Commercial Corner: The Office Market

While extremely concerned about the current state of our office market I am encouraged that the recent increase in residential sales - while at much lower prices - will ultimately fuel a renewed interest for office space in the region.

Leasing activity will increase in the coming months as tenants minimally affected by the economic downturn take advantage of the softened market.

Asking rental rates decreased $0.75 psf from last quarter to the present average of $23.10 psf. This downward trend in rental rates is expected to continue well into 2009.

Construction activity will be limited to buildings currently underway as developers put planned projects on hold until the market and economy projects that have already begun construction.

Find out more about these topics and other commercial news in our 3Q08 MarketBeat which can be emailed to you by request. Email me at gary.tasman@cushwake.com and I will respond promptly.

Thanks for reading. I will discuss the industrial market later.