Mar 09, 2016 |Diana Bell | National REIT Investor
Investors should keep the office sector on their radars, as metrics from a number of research and investment firms point to a strong performance in the years ahead.
Vacancy will decrease nationally just as new office development will begin to accelerate—but new development will not stem dropping vacancy rates. The National Association of Realtors (NAR) predicts office vacancies will continue dropping through 2016 and 2017, from 13.4 percent in the fourth quarter of 2016 to 12.7 percent by 2017.
There has been a 5.0 percent increase in office property values over the past 12 months, reports Green Street Advisors, a Newport Beach, Calif.-based research firm. The firm predicts NOI growth in the sector of 4.3 percent from 2016 through 2020.
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