May 03, 2017 - 0 Comments - Office Property -

Video: REIS Chief Economist & SVP Victor Calanog Provides an Update on Q1 2017 Office Market Trends

In this video, REIS Chief Economist and Senior Vice President Victor Calanog provides a quick update on first quarter 2017 Office property market fundamentals and trends.  Highlights include:

  • It was a relatively uneventful quarter for the office property market
  • National office vacancy rates ended the quarter at 15.8%, unchanged versus the prior quarter
  • Office property vacancy is down 20 basis points from 16.0% a year prior
  • Asking rents increased by 0.5% in the quarter, while effective rent increased by 0.4%
  • In the trailing 12 months, rent growth was 1.8%, while effective rent growth was 1.9%
  • Results reflect slow down in economy and slowing of hiring relative to 2014 and 2015
  • Average job creation numbers running less than 180,000 per month year to date are not enough to trigger a lot of office leasing, particularly given remaining overhang of sublease space
  • In this environment, little “greenfield” office development is taking place