I found this 60 Minutes replay video very disconcerting. While it may be a little more focused on housing, there is an impact on office space in China and potentially the world economy. It looks like China may be in line for a big financial crisis. China's real estate bubble will probably cause big trouble for China Real Estate and their economy. How will it effect the world economy? Just as we think we are getting out of our slump? Will China's problems and their holding of US debt lead us into another slump. I certainly hope not. Four years has been plenty long enough.

By: James Osgood

According to the most recent quarterly report prepared by NAR:
"Major commercial real estate sectors continue to improve, albeit slowly, with gradual economic improvement and job creation driving absorption of space, according to the National Association of Realtors® quarterly commercial real estate forecast."

Key Points regarding the Office Space Sector:

National office space vacancy is expected to drop .4 percentage point during 2013.

Office rental rates are expected to increase by 2.6 percent in 2013 and 2.8 percent in 2014. That follows a 2 percent gain in 2012.
That is about $.50 / sf / yr based upon the current national average of $17.50 / sf.

Source

Find Office Space

By: James Osgood

As the United States continues its (sometimes sluggish) rise out of recession, more Americans are getting back to work, and more employers are looking for office space rentals.  Unfortunately, the previous economic downturn has meant a decrease in new construction, which means some cities, like Denver, are struggling to keep up with demand.

The outlook for the economy in Denver is good, with increased demand for office space from the energy, aerospace, engineering, health care and software sectors.  However, for the company looking for space, the news isn't all good.

While the national office vacancy rates, according to Bloomberg, are at a three-year low at 17.1 percent, the Denver market is much lower.  The fourth quarter of 2012 saw an office space vacancy rate of just 12.4 percent in the Denver area, down from 12.7 in the previous quarter.

Something else that the office space seeker in Denver will need to keep in mind is that 75% of Denver's office space is greater than 25 years old.  This means that many modern features, like green energy efficiency and modern energy requirements, may be lacking.  Those companies looking for space that isn't "obsolete" will find they have to pay more for that premium.

There is, however, some good news for the Denver market.  According to MetroDenver.org, nearly 40,000 square feet of newly constructed office space was delivered in the fourth quarter of 2012, and nearly 900,000 square feet of office space across ten buildings is currrently under construction.  Denver's dedication to attracting business, obviously, remains strong.  (Indeed, they are proud of being highlighted by PriceWaterhouseCooper on their list of top-tier cities for four years in a row, and being in the top ten national cities to watch last year.)

The other good news is that you have OfficeFinder, which will help you find the best space for your needs in tight markets like Denver.  For help in this or for any of your office finding needs, please feel free to contact us.

Find Office Space

By: James Osgood

According to a recent report from Reis, Inc, the office space vacancy rate is down only 50 basis points, to 17.1%, since peaking in 2010/2011 at 17.6% during the recession. This is due to sluggish job growth during the recovery. Unfortunately 2013 does not look as though we will see much improvement either. The job forecast shows that the jobs being created are in sectors that do not generally utilize very much office space such as construction, manufacturing, and healthcare. With all of the changes in how businesses are using office space, this could be the new norm for the office space market in the US.

Find Office Space

By: James Osgood

Occupancy, Absorption Levels Hold Steady as Market Indicators Find Recovery Continuing at Slow but Steady Pace despite election jitters.

Demand for office space in the U.S. remained steady in the third quarter as leasing activity and absorption of available office space continued to pick up momentum following a lackluster start at the beginning of 2012, CoStar Group reported this week in the company's Third-Quarter 2012 Office Review & Outlook. 

The overall U.S. office vacancy rate edged down and net absorption rose to 15 million square feet during the quarter from 13 million square feet at mid-year 2012. The relatively little new office supply and continued low levels of new office construction supported the balance in supply and demand.

Meanwhile, office tenants continued to enjoy a 'holiday' from rent increases as office rents in most market have yet to budge much from their market trough tipping point, according to analysts for Property and Portfolio Research (PPR), CoStar’s analytics and forecasting division. 

Read More

Find Office Space