Office vacancy rates might still hover higher than pre-recession averages, but the outlook for the market remains positive, reports Marcus & Millichap in its Summer 2016 Office Outlook. (Marcus & Millichap is a GlobeSt.com Thought Leader.)
“As anticipated tenant expansions and job growth continue, the firm characterizes the market as ‘vigorous’ with the expectation of continued momentum,” remarked Al Pontius, SVP/national director of Marcus & Millichap’s Office Division.
“Recent economic trends have sustained growth in office-using employment,” states the report, “triggering tenant expansions and the creation of new office-based businesses. Since office-using payrolls surpassed their prior peak in 2013, the rate of growth has accelerated and captured a broader swath of metros. In the near term, the office sector is poised for future gains. Vacancy rates in many metros are still above the averages posted prior to the recession while construction remains restrained.”