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Could supply be decreasing?

During the last quarter of 1992 and the beginning of 1993, we have seen a substantial increase in the amount of activity at all of our developments. With a diversity of product type spread throughout the metropolitan region, we have also seen a stabilization of rental rates and look for increases in market rents within the next 12 to 18 months.

While there remains an abundance of available space both in the office/hightech market and the suburban office market, the availability of this space in new mixed use master planned developments, along with larger blocks of Class A office space (50,000 square feet plus), both seem to be decreasing.

Just as the office market is experiencing a "Flight to Quality," so too are many high-tech and single story office users realizing the value of locating in a high quality master planned business center where the cost of occupancy is not much higher than that of many older free-standing buildings. These first generation buildings often lack excellent access, corporate identity and surrounding amenities.

As a development company with full in-house capabilities, we are better able to respond quickly to tenants' needs whether it be routine property management or specialized tenant improvements. The practice of maintaining high standards of property management combined with upgrading any and all property types to meet the demands/of today's tenants, will continue to provide us with occupancy levels which exceed 95 percent.

As a result of responsive attention to the needs of our tenants, 1992 continued to provide our commercial portfolio of properties with an occupancy level which exceeded 95 percent. Completing 22 deals totaling over 800,000 square feet was also due in part to aggressive deal making combined with the ability to fund tenant alterations.
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Title Annotation:Review & Forecast, Section III; supply of office space in mixed use master planned developments appears to be decreasing
Author:Van Houten, Richard, Jr.
Publication:Real Estate Weekly
Date:Jan 27, 1993
Previous Article:Telecommuters will require new housing needs.
Next Article:Residential roundup and predictions for '93.

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