National Real Estate Investor has issued a list of “pretty good bets” for office investing in 2015 and Pittsburgh is the first city mentioned.
Elaine Misonzhnik reports:
“Pittsburgh may not have the glitz of a gateway city, but what it does have is a moderate vacancy rate and steadily rising rents, combined with an attractive cap rate. Since the recession, Pittsburgh has recovered 244 percent of its office-using jobs, according to Colliers (the average for the nation is roughly 125 percent). Avison Young reports that there is a shortage of class-A office space in the market, with the city ending 2014 with a class-A vacancy rate of 7.9 percent. New product is coming, with 3 million sq. ft. of construction in the works, but at an average cap rate of 8.25 percent (according to Colliers), Pittsburgh still looks like a good buy.”
The rankings were based off of reports from Colliers International and Avison Young with research from Real Capital Analytics.
The factors involved in forming the rankings include the amount of new constructed completed in 2014, the amount of construction slated for 2015, employment growth and vacancy/absorption rates.
Also making the list are Boston, Raleigh, San Francisco and Austin, TX.
See the full report here.