Office market forecast indicates strong recovery possible again in 2012

After the national office real estate market recovered considerably last year from 2010's performance, a continued rejuvenation in the sector is projected for this year, a report by Jones Lang LaSalle states.

After the national office real estate market recovered considerably last year from 2010's performance, a continued rejuvenation in the sector is projected for this year, a report by Jones Lang LaSalle states.

According to the firm's report, 10.3 million square feet of office space was absorbed during the final three months of 2011 - the seventh straight quarter of gains. Last year, the total amount of space absorbed reached 34.6 million square feet.

Officials with the firm said they expect real estate data to show continual growth this year, which should bode well for the industry.

"We expect a continuation of slow, methodical growth in 2012 with the November elections being a possible inflection point in the continued recovery," said John Sikaitis, director of office research, Jones Lang LaSalle.

He added that vacant office space will likely diminish further, particularly in high-tech and energy-rich markets, which in turn should increase rent growth substantially.

Though many markets nationwide are expected to perform better in 2012 than during 2011, the two biggest office real estate markets in the U.S. - New York and Washington, D.C. - are forecast to remain sluggish this year amid economic strife internationally.

Another recent office real estate report by Green Street Advisors shows many major cities nearly reached peak price levels in the second half of last year.



blog comments powered by Disqus