San Francisco Office Market Stays Hot
San Francisco office market has been frothy since recovering in 2004. The recovery has been so fast and steep that developers are starting to construct properties speculatively, while investors acquire properties with large chunks of vacant space. San Francisco’s office market’s net positive absorption of 356,140 sf in Q2 included 149,812 sf in the south financial district and 87,990 sf on the north waterfront, according to Grubb & Ellis. Midyear citywide class-A rents were up 16.6% since a year ago, to $38/sf, while average sales prices ranged from $253/sf to $395/sf.

Milwaukee-Area Industrial Market Booming
The southeastern Wisconsin industrial market is booming, according to a survey by Colliers Barry Milwaukee. Transaction volumes on sale and lease industrial space for the first half of 2006 have increased significantly over last year. Among the largest transactions in recent months is the sale a 190,000 sf Huffy Sports office and assembly complex in Sussex, WI for $8.5 million.

Boston Office Market Sizzles
The Boston office market is white hot. The city’s office vacancy rate has plummeted to 9.5% from 14 % at the end of last year, according to Cushman & Wakefield. As a result, average asking rents have jumped to nearly $34/sf, from the $31/sf recorded last year. Investors have responded by spending $5 billion on acquisitions, according to Real Capital Analytics. On average, Boston office properties are trading hands for about $250/sf, well above last year’s average of $219/sf. The major factor in Boston’s resurgence is absorption. Positive job growth and a lack of new construction have reversed the trend.

Las Vegas Apartment Market Remains Hot
Strong occupancy in apartment buildings during Q2 sent rents climbing in Las Vegas, according to a report by RealFacts. The average rent in the Las Vegas metropolitan area was $847/month, up 1.6% from $834/month in Q1 and up 5.3% from $804 during the same period last year. Las Vegas’ Henderson submarket posted the highest average rent at $945/month with 96.3% occupancy.

Dallas Sees Multifamily Growth
Dallas’ central business district has for years cried out for more residential units. Developers are beginning to heed the call. The long-overlooked part of the city should have about 4,400 condominium and apartment units by next year, up from fewer than 500 units in 1999. The neighborhood, which encompasses 1.3 square miles, already has about 3,000 residents. That number is expected to triple by 2010.

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