Office Market Recovering Nicely

Posted January 26, 2012

In California, Columbus, Los Angeles, Office, Ohio, Santa Monica

Randyl Drummer from CoStar News reports that office space absorption doubled in 2011. Vacancies declined in nearly 2/3rds of the markets as the office using job base has expanded. Existing tenants are looking to lock in today’s low rental rates for a longer period of time plus new users are coming into the market. Coupled with the fact new construction has been almost nonexistent over the last three years, we’ll see absorbtion of existing supply putting upward pressure on rents.

Sales increased throughout 2011 as investors are getting back in as the market recovers. A boom follows every bust and the investment community knows it’s time. Investor interest is spreading beyond the safer well leased investment grade buildings in primary markets to smaller properties in secondary markets such as Columbus, Seattle and Atlanta.

By the way, total commercial real estate sales in 2011 spread across all property types, is estimated at nearly $300 billion, which is the highest since the previous peak of the real estate boom in 2007, and well above the historical average of around $220 billion since 2000.

CoStar News – News Article – Landlords Poised to Regain Upper Hand In Recovering Office Market

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