Office Market Continues Downward Spiral

Collier’s International, a leading international real estate services firm, just released its Q3 office report, which shows that the office market is maintaining a steady decline and national office vacancies, currently at 13.7 percent, are up for the fourth consecutive quarter.

The rise in vacancies is consistent in both the suburban and downtown markets, with the suburbs leading the trend at 14.8 percent. The downtown market, which is typically stronger than its outlying counterpart, came in slightly lower at 11.4 percent. Collier analysts say that the decreasing demand for office space is consistent with the unstable economy, continuing credit freeze, and diminishing work force.

As Q4 begins with recession-like characteristics, Colliers analysts expect the government’s recent bailout efforts and a new administration in the White House in January to lead the way to a slow, but certain recovery in Q1 of 2009.

Source: Colliers International