Written by Randy Drummer CoStar Group May 1, 2013
The slow but steady progress in the recovery of the U.S. economy continued to present somewhat of a conundrum for the U.S. office market in the first quarter. On the one hand, despite moving in fits and starts, the recovery has helped stablize the office market and support relatively high property valuations. On the other, the modest job growth seen to date has yet to translate into meaningful demand for office space, so office rents have remained at ‘discount’ levels.
While average office employment is growing at a rate of a little over 2%, demand for space is growing at just half that rate. That apparent disparity between office job growth and actual demand for office space was perhaps the most telling indicator of the office market’s performance in the first quarter of this year, according to CoStar Group’s First-Quarter 2013 Office Review and Outlook.
In a striking example, Dallas/Fort Worth, a major office market is increasing jobs at a rate of almost 4%, while use of space is growing by only 1.4%…
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Kathryn G. Juneau joined Saurage Rotenberg Commercial Real Estate in 2011. Kathryn is a memeber of the Louisiana Commercial Database (LACDB) and Loopnet.com. Kathryn is also a memeber of the Junior League of Baton Rouge.
Saurage Rotenberg Commercial Real Estate is a member of the Baton Rouge Area Chamber of Commerce (BRAC); the West Baton Rouge Chamber of Commerce; the Baton Rouge Growth Coalition; the Baton Rouge Better Business Bureau; the Louisiana Commercial Data Base (LACDB); and the International Council of Shopping Centers (ICSC). Several agents, on an individual basis, are members of the Society of Industrial and Office Realtors® (SIOR), the Certified Commercial Investment Member Institute (CCIM); the National Association of REALTORS® (NAR); and the Greater Baton Rouge Association of REALTORS® Commercial Investment Division (CID).