Commercial Office Sector Still Stagnant on National Level

According to a recent article published by National Real Estate Investor (NREIOnline.com), the commercial office sector on a National level has hardly budged since the recession hit. National vacancy rates are hovering right around 16.9% and are 440 basis points above the cyclical low in Q3 of 2007. This stagnant growth in commercial office on a National level is reported to be due to employment growth being concentrated in sectors that do not require office space. With more companies now offering to let employees work remotely in order to save precious dollars towards their bottom lines, many former booming U.S. metros will continue to show a slow recovery in the office sector.

However, in some U.S. metros and submarkets, commercial office vacancy rates are low due to increasing demand by technology and healthcare companies that utilize office space. The U.S. Cities with the highest growth in commercial office include, San Jose, San Francisco, Seattle, and Dallas to name a few.

Read the entire article on NREIOnline.com here: http://nreionline.com/office/office-market-remains-stuck-rut

Posted by Corey Curwick Dutton