US Office Rebounds, Vacancies Drop
AUGUST 11, 2016 | BY PAUL BUBNY | GlobeSt.com
Reports from Avison Young and Lee & Associates note that a handful of the largest office markets account for the lion’s share of new construction.
After a sluggish first quarter, the US office market saw a return to form in Q2, according to reports from Lee & Associates and Avison Young. The two firms reported declines in vacancy nationwide during Q2, increases in absorption and upward trends in asking rents.
Employing different yardsticks, Lee reported a 20-basis point decline in vacancy from Q1, with the office market nationwide finishing Q2 at 10.1%. AY’s report describes a 40-bp decline on a year-over-year basis to 12.7%.
That’s an average, of course; AY cites rates in individual markets that came in considerably lower during the quarter. “The cluster of Northern California downtown markets—San Francisco, Oakland and San Mateo—reported extremely low vacancies of 5.5%, 3.9% and 1.7%, respectively,” according to AY. And in New York City, the nation’s largest downtown market with 443 million square feet, vacancy improved by 40 bps falling to single digits (9.6% vacant).”
Our firm has been using Blue Vault from the first year it was available.
We have found it to be a valuable tool to verify what wholesalers tell us and to dig deep into how the reported investments are really performing.
We appreciate that Blue Vault has expanded its services from initially covering REIT's to now also including BDC's.
Our clients also appreciate that we conduct this additional due diligence on their behalf.