Office space demand across the country over the third quarter remained constant while absorption of available space continued to gain momentum. According to the CoStar Group’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. Little new supply and construction helped balance the supply and demand.
It still remains a tenants market however as there has been a lack of rent increases in most markets. Leasing activity in general is expected to exceed 135 million square feet nationally for the third quarter, eclipsing the 130 million leased during the second quarter. After a weak start to the year, landlords are beginning to see office-using job growth translate into leasing decisions and momentum.
To read the full article from the CoStar Group, click here.