Home > Commercial Real Estate News, Market Info & Statistics > Office Sector- Vacancy drops in all 4 U.S. census regions | #cre #ccim #sior

Office Sector- Vacancy drops in all 4 U.S. census regions | #cre #ccim #sior


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Office Sector Records Best Quarter Since 2007

Posted January 11th 2013

U.S. office markets achieved

pre-recession numbers in 4Q12 as markets absorbed 20.1 million square feet of

office space, 13 msf more than the previous quarter, according to Cassidy

Turley’s preliminary 4Q12 office report. Despite the economic uncertainty caused

by the looming fiscal cliff, regions reported decreased all four U.S. census regions reported decreased vacancy.

Overall, office vacancy rates dropped 40 basis points from the

previous quarter to 15.3 percent. Average asking rents increased 1 percent year

over year to $21.70.

“There clearly was pent up demand

forming in the office sector,” said Kevin Thorpe, chief economist at Cassidy Turley. “The job numbers have

been reasonably healthy for quite some time, but the office demand data have

been largely disappointing. This report suggests the office sector is finally

falling in line with the momentum we are observing in the rest of the economy.”

Phoenix reported the highest demand

for office space in 4Q12, with more than 1.2 msf of net absorption. Boston,

Seattle, Houston, and Chicago rounded out the top five.

But Thorpe notes that national office rent

growth is being propelled by a few tech-driven markets and the New York City

market. San Francisco recorded 14.5 percent year-over-year rent growth in 4Q12, followed by New York City (10.4 percent), Salt Lake City (10.3 percent), Silicon Valley, Calif. (10.2 percent), and Columbus, Ohio (8.5 percent).

via Office Sector Records Best Quarter Since 2007 | CCIM Institute.

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