HOUSTON—A recent office analysis shows a strikingly vulnerable national office sector with vacancies that have remained essentially unmoved in the past two years and rent growth slowing to its weakest pace in five years. These were the findings from data cruncher Ten-X Commercial in its latest US office market outlook, including the top five sell markets for office properties.
Markets that recovered this cycle are struggling with increased supply while left-behind markets that saw limited improvement, remain weak. While 26 different regional markets had four-year projections downgraded by Ten-X in this most recent analysis, there were no markets in which the four-year prospects improved, highlighting the widespread nature of the sector's vulnerability.
Houston, San Francisco, Memphis, Baltimore and Suburban Maryland are the top markets where conditions might cause investors to consider selling office properties. These markets have either recorded tepid office job growth this cycle contributing to high vacancy rates, or had strong economic recoveries leading to more new office supply than the market can digest.
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Lisa Brown
Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.
