On Power Trading Radio last week we talked about the commercial real estate market, its makeup and some of the current trends.
The commercial real estate market is more segmented than the residential market. Let’s look at each market segment and its specific market conditions.
Office Market: According to the Office Outlook Report, created by Jones Lang LaSalle for Q2 2012, “…national absorption levels jumped back to 2010 and 2011 quarterly averages with the amount of occupied space increasing by 9.2 million square feet in the second quarter.” The recovery that is being experienced in this market is exclusively driven by a few geographic areas; the west coast and tech industries (account for more that 55 percent of the absorption gains). Texas (Dallas, Houston and Austin) and Denver are showing big gains as well.
Industrial Market:
Small buildings nationwide have seen increases in 2012 to the highest level since 2008.
Lawrence Yun, chief economist for the National Association of Realtors (NAR) said “Industrial and warehouse space is holding on better because imports and exports have advanced. While exports to Europe generally are down, trade has been… Continue Reading
