The report shows that overall vacancy in the U.S. office markets has fallen 0.7 percent in the past twelve months, ending the second quarter at 16.4%.
San Francisco, CA (PRWEB) November 06, 2012
A recent report from real estate services firm Cushman Wakefield on the U.S. Office Market forecasts positive development for the rest of 2012, after a good showing in the first half of the year. An expanding economy supported the trend, with gross domestic product up 1.5% and that pushed employment up 1.3% from the previous year. Although the economy is slowing in the second half, the Office Market is expected to hold up well.
According to the report, build-to-suit construction may increase in the near term as large blocks of quality space become even harder to find in select cities. Speculative construction, however, should be limited to select markets due to ongoing capital constraints and rental rate appreciation that is unlikely to support costs of new development for at least six to eight quarters in most markets.
The report shows that overall vacancy in the U.S. office markets has fallen 0.7 percent in the past twelve months, ending the second quarter at 16.4%. Almost three quarter of cities surveyed reported vacancy declines, ranging from 4.0 percent in Contra Costa (to 15.6%) to as little as 0.2% in Palm Beach (to 20%).
The weighted average of overall asking rents has increased for four consecutive quarters and was up 2.7% over the same period of the previous year at $28.12 per square foot. The gain was greater than the 2.2% for the previous quarter, due to fewer, lower-priced subleases beings marketed in higher-end properties. San Francisco, the San Francisco area, and Midtown Manhattan were the biggest gainers.
The report shows that leasing activity declined 9% on a year-to-date basis from the same period in the previous year. There was a marked drop in the signing of class A transactions from the very strong levels seen last year, in part due to the lack of available space, but demand for class B and class C space was higher.
About the Off Market Association
The Off Market Association The Off Market Association (OMA) brings together experienced commercial real estate experts, bankers, finance experts, consultants, attorneys, accountants and others from the financial services sector. The two main affiliates are Sunovis Financial and Genesis Capital.
It offers a fresh and exciting concept to its members — a new way to get deals done.