As revealed in our Q4 2012 Office Industry Trends analysis, office tenants reached new heights of satisfaction in 2012. The trend, though, is not limited to a single property type. Indeed, it has been happening across the entire commercial real estate industry, encompassing industrial, retail and medical office properties as well as traditional office buildings.
The chart below shows the four-year trend for overall satisfaction for the four property types tracked by Kingsley Associates. Though the trend patterns differ somewhat, tenant responses were more positive in 2012 than in any of the previous three years. And in fact, the same holds true for several other metrics, including satisfaction with property management, value for amount paid and renewal intent.
When it comes to tenant expectations of future space needs, however, there are some differences across property types. The percentage of retail and medical office tenants anticipating more space has remained fairly stable since 2009. And while more office tenants are expecting to grow than in 2009 or 2010, the proportion is virtually unchanged from 2011. On the other hand, the expectations of industrial tenants have moved up and down a great deal. As of the end of 2012, nearly 20% of industrial tenants are anticipating more space, by far the highest among the four property types.
For a more detailed look at these trends, check out our Q4 2012 Commercial Property Trends.