The US office market has been on an upward curve since the economy began the slow recovery from recession.
November’s employment figures were much better than expected with 203,000 jobs created nationwide.
In October 200,000 jobs were added, which meant that the jobless rate fell by 7 per cent.
Unemployment now stands at a five-year low leading investors to believe that the office market may prove lucrative this year.
CRE researcher Reis reports that vacancies decreased by a total of 10 basis points during Q3 to hit 16.9 per cent.
When taken on a year-on-year basis, the vacancy rate declined by 30 basis points, which is in line with last quarter’s year-on-year decline.
In addition rents are continuing to increase. During the same three-month period, asking and effective rents went up by 0.3 per cent making it the third consecutive quarter of rental growth.
With unemployment falling, the office sector could see further rental increases as the number of empty workplaces declines.
Analysts are now predicting that the trend will continue throughout the year as the market benefits from the improving economy.
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