US Office Vacancy Rate and 2017 Outlook – What It Means For You
Commercial real estate tycoons, get your wallets ready; the national office vacancy rate has officially declined to 15.7 percent! According to real estate research firms such as Reis Inc., this is the lowest office vacancy rate the US has seen since the second quarter of 2009. While this sounds good, what exactly does this mean for those investing in commercial real estate?
It means that commercial real estate is increasing in demand! As employment rates and the economy, in general, continue to improve, more businesses and entrepreneurs will have the means and desire to lease commercial real estate. Not only will this lead to less empty office buildings, but naturally, higher rents and a strong demand for the best locations.
With that said, while a falling vacancy rate is obviously an optimistic trend, industry experts are still preaching a brand of caution for this news. Evolving technological changes like the “Internet of Things” and an emphasis on cyber security combined with sweeping changes in demographics such as growing urbanization and the longevity of Boomers will definitely paint a new picture of the commercial real estate landscape. What that picture is, well, still up for debate.
As of right now, growth is happening in the commercial real estate sphere, but it’s definitely a slow one. We advise investigating the market for opportunities which spell immediate financial success, while doing your homework on future trends and what kind of impact they will have on the future of our industry.