Office Space Still Foundering
May 1st, 2011
Although most sectors of the commercial real estate market appear to be on the upswing, office space is still foundering according to a recent report by Grubb & Ellis that showed vacancy rates up slightly from the first quarter of the year and “virtually unchanged from 12 months ago”[1]. However, people in the industry are actually feeling more optimistic, saying that the market is about to find its bottom and citing companies on the lookout for “move-up properties” with more space and amenities as a prime indicator that a recovery – albeit a slow one – is imminent.
Taylor Ing, senior vice president for CB Richard Ellis, believes that as companies move up into larger properties, they will leave behind smaller properties that are easier to fill, ultimately improving vacancy rates. This activity is, hopefully, indicative of market space movement toward recovery. “A year ago, there was very, very little activity,” he explains. “Now…a little more is a step forward.”
If the bottom is near, now could be the time to get involved at ground level in office space. Are you investing in this area, or do you think your money will do better work elsewhere?
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[1] http://www.pe.com/business/local/stories/PE_Biz_D_offices01.18094ac.html
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