IRVINE, CA—Certain office markets have not been able to generate the job growth and leasing to work off the high vacancies left by the Great Recession, and other markets that enjoyed stronger fundamentals are now contending with increased supply, Ten-X's chief economist Peter Muoio tells GlobeSt.com.
According to a report from the firm, the office segment saw 0.6% growth in January, making it the only segment to post an increase for the month. However, this growth only partially reversed the sharp 0.8% decline from December, and pricing in the office segment remains flat. Searches related to office demand fundamentals were a primary driver for this month's increase, which correlates with the broader strength in economic indicators, and the regional picture remains mixed, with large gains in the Southwest and Northeast offsetting declines in the other three regions.
We spoke with Muoio about his expectations for office pricing in the coming year and the potential drivers and headwinds for this sector.
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Carrie Rossenfeld
Carrie Rossenfeld is a reporter for the San Diego and Orange County markets on GlobeSt.com and a contributor to Real Estate Forum. She was a trade-magazine and newsletter editor in New York City before moving to Southern California to become a freelance writer and editor for magazines, books and websites. Rossenfeld has written extensively on topics including commercial real estate, running a medical practice, intellectual-property licensing and giftware. She has edited books about profiting from real estate and has ghostwritten a book about starting a home-based business.
