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Slowdown Hasn't Dampened Worldwide Office Demand

BOSTON-Colliers International, based here, says that despite the continuing volatility on Wall Street and the fears of a weakening US economy, the demand for commercial office space in major cities around the world remains strong.

By John Jordan | Updated on March 22, 2001

BOSTON-The continuing sell-off on Wall Street and fears that the US economy may be heading towards recession has not had a significant impact, as yet, on the demand for commercial office space around the world. Ross Moore, vice president and director of research for Colliers International, based here, says that a tremendous amount of pent-up demand has pushed office vacancy levels lower and rental rates higher in most financial centers worldwide.

“The real estate market is better prepared for an economic downturn than nearly any other industry,” Moore says. “The hard lessons learned during the last real estate downturn in the early 1990s have been remembered during this upswing in the real estate cycle. Most markets have not become overbuilt and any lessening of demand will not significantly affect major office markets.”

However, Moore is quick to point out that if the financial markets continue to weaken in coming months, then the commercial real estate market will begin to soften. He credits the strong performance of the office market to very high demand. However, if Wall Street continues its volatile performance, there will be a change in the supply and demand equation.

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