In this video, Reis Chief Economist and Senior Vice President Victor Canalog, PhD, provides an analysis of office property market fundamentals for the fourth quarter and year of 2016. Some highlights from this video include:
- Vacancies fell by 20 basis points to 15.3%
- Year over year vacancies fell by 40 bp
- Vacancy decline is somewhat disappointing in that drop was less than anticipated, but is not bad when considered as during a maturing business environment with less job growth
- Seeing a slowdown in improvement trends in office fundamentals
- Asking and Effective rent rose .3% and .4%, respectively, in the fourth quarter of 2016
- Year over year asking and effective rents rose slightly over 2%
- In 2017 question is wheter new admin will truly usher in stronger economic growth
- Also in 2017, question is wehter promised 1 trillion in infrastructure spending will benefit office market
- Projecting relatively steady year for office property fundamentals in 2017 with some upside potential