In 2Q 2012, it’s the west coast technology and energy firms that are leading the national charge in US office recovery. So says CRE giant Jones Lang LaSalle’s 2Q 2012 US Office Outlook report. The (mostly good) news:
Second-Quarter 2012 Commercial Real Estate Highlights
- The technology industry accounted for 46 percent net absorption with the energy markettrailing with 23 percent.
- While in 2010 the East Coast comprised 85 percent of net absorption totals, that level decreased to 23 percent in Q2.
- Leasing activity is still very depressed. While up nearly 10 percent from Q1 2012 level, it’s down 17 percent year-over-year – as the result of most tenants negotiating leases extensions in depressed markets in 2010 and 2011.
- Vacancy declined and dipped slightly 17.3 percent, its lowest point since early 2009.
- For the first time in three years, sublease space upticked slightly in the quarter.
- Florida, Arizona and parts of Southern California are experiencing a strong rebound, growing at triple the rate of the rest of the U.S. in Q2.
- Construction remained low across most markets; however, activity has increased in a few cities including Atlanta, Charlotte, Dallas, Houston, New York, Northern Virginia, San Francisco,Silicon Valley and Washington D.C.