KINGSLEY INDUSTRY TRENDS
>> Office Q4 2011
Kingsley Associates Releases Fourth Quarter Office Industry Trends
FOR IMMEDIATE RELEASE
Office Tenant Loyalty Continues to Climb
(SAN FRANCISCO–February 8, 2011) Nearly 62 percent of U.S. office tenants surveyed in 2011 intend to renew their leases, according to Kingsley Associates' Q4 2011 Office Industry Trends. During the four quarters ending December 31, 2011, 61.8 percent of tenants indicated that they "definitely" or "probably" would renew. This degree of loyalty represents an increase of 1.7 percentage points in just one year and 3.2 percentage points since the low of 58.6 percent at the end of 2009.
While renewal intent has increased, overall tenant satisfaction has retreated slightly from its high at the end of Q2 2011. As of the end of the calendar year, 85.1 percent of tenants indicated "excellent" or "good" satisfaction, compared to 85.7 percent for the four quarters ending on June 30, 2011. Still, this figure remains near its highest point since the financial crisis of 2008 and is well above the low of 83.3 percent reported at the end of Q2 2010.
"The year 2011 was a good one for office tenants," says Steve Kingsley, President, Kingsley Associates. "Both occupancy and unemployment remained fairly stable, the net result being that office users enjoyed favorable lease terms and historically strong customer service."
Tenant loyalty increased or remained stable in most major markets. Miami led the way with 68.1 percent of tenants indicating intent to renew. Atlanta registered a similarly strong figure of 65.5 percent. Still, markets such as Boston, Dallas, Los Angeles and New York were below the 60 percent benchmark. New York, in fact, experienced a consistent trend of declining renewal intent throughout 2011, ending the year with only 58.4 percent of tenants indicating intent to renew. These and other findings are available in Kingsley Associates' Q4 2011 Office Trends.
Kingsley Associates surveys office tenants representing nearly 1 billion square feet annually on behalf of its clients. The findings outlined above are based on responses received between January 1, 2011 and December 31, 2011.
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About Kingsley Associates:
The most successful firms in real estate rely on Kingsley Associates for cutting-edge business intelligence solutions. With a depth and breadth of insight unmatched in the industry, Kingsley Associates brings thought leadership and passionate client service to every engagement. Kingsley Associates is a leader in tenant satisfaction surveys, resident satisfaction surveys, client perception studies, strategic consulting and operations benchmarking. To learn more, please visit our Website www.kingsleyassociates.com or our blog www.kingsleyinsight.com.
Contact:
Peggy Robinson
Vice President of Marketing
Kingsley Associates
probinson@kingsleyassociates.com or (770) 908-1220
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