Office market fundamentals show moderate growth
Office sector fundamentals are picking up in several major U.S. markets, according to the third quarter edition of Insights + Trends + Opportunities from Transwestern and Delta Associates. During first half 2015, trends in office fundamentals were mainly positive in the country’s large metro areas.
Dallas is the leading performer for net absorption, with 2.8 million square feet of positive absorption in first half 2015. Boston and Philadelphia also had positive absorption greater than 2 million square feet, while Chicago, Miami, San Francisco, and Washington, D.C., all had absorption of less than 500,000 square feet.
Most vacancy rates have remained high. Philadelphia vacancies came in at 18.3 percent, and rates exceeded 15.0 percent in Atlanta, Chicago and Los Angeles. San Francisco has seen its vacancy rate decline to 7.4 percent; New York City and Denver also were below 10.0 percent, at 7.6 percent and 9.9 percent, respectively.
Atlanta, Dallas and