New Report Points To US Office Market Recovery
News: According to a new study from US real estate services company Jones Lang LaSalle , the domestic office space market grew by 1.4% during Q313, revealing improving confidence in the sector, reports World Property Channel. It was emphasised in the report that , as economic recovery begins to gain momentum, office markets across the country are starting to see improvements, rather than just those in industry-leading regions like Silicon Valley, San Francisco and Houston. In addition, overall domestic vacancy rates in the office sector stood at 16.8% during Q313, which is the lowest level since Q109.
BMI View: Rental growth has returned to numerous office market segments in the US. Overall, rental growth has occurred in sectors dominated by technology and energy-heavy markets, as well as the top four markets of New York, Boston, Washington DC and San Francisco. In the tightest sub-markets in those cities, such as the Plaza District (New York), Back Bay (Boston), Rosslyn-Ballston and Capitol Hill (Washington, DC) and South of Market and CBD (San Francisco), rents have increased nearly 20% from cyclical lows in mid-2011. However, in the secondary commercial property areas, rental growth in general is minimal.