AGA office studies utilize a multitude of market research applications including employment-driven modeling techniques, broker data, and field data collection to determine the office development potential for a given site. AGA office studies are also used to provide insight regarding future vacancy and lease rates, and as a tool to identify office markets with above-average investment or development opportunities.

AGA Office Model
Our office model evaluates long-term demand and supply conditions impacting a region's office market and includes a projection of regional office demand over future years. Office demand is calculated on the basis of increased employment in categories of economic activity typically associated with demand for office space. Employment gains (losses) are converted into increased (decreased) office space requirements utilizing space coefficients specific to several categories of office-related employment. A share of regional demand is assigned to the site area (and specific project) on the basis of location, competition, access, etc. Office supply is evaluated on the basis of office building permit activity throughout the region including the submarkets surrounding the subject site.

The quantified estimate of supply is then compared to the demand projection to determine trends in office vacancy rate, office absorption potential in the site area, anticipated tenant profile, etc. The model's ability to ascertain space requirements of local tenants serves as a valuable tool to assist developers in the design of new office buildings - floor plate sizes, etc.

Our office model relies on econometric methodologies updated and refined over the past 30 years and applied to office markets throughout the United States and Canada.

Survey Data
AGA can supplement the statistically-based analysis of office market potential with a survey of site area office buildings. Survey data includes information pertaining to lease rates, tenant improvement practices, vacancy rates, absorption rates, tenant mix, building classification, building amenities, etc. We can also collect information regarding projects under construction and planned for future development.

The combination of our econometric model and local survey data assists our clients in understanding local development/investment opportunities and our recommended approach to capitalize on these opportunities.

Clients who utilize our services to assist them in the development or purchase of office properties include The Irvine Company, Catellus Development Corp., CT Realty Corp., Birtcher, Mission Viejo Company, etc.

 

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