07/08/2010

Are Office Fundamentals Turning Upward?

Rents show signs of bottoming out, and select high-quality assets have opportunities to pursue

 
Are Office Fundamentals Turning Upward?

Kurt Padavano, COO, Advance Realty Group (left) and Henry Chamberlain, President and COO of BOMA International, deliver the “State of the Industry,” a mid-year market outlook at the BOMA 2010 International Conference & The Every Building Show.

Commercial construction continues to slacken in 2010, yet stabilization is taking hold in the office market, according to presenters in a mid-year outlook at the BOMA 2010 International Conference & The Every Building Show, which took place in Long Beach, CA, at the end of June.

The presenters – Henry Chamberlain, President and COO of BOMA International, Washington, DC, and Kurt Padavano, COO, Advance Realty Group, Bedminster, NJ – noted that April’s year-over-year commercial construction value was down 36.8 percent, and office construction was down 29.4 percent. However, office vacancy has swelled only marginally so far this year, from 17.4 to 17.8 percent. San Antonio and San Jose have reported declines in office vacancy this year. Moreover, the NCREIF Property Index turned positive during the first quarter at 0.76 percent.

Other signs of improving market fundamentals include an increase of 3 points to 76 in the Real Estate Roundtable’s overall sentiment index during the second quarter. Padavano and Chamberlain also noted that property pricing is stabilizing and capital markets are showing some signs of thawing.  

For the near term, Chamberlain and Padavano see several opportunities for high-quality office assets in this market, including sustainable, energy-efficient product as well as transit-oriented development.

 

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When choosing a metal-clad building for your next construction project, consider Morton Buildings, Inc., and their designBUILD team, we’ll make your dream a reality.

Visit our website today to learn about the design flexibility of a Morton building and the endless possibilities of partnering with our designBUILD team.

Wood construction is both cost and energy efficient. Check out Morton Buildings and our designBUILD team online today to discover all the benefits of post-frame construction.

We Can Help You Reduce Energy by 30%

Our mission is to help our customers manage their buildings' energy costs, improve reliability, and enhance performance while having a positive impact on the environment.
CLICK HERE to find out how.


Mitsubishi Electric’s H2i R2-Series heat pumps provide 100% heating capacity down to 0° F and simultaneous heating and cooling down to -4° F delivering year-round comfort, regardless of climate zone.

 
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