CBRE Marketview

CBRE | Syracuse
Syracuse, NY Office & Industrial
www.cbre.com/syracuse Summer 2012
Quick Stats - Office
Vacancy
Rate
Current
Downtown A 15.1%
Downtown B 21.7%
Suburban A 14.2%
Suburban B 12.4%
*Change
from last
report
* The arrows are trend indicators over
the specified time period and do not
represent a positive or negative value.
Lease
Rate**
Current
Downtown A $17.15
Downtown B $13.77
Suburban A $18.21
Suburban B $15.21
*Change
from last
report
** Average lease rate includes heat,
A/C, electric, janitorial service and
taxes.
Quick Stats - Industrial
Vacancy
Rate
Lease
Rate**
Current
14.1%
$3.98
*Change
from last
report
* The arrows are trend indicators over
the specified time period and do not
represent a positive or negative value.
** Average lease rate is triple net,
excluding taxes, insurance and utilities.
The Syracuse OFFICE MarketView includes
multi-tenant, single-tenant and medical
office buildings in Onondaga County,
which encompasses Downtown Syracuse
as well as the suburban office market. All
buildings included in this report have a
minimum of 20,000 sq. ft. of office space
and were identified via qualified office real
estate brokers and office property owners/
managers.
In Downtown Syracuse, 100 buildings
were surveyed, securing a total of over
7.92 million sq. ft. of office space. Class
A space in the Central Business District
averaged $17.15 per sq. ft., with Class
B space averaging $13.77. These rates
were tallied to include electric, heat, air
conditioning and janitorial fees.
The Suburban Market survey includes 81
buildings and accounts for a total of over
5.24 million sq. ft. of office space. Class
A space in the suburbs averaged $18.21
per sq. ft., while Class B rates averaged
$15.21 per sq. ft.
Over the past 6 months, average lease
rates increased for Downtown A and
Suburban B space, while Downtown B and
Suburban A rates decreased.
Hot Topics
• CB Richard Ellis Group, Inc. changed its corporate name
in October 2011 to CBRE Group, Inc.
“This change is the natural next step in the evolution of
our corporate identity,” said Brett White, CBRE’s Chief
Executive Officer. “Increasingly, our clients have come
to know us as CBRE, and our highly visible CBRE logo
has grown into one of the industry’s most powerful and
well recognized brands. Adopting CBRE as our corporate
name simplifies our identity and enables us to further
capitalize on the advantage of our strong brand.”
On a local level, CB Richard Ellis/Syracuse was
renamed CBRE|Syracuse. The Syracuse office provides
commercial real estate brokerage services to the
Syracuse, Watertown, Binghamton, Oswego
and Utica/Rome areas.
• Ed Kiesa, CCIM, Senior Broker, was named
CBRE|Syracuse 2011 Broker of the Year. Notable
The vacancy rate has increased for
Downtown A space, from 12.6% to 15.1%,
but decreased for Downtown Class B, from
26.5% to 21.7%. The vacancy rate has
increased for all Suburban space, from
9.9% to 14.2% for Class A, and 12.3% to
12.4% for Class B.
The Syracuse INDUSTRIAL MarketView
includes single-story commercial/industrial
buildings located in Onondaga County.
All buildings included in this report have
a minimum of 10,000 sq. ft. and were
identified via qualified industrial real estate
brokers and industrial property owners/
managers.
A survey of 101 buildings in the Central
Business District and surrounding suburban
areas secured a total of over 20.64 million
sq. ft. of industrial space. Quoted lease
rates for industrial space decreased over
the past 6 months to an average $3.98 per
sq. ft. These rates were tallied to exclude
taxes, insurance and utilities (NNN).
The industrial vacancy rate for Onondaga
County is 14.1%, which is an increase from
the vacancy rate reported last summer.
deals were with Empower Federal Credit Union, which
purchased a branch at 3700 W. Genesee St., Camillus
for $1,075,000, and their corporate headquarters at
1 Needle Lane, North Syracuse; as well as the sale
of 114-116 Hawley Ave., Syracuse, a 14,672 sq. ft.
wholesale parts showroom with warehouse to Housing
Visions; and the sale of 942 Route 13, Cortland, an
18,000 sq. ft. former hardware store to United Auto
Supply.
• CBRE|Syracuse brokered two $1 million-plus
multi-family property sales: Marty Dowd and David
Thomas were the sole brokers in EF Capital, LLC’s
$1,400,000 purchase of Old Boorne Drive, Clinton,
which consists of four, two-story buildings with a total
of 48 units. Robert Nelson exclusively brokered Jefferson
Heights, LLC’s $1,332,500 purchase of 422 College
Heights, Watertown, which consists of two, three-story
buildings with 30 garden/low-rise apartments.
Part of the CBRE affiliate network
© 2012 CB Richard Ellis/Syracuse, N.Y., LLC

Syracuse, NY Office & Industrial
Vacancy Report - Office
Market
Number of
Buildings
Total Sq. Ft.
Available
Sq. Ft.
Average Quoted
Lease Rate
Per Sq. Ft.
Vacancy Rate
Downtown Class A 33 3,635,603 550,732 $17.15 15.1%
Downtown Class B 67 4,288,450 930,460 $13.77 21.7%
Downtown Total 100 7,924,053 1,481,192 $15.21 18.7%
Suburban Class A 39 2,946,014 417,378 $18.21 14.2%
Suburban Class B 42 2,298,063 285,825 $15.21 12.4%
Suburban Total 81 5,244,077 703,203 $16.87 13.4%
Syracuse 181 13,168,130 2,184,395 $15.95 16.6%
Vacancy Report - Industrial
Market
Number of
Buildings
Total Sq. Ft.
Available
Sq. Ft.
Average Quoted
Lease Rate Per
Sq. Ft. (NNN)
Vacancy Rate
Syracuse 101 20,642,393 2,904,529 $3.98 14.1%
Non-Residential Construction
Contract Totals
Contracts For Future Construction (in Millions)
$700
$600
$500
$400
$300
$200
$100
$0
$617.0
$521.8
$466.0
$379.9
$414.5
2007 2008 2009 2010 2011
Year
Non-residential construction contract spending has been on the
rise since 2009 in the Syracuse Metropolitan Statistical Area,
which includes Onondaga, Madison and Oswego counties. With
a 2011 year-end total of $521.8 million in contract spending,
new building construction is making a rebound. If the increase
continues, contract spending in 2012 may again see levels like
the $617 million spent in 2007.
From January to March 2012, contract spending reached over
$100 million, which is a 10% increase over the $91.2 + million
spent for the same period in 2011.
Non-residential buildings include commercial, manufacturing,
educational, religious, administrative, recreational, hotel,
dormitory and other buildings.
Statistics Source: The McGraw-Hill Companies Inc.
Summer 2012
Part of the CBRE affiliate network
© 2012 CB Richard Ellis/Syracuse, N.Y., LLC

Change in Office Vacancy Rates
Downtown
Percentage of Vacancy
Percentage of Vacancy
30%
25%
20%
15%
10%
5%
0%
16%
14%
12%
10%
8%
6%
4%
2%
0%
20.8% 21.1%
8.5% 8.2%
9.4%
12.6%
26.5%
15.1%
Quarter/Year
2Q 09 2Q 10 2Q 11 2Q 12
8.9%
21.7%
© 2012 CB Richard Ellis/Syracuse, N.Y., LLC Part of the CBRE affiliate network
9.9%
14.2%
12.1% 12.2% 12.3% 12.4%
Quarter/Year
2Q 09 2Q 10 2Q 11 2Q 12
Class A
Class B
The vacancy rate for Downtown Class A has been increasing since 2010. The increase from 2011 to 2012 can be
attributed to spaces being vacated from several different buildings, ranging from 1,000 to 19,000 SF. Downtown
Class B space was increasing from 2009 to 2011, but finally tapered off this period since a few larger spaces in the
market were leased, up to 45,860 SF.
Suburban
Class A
Class B
Over the past four years, there has only been a difference of a few percentage points in Suburban Class B vacancy. The
Suburban A market has been more drastic, climbing slowly but steadily since 2010. This year’s increase can mostly
be attributed to a large amount of space becoming available at the Telergy building on Route 298 in East Syracuse.
Multi-Housing (Apartment)
Spotlight
by Marty Dowd, Senior Broker
While most sectors of commercial
real estate are slowly recovering,
multi-housing has been sprinting.
Occupancies for professionally
managed properties nationally are
approaching 95%. In 2011, rental
increases ranged from 3% to 12% or
more. There is an abundance of both
equity and debt capital available.
Investors are willing to invest in
development deals in cities such
as Boston and New York at a 5.5%
return on development costs based
on today’s rents. This is primarily
because they don’t want to buy
based on 4-5% cap rates for existing
product; and view the long-term
prospects for multi-housing to
be strong. Here in the Syracuse
marketplace, cap rates exceed most
nearby markets, thus attracting extra
attention from investors. Indicators
are pointing to local prices moving
toward higher valuations.
It is important to recognize the
differential in the primary markets
from our local market is not a
function of their superior real estate
fundamentals and investment
performance, but rather perceived
advantages associated with liquidity
or supply constraints. Some primary
markets do have higher occupancy
and rent growth or are expected
to show it going forward while
some have also surpassed their
pre-downturn revenue levels and
are well ahead of the Nation in this
cycle. That said, large markets do
not always outperform markets such
as Syracuse, and when they do,
it is usually by a relatively narrow
margin.
In 2011 CBRE and its Multi-Housing
Group sold $8.6 billion in multihousing.
This represents a 20%
market share, which was more than
double of our nearest competitor.
Within the past six years, the
Syracuse office has brokered the sale
of over 7,000 Multi-Housing units
in Upstate New York, allowing us to
dominate the local market as well!
Confidence has been raised by lower
interest rates, along with strong
occupancies, a lack of new supply,
expected rent growth, favorable
demographics, and a continued
decline in home ownership.
Should you be interested in
purchasing or selling multi-housing
assets, please contact CBRE|Syracuse
at (315) 422-4200.
Syracuse, NY Office & Industrial Summer 2012

Recent Transactions
Industrial
Address:
1200 State Fair Blvd.
Syracuse
Size (SF):
103,267
Sold/Leased:
Leased
Buyer/Tenant:
Distribution Centers
of America
Office
Address:
6600 Weighlock Drive
East Syracuse
Size (SF):
46,626
Sold/Leased:
Leased
Buyer/Tenant:
Aspen Dental Management
Syracuse, NY Office & Industrial
Address:
1291 Faichney Drive
Watertown
Size (SF):
72,315
Sold/Leased:
Sold $1,000,000
Buyer/Tenant:
Guilfoyle Ambulance
Services
Address:
2200 E. Genesee St.
Syracuse
Size (SF):
11,000
Sold/Leased:
Sold $650,000
Buyer/Tenant:
Daniel L. Carr, MD
Address:
1 Needle Lane
North Syracuse
Size (SF):
83,000
Sold/Leased:
Sold $950,000
Buyer/Tenant:
Empower FCU
Address:
2112 Erie Blvd. East
Syracuse
Size (SF):
20,000
Sold/Leased:
Sold $540,000
Buyer/Tenant:
James Dewitt Corp.
Summer 2012
Map of CBRE New York Offices: Syracuse, Buffalo, Rochester, Albany & NYC
Definition of Terms
Used in MarketView
Market Coverage
Office: Includes multi-tenant, single-tenant and medical
office buildings 20,000 sq. ft. and greater in size.
Industrial: Includes single-story commercial/industrial
buildings 10,000 sq. ft. and greater in size.
Full Gross Lease
Leases that include base rent plus all additional charges,
including utilities.
Net Absorption
The change in occupied square feet from one period to
the next.
Occupied Square Feet
Building area not considered vacant.
Vacant Square Feet
Building area which is either physically vacant or
immediately available.
Vacancy Rate
Available inventory divided by total market inventory.
Triple-Net Lease (NNN)
A lease in which the tenant is to pay all operating
expenses of the property, such as taxes, insurance and
utilities.
Class A
Excellent location, high-quality tenants and finish,
professionally managed, well maintained, usually new
or competitive with new buildings.
Class B
Good location, professionally managed, fairly high quality
construction and tenancy, showing little or no functional
obsolescence or deterioration.
CBRE|Syracuse Office Location:
Nettleton Commons
313 E. Willow St., Ste. 202
Syracuse, NY 13203
T: 315.422.4200 F: 315.422.7533
www.cbre.com/syracuse
CBRE|Syracuse Staff:
MANAGEMENT:
Michael Finn, CCIM,
Managing Partner
Peter Finn,
Executive Vice President
ADMINISTRATIVE:
Lisa Crabtree,
Office Manager
Deborah West,
Marketing Director
AGENTS:
Bill Anninos
Tom Christian
Marty Dowd
Lisa Finn
Donald R. French
Ed Kiesa, CCIM
Robert Nelson
Mark J. Rupprecht, CCIM
Rick Searles
David Thomas
Larry Van Der Bogart
The Syracuse office covers the cities of Syracuse, Watertown,
Utica, Binghamton, and the areas in between.
To receive the MarketView by e-mail,
call Deborah West at (315) 422-4200
or e-mail deb.west@cbre.com
Part of the CBRE affiliate network
© Copyright 2012 CBRE Statistics contained herein may represent a different data set than that used to generate National Vacancy and Availability Index statistics published by CBRE Corporate Communications or CBRE’s research and
econometric forecasting unit, CBRE Econometric Advisors. Information herein has been obtained from sources believed reliable. While we do not doubt its accuracy, we have not verified it and make no guarantee, warranty or representation
about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the market.
This information is designed exclusively for use by CBRE clients, and cannot be reproduced without prior written permission of CBRE.