Oct 2 U.S. national vacancy rate for the office
sector in the third quarter was flat from the second, even as
vacancy fell 20 basis points year to date, according to real
estate research firm Reis Inc.
Asking and effective rents growth for the office sector
increased compared with the previous quarter, Reis said in a
National vacancy rate remained at 16 percent for a third
successive quarter, while the year-over-year decline in vacancy
was 40 basis points, the company said.
Construction activity fell from the second quarter, with 6.4
million square feet of new office construction completed during
"Although the rolling 12-month total is increasing over
time, the reality is that new construction is low and will
continue to be low by historical standards, even as it increases
over time," Barbara Denham, senior economist at Reis, said.
Asking rent for the sector grew by 0.3 percent while
effective rent rose by 0.4 percent in the third quarter. Asking
and effective rent had risen 0.6 percent in the second quarter.
Office market statistics are expected to improve noticeably
in the coming quarters and recent employment growth should
reduce vacancy rate toward 15.8 percent in 2016, Denham added.
(Reporting by Shashwat Awasthi in Bengaluru; Editing by Shounak