NEW YORK CITY—For all the steady improvement that the US office sector has seen in the past few years, it finished the fourth quarter of 2016 with a vacancy rate of 12.3%. That's just 10 basis points above the low of 12.2% seen in 2007, according to Colliers International's new Office Market Outlook report.
“While class A rents in most markets are holding firm or growing at a reduced pace, tenant incentive packages are increasing in some locations where vacant new supply is being added or occupiers are moving out,” writes Stephen Newbold, national director of office research | USA and author of the report. He tells GlobeSt.com that “on a national basis, I think vacancy has pretty much plateaued,” and he sees little change, at least in the current year.
That being said, the office story has been one of steady improvement. The Colliers report notes that almost 75% of the metro office markets tracked by the firm saw an increase in asking rents and a decline in vacancies last year. Just over 60% experienced positive net absorption.
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Paul Bubny
Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.
