Last Thursday evening CBRE|Buffalo released its Q4-2015 WNY MarketView reports to a jam-packed crowd of real estate professionals, economic developers and municipal officials from across Western New York. The WNY MarketView reports represent the most detailed analysis of the current state of commercial real estate in the region and serve as an important tool for Buffalo Niagara Enterprise to inform and recruit companies to relocate or expand their operations in Buffalo Niagara.
The program was kicked off by CBRE|Buffalo Managing Director Shana Stegner and keynote speaker Leslie Zemsky provided an upbeat “State of Larkinville” report in which the past, present, and future of the district was reviewed. From there, the CBRE|Buffalo team presented their reports on the local commercial real estate scene, and their findings were eye-opening.
Sarah Cashimere-Warren discussed positive trends for the local office market, with vacancy down 0.5% to 13.5% and average rents in the central business district hovering at an affordable $22-$26/SF for Class A office space and $16-$20/SF for Class B office space. The data show a strong office market, but one facing uncertainty surrounding One Seneca Tower.
Robert Starzynski shared an overview of the multifamily residential market which sees consistent transactional deal flow, especially in the City of Buffalo. The average per unit sales price continues to climb.
Steve Blake announced the lowest industrial vacancy rate (3.6%) in decades and urged developers to continue to do whatever they can to increase inventory in the region in order to reverse the trend that has Buffalo Niagara second only to San Francisco in the lack of industrial building availability. There is, however, land on which to build for industrial customers seeking build-to-suit options.
Michael Clark offered positive retail market news with several national retailers choosing Buffalo Niagara for new locations. Available retail inventory is being in-filled, but the region is still a low-cost area for retailers and restaurateurs to do business. Concern expressed by these operators is the proposed minimum wage hike, which could hinder future retail developments.
The CBRE|Buffalo MarketView reports are available for download on our website: http://buffaloniagara.org/RealEstate/MarketViewReports
By Matthew Hubacher, Research Manager