Thereb s a glimmer of hope for the office market, as new research from Reis Inc. shows office rents are starting to stabilize. In the past three months, average rents decreased by only a cent, which is the smallest decline since 2008, according to The Wall Street Journal.
Nevertheless, signs do point to a very slow recovery. As unemployment has risen over the last couple of years, so has the available work space in office buildings. We also reported in August that office tenants are learning to get by with less space, a trend businesses are likely to continue. So even when companies start hiring again, they wonb t need additional space immediately.
Also slowing the recovery, a lot of commercial real estate debt will be due by the end of 2014. For more information, read the whole article from The WSJ. Then let us know what you think. Is a slow recovery on the way?
Graphic: Bloomberg for The Wall Street Journal
Tags: businesses, commercial real estate, office buildings, office market, rents, tenants
