16.4 16.4 17.9 17.2 16.7 17.6 16.9 16.6Milwaukee 28 18.1 17.9 20.2 15.9 16.3 17.5 16.7 16.9 18.5Minneapolis/St.Paul 18 19.6 19.6 19.8 19.8 18.7 20.8 19.7 19.1 20.3St.Louis 24 25.9 25.7 25.8 14.0 13.7 14.0 17.6 17.3 17.5Midwest 17.8 17.9 19.1 21.1 21.2 21.9 19.8 19.9 20.7
Atlanta 9 23.9 24.0 25.0 23.1 23.0 22.6 23.4 23.3 23.4Austin 32 14.3 13.3 16.2 17.0 18.5 24.1 16.4 17.3 22.3Charlotte 33 14.0 13.7 11.3 24.3 23.8 25.0 20.1 19.7 19.4Dallas/Ft.Worth 4 28.0 27.7 26.8 18.7 19.1 20.1 19.9 20.3 21.0Ft.Lauderdale 44 21.8 20.8 20.2 18.3 19.5 18.8 19.0 19.8 19.1Houston 6 10.7 10.7 11.7 15.5 16.2 17.1 14.4 15.0 15.9Jacksonville 48 25.7 24.3 26.3 20.4 19.7 20.1 22.0 21.1 22.0Miami 29 21.8 22.0 20.1 18.0 17.7 17.5 19.3 19.1 18.4Nashville 40 21.3 21.8 24.5 9.3 10.0 10.5 12.1 12.7 13.7Orlando 35 15.7 16.6 17.6 19.9 19.9 21.4 19.0 19.2 20.6PalmBeachCounty 49 N/A N/A N/A 27.3 27.3 26.0 27.3 27.3 26.0SanAntonio 45 23.7 23.7 25.3 16.1 16.3 16.2 17.5 17.7 17.9Tampa 25 16.7 16.6 17.4 21.0 20.5 22.5 20.3 19.9 21.7South 19.7 19.5 19.9 18.7 19.0 19.9 18.9 19.2 19.9
Albuquerque 53 22.0 22.1 19.9 18.3 17.8 18.2 19.0 18.7 18.5Denver 11 13.0 13.6 14.1 16.0 16.4 16.6 15.3 15.7 16.0Honolulu 54 15.6 16.1 14.7 14.7 15.1 12.7 15.1 15.5 13.6InlandEmpire 47 N/A N/A N/A 22.7 22.8 24.0 22.7 22.8 24.0LasVegas 38 11.9 14.9 15.4 25.4 25.6 24.8 24.8 25.0 24.3LosAngeles 5 18.3 18.5 17.3 16.9 17.4 16.3 17.2 17.6 16.5Oakland 43 13.0 13.0 13.9 14.2 14.8 16.8 13.8 14.1 15.7OrangeCounty 13 N/A N/A N/A 15.0 15.3 15.9 15.0 15.3 15.9Phoenix 15 23.1 22.3 22.1 26.8 26.3 27.5 26.1 25.5 26.4Portland 27 9.7 9.6 9.5 20.3 19.1 20.3 15.2 14.5 15.1Sacramento 22 16.4 16.3 15.8 25.6 25.6 24.4 23.7 23.6 22.6SaltLakeCity 42 17.4 15.7 16.8 14.5 15.0 17.5 15.5 15.3 17.3SanDiego 19 18.6 18.3 19.3 16.2 16.3 17.2 16.6 16.6 17.6SanFrancisco 10 10.0 11.2 14.5 11.0 11.0 12.0 10.3 11.2 13.6SanJose 21 23.5 23.6 23.2 11.4 12.1 17.3 13.2 13.8 18.1Seattle 14 16.3 17.6 18.1 17.9 18.1 19.4 17.2 17.9 18.8Tucson 55 30.5 30.1 20.7 16.7 16.3 17.3 18.3 17.9 17.7VenturaCounty 51 N/A N/A N/A 24.0 22.9 22.9 24.0 22.9 22.9WalnutCreek 30 N/A N/A N/A 16.9 18.6 18.2 16.9 18.6 18.2
West 14.6 15.2 16.1 17.8 18.1 18.5 17.0 17.4 17.9
United States 12.8 12.7 13.2 17.8 17.8 18.3 16.0 16.0 16.5
*IncludedinManhattan,Downtown**IncludedinWashington,DCmetro***Washington,DC,metrofiguresincludeMarylandSuburban,VirginiaNorthernandWashington,DC,DowntownU.S.nationalfiguresprovidedbyCBREEconometricAdvisors(CBREEA),allotherfigurescompiledbyCBREResearch
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