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Report Reveals Positives and Negatives in National Office Market

WASHINGTON, DC-Real estate services provider Oncor International summarizes the highs and lows of the office real estate industry in its 2001Year-End North American Office Market Report. While the slow economy and newfound security fears will lead to an increase in back-office construction, industry insiders are countering any further negative effects by refusing to panic.

By Barbra Murray | Updated on January 09, 2002

WASHINGTON, DC-In its Year-End North American Office Market Report for 2001, District-based corporate real estate services provider Oncor International has concluded that the downward turn in the economy and subsequent ramifications from the terrorist attacks have hurt the office market, but not as much as it could have. The saving grace is that lenders and developers have refrained from panic and instead are approaching projects with practicality and prudence.

Newfound concerns for security and the desire to keep costs to a minimum led 58% of Oncor analysts to surmise that there will be a notable increase in back-office construction and occupancy. The report also concludes that the disparity between supply and demand continues to increase. Oncor’s numbers show the average vacancy rate in the office market for North America’s Central Business District (CDB) to be 12.57% at year’s end; an increase of 2.2% for the same period in 2000. For the most part, analysts–83% of those surveyed–expect no positive change in the vacancy numbers within the next six months.

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