It’s important for brokers, buyers, sellers and tenants to stay updated on current commercial real estate trends. Reis reports are valuable for those who wish to keep up with the various sectors of the commercial real estate industry. Victor Calanog, PhD is the Chief Economist and Senior Vice President of Reis. In his second quarter market report, he discusses the latest trends of the CRE office sector. Our friends at SVN SouthLand Commercial published an article with the full report in a recent blog post. We encourage you to read the excerpt below, then click the button at the bottom to view the full article and report.
Reis Report: CRE Office Activity
The office sector of commercial real estate is extremely prominent in the industry. The property data company Reis provides valuable commercial real estate data. Their market intelligence includes reports and trends of eight commercial real estate sectors. These segments include flex/research and development, apartment, office, retail and others. In this 2016 second quarter report, Victor Calanog, PhD, discusses progress, growth rates and other market highlights for the CRE office sector. Calanog is the Chief Economist and Senior Vice President of Reis and published this report on July 15, 2016. Read on for report highlights and click the image at the bottom to view the full report.
CRE Office Progress
According to the Reis report, the vacancy rate for the United States has declined 10 basis points. This ends the second quarter at 16.0% vacancy for the CRE office sector. Moreover, absorption rates for this sector of CRE have reduced to 6.9 million SF. This is the weakest it has been since the 2015 first quarter, according to Reis. New office space came on the market quickly and has now slowed back down. This is positive when taking the U.S. job economy into consideration.
Office space rents have increased for the past five years. In 2015, annual asking rent grew to surpass 3.0%. Asking and effective rent growths have now started to slow down slightly. Although, this slowness in growth is most likely temporary…