Alden Anderson Jr., based in Providence, joined CBRE Group Inc. in 1994 and serves as senior vice president, leading the company’s New England operations. Known for his expertise in market analysis, Anderson has been primarily focused on the sales and leasing of office space, along with the sale of investment properties.
Anderson represents clients, including Bank of America Corp., Neighborhood Health Plan of Rhode Island, Blue Cross & Blue Shield of Rhode Island, and many other companies, and he oversees the sale and leasing of Providence office buildings such as One Financial Plaza, One Citizens Plaza, One Empire Plaza, the Gateway Center and The Sharpe Building at The Foundry.
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PBN: How has the office market changed in the Providence area in this past year, from what you’re seeing in the data gathered at CBRE in terms of vacancy rates and other metrics?
ANDERSON: 2022 was a year of stabilization and recovery for the Providence office market. We saw a measured return of demand with good gain in momentum as the year progressed. Vacancy rates moderated slightly with a small amount of net positive absorption. Rents have remained stable, but deal concessions remain elevated.
PBN: Has the shift to working remotely from home that we saw reported a year ago as a response to the pandemic continued to lead to a decreased use of downtown office space in the region, or has there been a return to normalcy and traditional office space utilization since then?
ANDERSON: Return to work has varied widely from industry to industry, and in some respects with the culture of a certain workplace. We do see a lot of hybrid work models that may have future impacts on office market utilization, but the real impact still remains unclear.
Throughout 2022, we saw a noticeable increase in activity at buildings downtown and on the streets. Downtown retailers noted a material increase in demand, particularly food vendors. We expect the return-to-work trend to continue in 2023.
PBN: What’s the future of downtown Providence, especially as the city moves forward with the redevelopment of the “Superman” building and the city’s plans to enhance Greater Kennedy Plaza?
ANDERSON: Downtown Providence is very fortunate to have been forward thinking decades ago when it started its transformational journey. With the development of residential and retail complementing and supporting the office market, coupled with the economic and cultural drives of our colleges and universities, downtown Providence is well positioned for the future.
With health care and life sciences being such a big growth industry today, our universities and health care institutions will play a critical role in this next stage of growth for downtown Providence.
PBN: You’ve previously spoken about Providence being among the top cities for tech talent growth. Is there potential for the development of a tech hub in the city? What do you think that would look like, given the commercial real estate options in the city?
ANDERSON: With the talent that is here today and the highly skilled and talented young people graduating from our colleges and universities each year, Providence is very well positioned for the growth industries of the future. This dynamic supports and drives the potential for innovative companies to locate, grow and thrive in the Greater Providence area.
PBN: What can you tell us about how the industrial market is looking in Greater Providence for 2023?
ANDERSON: The industrial market remains highly constrained on the supply side with continued strong demand fundamentals, which means disequilibrium. There is some relief on the horizon with several new industrial development projects underway, but pricing is at levels never seen before in this market and no sign of material softening. While we expect some supply relief in 2023, there will not be enough to move the market back to equilibrium.
Marc Larocque is a PBN contributing writer.
