Office Space Absorption, Rent Growth See Regional Hikes
Unique dynamics in metro areas mean that some office and multifamily markets are on the upswing while others still face negative absorption and lower rent prices. The market for office space is seeing real signs of improvement as vacancy rates turn the corner into positive absorption of square footage. But the upturn isn’t being felt evenly across the country. “Economic trends—whether it’s interest rates, job growth or inflation—have a direct impact on how businesses and investors approach commercial properties,” said Nadia Evangelou, senior economist and director of real estate research at the National Association of REALTORS®, who shared the outlook for the commercial real estate market during the association’s Real Estate Forecast Summit last week. “In the meantime, commercial real estate has been through a roller coaster ride over the past year.” The glimmer of hope in the office sector comes as companies continue to downsize and vacancies rise. About 2.3 million square feet of office space in the Southeast was absorbed in…
