Office and Industrial Real Estate in the Buffalo Area 

2017 Trends and Observations

OFFICE

SALE MARKET:  Most office sale transactions are driven by users rather than investors.  Smaller office buildings in the first-ring suburbs continue to sell at relatively strong prices to users/occupiers  due to very short supply.    Prices for larger suburban class “B” and flex office buildings are  relatively weaker than in the past, purchased by user/occupiers.  Office buildings outside of key first-ring suburban office markets require longer marketing campaigns, due to lower transaction velocity.

LEASING MARKET:

FOR TENANTS:  The leasing market in suburban Buffalo and in the CBD spells opportunity for Tenants seeking new leases or weighing the possibility of renewing or recasting current leases.    How will you know you if you obtained the best possible terms and conditions for a new lease?  Does your current lease rate or option to renew rate reflect the current market conditions?  A disciplined, well-informed, competitive market-driven process delivers the optimum results.  Call me for a no obligations, confidential meeting to evaluate your options.  This process should commence 18-24 months prior to lease expiration..

FOR LANDLORDS:  Marketing campaigns for office-space-for-lease are very challenging due to the large amount of supply on the market.   These campaigns must be aggressive, creative, and proactively bring the widest possible effective reach to correctly targeted tenants.   How are these campaigns implemented?  If you currently lease too much space or plan to close an office space still under lease we can discuss how it can be marketed for sublease.-

INDUSTRIAL

Short supply.  Prices are rising slightly.  Buildings are selling promptly, some before marketing materials are prepared or before a property is listed.

Tenants and buyers are advised  to conduct well informed, proactive canvassing.  To learn how the canvassing is  implemented, call me to schedule a no-obligations confidential meeting.

One leased fee real estate transaction was completed in the last quarter.  Cap rates for industrial buildings remained mostly unchanged.

716-628-3477     716-200-0151      dschiller@pyramidbrokerage.com