OFFICE METRICS SHOW MODEST IMPROVEMENTS

Transcription

1 OFFICE MARKET REPORT: 1Q OFFICE METRICS SHOW MODEST IMPROVEMENTS Prepared by: Galen M. Raza-Self Real Estate Market Research PNC Real Estate 249 Fifth Avenue Pittsburgh, PA (412) ECONOMY: This quarter, the economy contracted at an annualized rate of 0.7%, down appreciably from 4Q14 s 2.2% expansion. Total job growth slowed from 4Q14 s average of 324,300/month to 184,000/month during 1Q15, while the unemployment rate eased 10 bps to 5.5%. Commensurate with lower overall job growth, office-using employment slowed from 4Q14 s average of 86,700/month to 50,700/month. PNC Economics Group forecasts GDP expanding approximately 2.8% in, with 2.1% job growth and an unemployment rate of 5.1% by year-end. ABSORPTION: For the fifth consecutive year, first quarter leasing activity fell from the prior quarter, with 1Q15 totaling about 10.6 msf versus a cyclical high of 31.3 msf in 4Q14. Class A space continued to account for the majority of space demand, at just under 61.0%. Brokerage firms reported that demand remained broad-based, but softer than in the prior quarter. Technology tenants continued to dominate leasing activity in established hubs, as well as emerging ones, while banking/finance and professional business service tenant demand strengthened. Among the major office markets, Dallas/Ft Worth led the way with 2.0 msf of net absorption, followed by Houston with 1.7 msf, while New York City, Washington, DC, Chicago, Los Angeles, and Philadelphia recorded varying levels of negative net absorption this quarter. SUPPLY: Completions remained fairly steady at 16.5 msf, while the level of office space under construction eased 1.7 msf from last quarter to msf and pre-leasing softened from 4Q14 s 63.5% to 62.2%. Speculative construction continued to be focused in a handful of markets (Austin, Denver, Nashville, Salt Lake City, and San Diego). VACANCY: The national office vacancy rate declined approximately 10 bps sequentially, while the Class A vacancy rate rose 10 bps to 12.7%. The average vacancy rate for the nation s 10 largest office markets backed-up 21 bps from the prior quarter to 12.1%, with performance varying widely by market. Atlanta, Boston, and Philadelphia experienced quarterly improvements, while Houston and Washington, DC confronted higher levels of vacant space. RENTS: Nationally, office rents moved higher this quarter, but at a slower pace. Sequentially, Class B rents grew the fastest, increasing 0.6% ($0.13/sf) to $20.39/sf, while Class A and C advanced 0.2% to $28.75/sf and $16.59/sf, respectively. Among the nation s largest office markets, Houston s overall rent gained 0.8% from last quarter, as oil prices firmed about 12.0% during the quarter. Compared to 1Q14, Class A rents in Dallas/Ft Worth and Atlanta are up 5.8% and 6.9%, respectively, while Washington, DC, Chicago, and Boston are lower. TRANSACTION ACTIVITY: While office sales experienced a 5.6% sequential decline to $32.6 billion, they are up 47.2% annually. Powered by a 6.1% gain in major market CBD prices, overall pricing grew 4.1% from 4Q14. CBD cap rates moved about 10 bps lower to 5.9%, while Suburban cap rates declined about 4 bps to moved lower to roughly 6.7%. PNC is a registered service mark of The PNC Financial Services Group, Inc. This document is for general informational purposes only and is not intended as specific advice or recommendations. The information contained herein is gathered from public sources believed by PNC to be accurate and reliable at time of publication, but neither PNC nor any of its affiliates is providing any guaranty or warranty as to the accuracy, completeness or reliability of that information or of the conclusions presented in this document. In addition, markets do change. Opinions expressed herein are subject to change without notice. The information set forth herein does not constitute legal, tax or accounting advice. You should obtain such advice from your own counsel or accountant. Any reliance upon the information provided herein is solely and exclusively at your own risk.. The PNC Financial Services Group, Inc. All rights reserved.

2 OFFICE METRICS SHOW MODEST IMPROVEMENTS 2 ECONOMY This section summarizes changes in the national economy and discusses employment trends that influence office space demand. GDP The BEA s second estimate indicated that GDP contracted at an annualized rate of 0.7%, down appreciably from 4Q14 s 2.2% growth. Declines in exports, nonresidential fixed investment, and state/local government spending, along with higher levels of imports were partly offset by increases in personal consumption expenditures, private inventory investment, and residential fixed investment. Of particular interest to commercial real estate players was that the decrease in nonresidential fixed investment was driven by a large drop in nonresidential structures, which shaved 0.67 percentage points from 1Q15 GDP, compared to 4Q14 s 0.17 percentage point gain. PNC s Chief Economist, Stuart Hoffman expects that the economy will rebound in the second quarter with growth of at least 3.0%. (000s) , (L) Total Monthly Nonfarm Jobs: 85,000 (Mar - ) (L) Monthly Office Jobs : 42,000 (Mar - ) (R) Unemployment Rate: 5.5% (Mar - ) EMPLOYMENT 12% 10% 8% 6% 4% 2% 0% Source: Moody's Analytics; PNC Real Estate Market Research EMPLOYMENT Total employment continued to move higher, ending 1Q15 at million, while the unemployment rate fell 10 bps sequentially to 5.5%. Job growth (the primary determinant of office demand); however, was fairly weak, totaling just 552,000 (184,000/month) compared to 973,000 (324,000/month) in 4Q14. During the quarter, the labor participation rate remained unchanged from 4Q14 at 62.7%, while the employment-to-population rate increased 10 bps sequentially to 59.3%. Looking ahead, PNC s economists expect job growth to average 2.1% (230,000/month) and an unemployment rate of 5.1% by year-end. Nationally, office-using employment slowed from 4Q14 s 260,000 jobs (86,700/month) to 152,000 jobs (50,700/month) during 1Q15 and represented 27.5% of overall job growth. Professional/business services (PBS) accounted for the majority of officeusing employment with 104,000 jobs (34,700/month) and the proportion of temporary service jobs increasing slightly at the end of the quarter. During the quarter, finance job growth slowed slightly from 42,000 last quarter to 35,000, while IT increased by from 10,000 to 13,000 over the same period. During 1Q15, office-using employment among the 10 largest markets represented 18.0% of the 152,000 office jobs created nationally, nearly identical to 1Q14 s 18.4%. New York City and Los Angeles stood out, with quarterly office-using employment growing 0.9% and 0.8%, respectively. Meanwhile, Philadelphia and Houston slipped from growth to loss sequentially, while Northern New Jersey experienced its third consecutive quarter of job losses. 14,000 12,000 10,000 8,000 6,000 4,000 2, ,000-4,000-6,000-8,000 New York City 1.2 Q/Q Chg (000s) Q/Q Chg (%) Washington, DC Chicago Source: Moody's Analytics; PNC Real Estate Market Research Los Angeles Philadelphia Boston OFFICE EMPLOYMENT GROWTH 10 LARGEST MARKETS 1.0% 0.8% 0.6% 0.4% 0.2% 0.0% -0.2% -0.4% -0.6% -0.8% -1.0% N. New Jersey Dallas/Ft Worth Atlanta Houston

3 OFFICE METRICS SHOW MODEST IMPROVEMENTS 3 OFFICE MARKET TRENDS As noted in the Economy Section, office-using employment expanded at a slower rate than in the prior quarter, contributing to more modest improvements among office market fundamentals. Please refer to Table I in the Appendix for additional data on PNC s 22 Footprint Markets, which represent approximately 34% of the nation s office space and include five of the nation s largest office markets, which represent roughly 45% of PNC s Footprint Market office space. ABSORPTION After reaching a cyclical high of 31.3 msf last quarter, office leasing activity repeated its typical seasonal slowdown, starting with approximately 10.6 msf of net absorption, about 1.6 msf lower than 1Q14. Class A space continued to represent the majority of demand, accounting for just under 61.0% of this quarter s net absorption. msf Overall Net Absorption Class A Net Absorption Overall Delivery Class A Delivery OFFICE SPACE ABSORPTION Brokerage firms reported that demand remained broad-based, but softer than in the prior quarter. Among the 54 office markets that CBRE monitors, 42 had positive net absorption, with the highest levels reported in Manhattan, Dallas/Ft Worth, and Orange County. DTZ noted that 60 of the 80 markets that it tracks experienced positive net absorption during 1Q Technology tenants continued to dominate leasing activity in established hubs, as well as emerging ones. In addition, banking/finance and professional business services demand strengthened. Silicon Valley inked over 1.0 msf of leases for technology tenants including Apple (625,000 sf), Tibco Software (292,000 sf), and Blue Coat Security (107,000 sf), while Facebook (274,000 sf) expanded in Seattle and Google added (200,000 sf) in Austin. In New York, financial service firms added space with MetLife expanding (430,000 sf) to consolidate four of its New York-based locations into its namesake tower at 200 Park Avenue by mid-2017, while Fiduciary Trust (126,000 sf) relocated and OnDeck Capital (117,000 sf) expanded. Also of note is WeWork s (a rapidly expanding provider of shared office space) leasing of additional space in New York (235,000 sf) and San Francisco s Bay Area (110,000 sf). New York City Washington, DC Chicago Los Angeles Philadelphia Boston N. New Jersey Dallas/Ft Worth Atlanta Houston (1.5) (0.8) (0.6) (0.1) (0.4) (0.2) (0.4) (0.3) Q15 vs. 1Q14 YTD NET ABSORPTION 10 LARGEST MARKETS (2.0) (1.5) (1.0) (0.5) Q15 1Q Demand among the majority of the nation s 10 largest markets is lower than a year ago. Although Houston has started to react to the drop in oil prices and begun to correct itself (leasing activity is down 33% from the same period last year), its net absorption was second only to Dallas/Ft Worth. Various sources report that Houston s sublet space has increased from around 4.0 msf a few quarters ago to approximately 6.0 msf, most of it concentrated in its western submarkets along I-10, such as Katy Freeway, Westchase, Energy Corridor, and Far West, where there is a concentration of energy industry tenants. Net absorption among PNC s 22 footprint markets was measured, totaling 1.9 msf. The strongest was Atlanta (0.7 msf), while Washington, DC was the weakest (-1.5 msf).

4 OFFICE METRICS SHOW MODEST IMPROVEMENTS 4 SUPPLY The value of office projects completed during 1Q15 rose 3.7% from last quarter to $49.9 billion. The share of private office projects continued to increase, reaching $42.3 billion (84.6%). Billions $80 $70 Private Public Private Y/Y Chg (%) Public Y/Y Chg (%) OFFICE CONSTRUCTION PUT IN PLACE 80% 60% Completions during 1Q15 remained relatively steady at 16.5 msf versus 16.4 msf last quarter. Houston s 4.4 msf of deliveries represented 26.7% of this quarter s completions and were led by ExxonMobil s Campus Phase II (1.5 msf), CyrusOne s West Campus Expansion (0.6 msf), and State Farm s Campus Building C (0.4 msf). Additionally, Houston had the most Green buildings completed, with just over 1.0 msf of Leadership in Energy and Environmental Design (LEED) certified office space. Please refer to Table II in the Appendix for additional data on LEED completions. The amount of office space under construction nationwide eased slightly from last quarter s msf to approximately msf (1.1% of existing inventory). The nation s 10 largest office markets represent 53.2 msf (45.9%) of the office space under construction, while PNC s footprint markets contained 30.5 msf (26.3%). Cumulatively the 27 markets shown in the adjacent table contain msf (88.1%) of the new office space underway nationally. Houston continued to hold onto the number one spot with 15.0 msf, while Dallas/Ft Worth slipped two spots to fourth with 6.6 msf. Newcomers include Nashville, Milwaukee, San Diego, Salt Lake City, and South Florida, while completions in Long Island and Cleveland pushed them below the 1.0 msf mark. Overall, pre-leasing softened slightly from last quarter s 63.5% to 62.2%, due in part to lower levels of pre-leasing for the remaining space underway in Dallas/Ft Worth, New York City, Boston, Chicago, and Cincinnati, as well as high levels of spec space in Austin, Denver, Nashville, Salt Lake City, and San Diego. With the exception of Denver and San Diego, vacancy rates in the other markets with spec space are below the national rate. $60 $50 $40 $30 $20 $10 $ Source: Moody's Analytics; PNC Real Estate Market Research CONSTRUCTION ACTIVITY (> 1.0 MSF) Market # Bldgs U/C (msf) % of Inv. % Leased YTD Deliveries Houston % 64.9% 4.4 South Bay/San Jose % 89.3% 0.8 Seattle/Puget Sound % 45.7% 0.0 Dallas/Ft Worth % 50.8% 2.5 Washington, DC % 54.4% 0.4 San Francisco % 61.4% 0.0 New York City % 51.1% 0.0 Boston % 64.8% 0.6 Chicago % 72.9% 0.7 Phoenix % 76.6% 0.4 Minneapolis % 87.1% 0.2 Austin % 40.7% 0.6 Nashville % 16.2% 0.1 Denver % 42.4% 0.0 Philadelphia % 74.6% 0.1 Los Angeles % 29.5% 0.4 Milwaukee % 89.1% 0.0 Cincinnati % 62.3% 0.3 Atlanta % 70.1% 0.2 Pittsburgh % 64.4% 0.3 San Diego % Raleigh/Durham % 58.5% 0.4 Salt Lake City % S. Florida % 49.1% 0.1 Westchester/S. CT % 94.2% 0.1 N. New Jersey % 83.6% 0.1 Cleveland % Top % 53.8% 9.4 US TOTAL % 62.2% 16.5 Note: Bold/italicized markets are the 10 largest U.S. office markets. Due to differences in CoStar's methodology, the national figure may differ from national historical data presented elsewhere in this report. Source: Cassidy Turley; Colliers; CoStar; Cushman & Wakefield; Jones Lang LaSalle; Newmark Grubb Knight Frank; PNC Real Estate Market Research 40% 20% 0% -20% -40% -60%

5 OFFICE METRICS SHOW MODEST IMPROVEMENTS 5 VACANCY Nationally, office vacancy rates continued to improve. On average, they declined approximately 10 bps from last quarter, while CoStar s Class A vacancy rate backed-up 10 bps to 12.7%. As in the prior quarter, brokerage firms reported sequential vacancy rate declines in a majority of the markets that they follow. Among the 60 office markets that CBRE monitors, vacancy rates in 36 were lower (or unchanged) from the prior quarter, compared to 48 last quarter. DTZ reported that 47 of the 80 office markets that they monitor recorded lower vacancy rates this quarter, compared to 59 last quarter. Although the weighted average vacancy rate for the nation s 10 largest office markets increased 21 bps from last quarter to 12.1%, performance has varied widely by market. This quarter, vacancy rates are higher in Houston and Washington, DC than a year ago. Energy market turmoil is responsible for Houston s (and to some degree Dallas ) weakening vacancy rate, which increased 80 bps from last quarter to 11.6% and is now 35 bps higher than a year ago. Washington DC is up 53 bps sequentially to 15.0% and is now 63 bps higher than a year ago. While the other eight still show lower rates than a year ago, only Atlanta, Boston, and Philadelphia had sequential declines, while Northern New Jersey was unchanged. The average weighted vacancy rate for PNC s 22 footprint markets improved nominally by 3 bps sequentially to 12.3% and is down 53 bps from a year ago. This quarter s largest improvements occurred in Columbus (-74 bps), Detroit (-76 bps), and Louisville (-56 bps). Washington DC experienced the largest vacancy increase (+53 bps), due in part to negative net absorption across nearly all submarkets and the delivery of several vacant buildings in the Dulles Corridor. 18% 17% 16% 15% 14% 13% 12% 11% 10% 1Q15 vs 1Q14 VACANCY RATES 10 LARGEST MARKETS New York City 1Q15 8.1% 1Q14 8.3% Washington, DC 15.0% 14.4% Chicago 13.8% 14.3% Los Angeles 11.6% 12.1% Philadelphia 10.8% 11.2% Boston 9.1% 9.6% N. New Jersey 14.0% 14.4% Dallas/Ft Worth 14.7% 14.7% Atlanta 14.1% 14.7% Houston 11.6% 11.2% 0% 2% 4% 6% 8% 10% 12% 14% 16% CoStar Total CoStar Cl. A REIS Total CBRE OFFICE VACANCY RATES 2016 FORECAST 2017

6 OFFICE METRICS SHOW MODEST IMPROVEMENTS 6 RENTS Nationally, average office rents moved slightly higher this quarter; however, growth rates decelerated. CBRE reported that 65% of the 60 markets it tracks recorded rent growth. By Class, CoStar data indicated that the average Class B rent rose 0.6% ($0.13/sf) sequentially to $20.39/sf, while Class A and C increased 0.2% to $28.75/sf and $16.59/sf, respectively. Although Class C space only accounts for around 22.0% of the national office inventory, CoStar rent data showed that it rose 3.0% annually, ahead of Class A and B, which increased 2.1% and 2.2%, respectively. CoStar data indicated that during 1Q15, CBD rents retreated 0.3% sequentially to $28.95/sf, due primarily to Class A rent declining 0.5%. Meanwhile, suburban rents grew 0.6% sequentially to $21.34/sf, with Class A and B rents increasing 0.6%, respectively. On an annual basis, CBD rent growth of 2.4%, slightly trails suburban s 2.8%. While concerns about the impact of lower energy prices remain at the forefront of Houston s office market, its overall office rent continued to move higher, gaining 0.8% sequentially and 4.5% annually. Dallas/Ft Worth and Atlanta Class A rents showed the strongest annual growth, up 5.8% and 6.9%, respectively. Meanwhile Class A rents in Washington, DC, Chicago, and Boston remain lower than a year ago. During 1Q15, the average rent within PNC s 22 footprint markets slipped 0.1% from last quarter to $21.92/sf; however rents are 1.4% higher than a year ago. Mobile and Nashville recorded the strongest quarterly growth, up 4.9% and 4.8%, respectively. Notably, Nashville s rent is up 11.9% annually, well above the footprint s 1.4% rate. After experiencing a 3.2% gain last quarter, Pittsburgh s rent retreated 3.8% this quarter, though it is still up 3.2% annually. 4% 3% 2% 1% 0% -1% -2% CoStar Total CoStar Cl. A REIS TOTAL CBRE OFFICE RENT GROWTH (Q/Q) 2016 FORECAST National Average: 2.6% New York City Overall Cl. A 1.2% 4.5% Washington, DC 0.0% -0.9% Chicago -3.0% -0.6% Los Angeles 2.7% 2.2% Philadelphia 3.0% 2.7% Boston -4.1% -0.5% N. New Jersey 1.5% 1.0% Dallas/Ft Worth 4.7% 5.8% Atlanta 3.1% 6.9% Houston 3.5% 4.5% (6.0%) (4.0%) (2.0%) 0.0% 2.0% 4.0% 6.0% 8.0% Q15 Rent Y/Y % Change 10 Largest Office Markets

7 OFFICE METRICS SHOW MODEST IMPROVEMENTS 7 TRANSACTION ACTIVITY According to Real Capital Analytics (RCA) data, institutional quality sales volume declined 5.6% sequentially to $32.6B; however, YOY sales have increased 47.2% from 1Q14 s $22.1B. Sales of suburban properties grew 4.2% from last quarter to $17.6B and comprised the bulk of this quarter s volume. CBD properties accounted for $15.0B in sales this quarter, down 14.9% from 4Q14 s $17.7B. Despite increased competition for CBD product, one of the more notable transactions this quarter was Ivanhoe Cambridge partnering with Callahan Capital Properties to acquire Three Bryant Park for $2.2B (approximately $2,136 PSF) from Blackstone Group. In addition to this disposition, Blackstone Group sold its office portfolio in the San Francisco Peninsula and Silicon Valley for $3.5B (approximately $443 PSF) to Los Angelesbased Hudson Pacific Properties. Moody s/rca Commercial Property Price Indices (CPPI) for the office sector showed that overall prices grew 4.1% from 4Q14. Over this period, the major office CBD sub-index rose 6.1%, while the non-major suburban office sub-index showed a more subdued 0.4% increase. As of 1Q15, CBD office prices in major markets were 33.0% above their 1Q08 peak, while non-major market suburban office properties remained 19.0% below their 3Q07 peak. Billions ($) $40 CBD Office $35 Suburban Office CPPI - Total Office $30 CPPI - Major Office-CBD CPPI - Non-Major Office-Suburban $25 $20 $15 $10 $5 $- Note: Major Office Markets are Boston, Chicago, Washington DC, New York, San Francisco, and Los Angeles Sources: Real Capital Analytics, PNC Real Estate Market Research 11% 10% 9% 8% 7% 6% OFFICE CPPI & TRANSACTION VOLUME > $5 MILLION % - PwC CBD Office Index (4Q00 = 100) Capitalization Rates CBD Office 5 bps, +0.8% 5.67% - RCA CBD Office 16 bps, +2.7% 6.48% - RCA Total Office 10 bps, +1.4% Both RCA and PwC indicated that suburban and CBD office cap rates posted sequential and annual declines. RCA observed that the overall office cap rate improved 10 bps from 4Q14 to 6.5%, but has worsened 7 bps from 1Q14. RCA noted that both CBD and suburban properties have declined on a quarterly basis, with CBD properties notching a 16 bps decline to 5.7% and suburban properties posting a slight 6 bps improvement to 6.8%. Cap rate compression among suburban product is more apparent on an annual basis, as the cap rate has compressed 29 bps; however, CBD product posted a 10 bps increase, indicating that investors tapped the brakes in 1Q15. Foreign investors have been among the most aggressive buyers of US office product, a trend that is expected to continue, based on recent survey results from CBRE, Association of Foreign Investors in Real Estate (AFIRE), and PwC. Most foreign investors indicated that they plan to increase acquisition activity in the United States during, as they view it as providing greater stability and the best opportunity for appreciation. 5% 4% 11% 10% 9% 8% 7% 6% 5% 4% Sources: PwC Real Estate Investor Survey, Real Capital Analytics, American Council of Life Insurers, PNC Real Estate Market Research Sources: PwC Real Estate Investor Survey, Real Capital Analytics, American Council of Life Insurers, PNC Real Estate Market Research 5.76% - ACLI Office 12 bps, -2.1% Capitalization Rates Suburban Office 6.64% - PwC Suburban Office 2 bps, +0.3% 6.82% - RCA Suburban Office 6 bps, +0.9% 6.48% - RCA Total Office 10 bps, +1.4% 5.76% - ACLI Office 12 bps, -2.1%

8 APPENDIX TABLE I PNC FOOTPRINT MARKETS - OFFICE 1Q15 Market Existing Inventory Vacancy YTD Net Absorption YTD Deliveries U/C Rent Total RBA (msf) Direct (msf) Total (msf) 1Q15 % Q/Q bps Y/Y bps (msf) (msf) (msf) 1Q15 Q/Q % Y/Y % Atlanta % $ % 3.1% Baltimore % $ % 1.5% Birmingham % $ % 0.8% Central New Jersey % $ % 2.5% Charlotte % $ % 4.1% Chicago % $ % -0.6% Cincinnati % $ % 3.1% Cleveland % $ % -0.1% Columbus % $ % 1.8% Dayton % $ % 0.4% Detroit % $ % 3.0% Indianapolis % $ % 2.3% Louisville % $ % 1.6% Milwaukee % $ % 0.3% Mobile % $ % 3.6% Nashville % $ % 11.9% Northern New Jersey % $ % 1.2% Philadelphia % $ % 3.0% Pittsburgh % $ % 3.2% Raleigh/Durham % $ % 2.7% St. Louis % $ % 0.6% Washington, DC % $ % 0.0% PNC FOOTPRINT TOTALS / WTD AVGS 3, % $ % 1.4% US TOTALS / WTD AVGS 10, , , % $ % 2.6% Note: Due to differences in CoStar's methodology, national and Top Ten market figures may differ from those presented in this report. The top 10 national office markets are denoted in italicized bold type. Sources: CoStar; PNC Real Estate Market Research TABLE II SELECT 1Q15 LEED OFFICE DELIVERIES Property Market Submarket SF Leased LEED Certification Key Tenants Developer Alterra Pky - Domain 7 Austin North 221, % Silver n/a Shorenstein, Endeavor, Deutsche Asset & Wealth Mgmt 900 G St NW Washington, DC Downtown 113, % Gold Simpson Thacher Bartlett, American Legacy Foundation, Herman Miller MRP Realty Beltway Lakes Phase III Houston Northwest 271, % Gold (pre-certified) n/a Radler Enterprises Energy Tower IV Houston Katy Freeway 429, % Gold (seeking) Technip, Spectrum Geo, Synergen Mac Haik Development Town Centre One Houston Katy Freeway 254, % Silver Microsoft, Altus Group Moody Rambin Beltway 8 Corporate Centre (5060 Westway Park Blvd) Houston Northwest 91, % In Progress n/a Panattoni Development TOTALS/WTD AVGS - - 1,381, % Source: CBRE-EA; CoStar; US Green Building Council (USGBC); PNC Real Estate Market Research