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Office Market Continues Its Rebound to Pre-Recession

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Credit First Service Union According to a report by Colliers International, a commercial real estate services firm, office occupancy rates have nearly rebound to pre-2000 levels.If you would like to receive late breaking business news covered by AXcess News then you need to subscribe. By joining, you can stay ahead of the pack and receive the latest news in your email in-box first.

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Card Credit Discover Service Jan 16, 2005 (AXcess News) Boston - According to a report by Colliers International, a commercial real estate services firm, office occupancy rates have nearly rebound to pre-2000 levels.

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Credit Public Service Union Colliers estimates that today's occupancy rate of 84.5% is just 5.6 million square feet less than that recorded in 2000.

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Card Credit Processing Service Ross Moore, Vice President and Director of Research for Colliers USA attributed the growth to job gains in the fourth quarter of 2004. "2004 absorption significantly exceeded our initial bullish projections of 50 - 60 million square feet at the beginning of the year," said Moore.

Center Credit Service Union According to Colliers, most markets are forecasting demand for office space to remain healthy in the first quarter of 2005. Colliers said only a few downtown markets anticipate a slowdown early this year, and all suburban markets are expecting similar or increased demand.

Card Credit Service Wireless Strong absorption pushed the national vacancy rate down to 15.5% at the end of 2004, compared to 15.7% at the end of the third quarter 2004 and 16.5% at year end 2003. As a result of this positive trend, rents moved higher in the fourth quarter, with national averages showing a modest increase of 0.5%. However, office rents are not expected to demonstrate any meaningful increase during 2005, although tenant incentives are expected to wane.

Credit Security Service Union Another factor affecting the improved vacancy rate is that construction has slowed down somewhat. New construction totaled 44.5 million square feet in 2004, down from 59.0 million square feet completed in 2003. Another 50.3 million square feet is under construction and anticipated to be completed in the next 18 months.Advertisement

Credit Report Service Source: Colliers International

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