A new report from Cassidy Turley, expected to be released in full on January 13, examines the U.S. vacancy rates through the fourth quarter of 2013 and the early news is promising. According to the company, vacancy rates continued to decline in most metropolitan statistical areas in Q4, with rents rising in over half of the country. Further, the report reveals that vacancy is now 220 basis points lower than its recessionary-peak of 17.3%.
"Office vacancy is clearly tightening, but at a rate that is much slower than past recoveries," said Kevin Thorpe, Chief Economist at Cassidy Turley. "Steady job growth and lack of new development has vacancy falling in 70% of the country, but the office sector is still adjusting to the new era of tenant downsizing and space efficiency. Rent growth is still being powered by energy-driven and tech-driven markets, but the rent recovery is clearly beginning to roll into more pockets of the country. Supply/demand fundamentals suggest the majority of the country will be pushing office rents upward by this same time next year."
The top 10 U.S. markets in terms of 2013 rent growth were:
San Francisco, with 11.8% rent growth;
New York, at 9.5%;
Denver, with 7.8%;
San Jose/Silicon Valley, with 7.3%;
Austin, with 7.0%;
Dallas, with 5.6%;
Salt Lake City, with 5.5%;
San Mateo County, at 4.9%;
Oakland-East Bay at 4.4%; and
San Diego, with 4.3% rent growth
For more news and information visit Blumberg Capital Partners.
No comments:
Post a Comment