The opportunities to increase rents and reap higher property incomes on their property investments are created by a combination of falling vacancy, rising net absorption and controlled supply of new office space. According to the CoStar Portfolio Strategy economists the U.S. office market has reached just such as sweet spot in the market cycle. From the beginning of the year through the third quarter about 57 million square feet of net office space was absorbed, a full one-third increase from 43 million square feet of office space absorption a year ago.
Excerpts from the Article:
“Conditions in the U.S. office market are aligning in a way that office investors have dreamed about. A serendipitous combination of falling vacancy, rising net absorption and a controlled supply of new office space is creating broad-based opportunities to increase rents and reap higher property incomes on their office property investments.” Citation and link: Drummer, Randyl. “As Good As It Gets? Office Market Moving Into Sweet Spot In Recovery.” CoStar. News., 22 Oct. 2014 Web. 23 Oct. 2014.http://www.costar.com/News/Article/As-Good-As-It-Gets-Office-Market-Moving-Into-Sweet-Spot-In-Recovery/165310