US Office Rebounds, Vacancies Drop

August 12, 2016



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).”

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Second Annual Blue Vault Broker Dealer Educational Summit 2016
Broker Dealer Educational Summit 2016
April 14, 2016

The Blue Vault Summit could not have been more perfectly timed. This gathering of the Broker Dealer and Sponsor communities provided insightful and open discussion from several vantage points. These conversations are paramount, especially in a time of significant regulatory change.