Bay Area Apartment Market Remain Strong
Northern California’s Bay Area is home to three of the 15 most expensive apartment markets in the United States, according to a report by Forbes.com. San Francisco was ranked as the third priciest apartment market in the United States, followed by the San Jose metro area in 12th place and East Bay, which ranked 13th. The average square-foot cost for newer apartments in San Francisco in the second quarter was $27.17 per sf, a 7.2% increase from Q2 2005.

Denver Office Lease Rates Continue Rise
The Denver office market remains healthy as lease rates approach record levels for class-A office space, according to David Morrison, a vice president at CB Richard Ellis. Denver office space could lease at a rate of $40/sf as early as the first quarter of next year. If rents hit $40/sf, it would be a 31% increase from the current average lease rate of $30.57/sf. Denver’s class-A space peaked in early 2001 at about $33/sf, according to CB Richard Ellis.

Leasing Activity Heats Up in Jersey City
Leasing is heating up in Jersey City, NJ. Deutsche Bank is nearing completion of lease negotiations that will send 1,200 of its Manhattan workers across the river. Additionally, Citigroup recently signed a lease to relocate 1,000 employees in Jersey City. Under New Jersey’s Business Employment Incentive Program, Citigroup will get a tax rebate worth about $37 million and Deutsche will receive about $22 million. More relocation is expected to be driven by cost savings with the average rent for Jersey City waterfront office space at $28.87/sf, compared to an average of $38.75 in downtown Manhattan

Office Relocations move Downtown in NYC
The Midtown New York office market continues losing tenants to the less expensive downtown market. The latest migrations include the Royal Alliance Associates and BearingPoint, Inc., which are both moving to the World Financial Center. The Downtown Alliance says that since the start of 2005, office tenants leaving Midtown have taken 1.5 million sf of downtown space, and that there has been negligible movement in the opposite direction. Midtown rents in the $60-$100/sf range are prompting the relocations to addresses below Chambers Street.

Chicago Condo Sales Slow But Still Strong
Condominium sales in downtown Chicago have dropped roughly 24% in the first six months of 2006, according to a report from Appraisal Research Counselors. Buyers signed contracts or reservations for 3,739 Chicago condominiums through June, a decline from 4,898 in the same period of 2005. Despite the downturn, the sales numbers for this year are still higher than any other year, except 2005.

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