Recently, Colliers International conducted a study on the relationship between office vacancy rates and commercial rents. Are you considering an office move and are wondering what they found? Not much, according to the research. Despite the office market starting 2011 on a strong note, rents still aren’t on the rise. According to the experts, this is no surprise.
In fact, rents are languishing at the bottom right now. The economy is growing and we need a surge in employment for true economic growth. However, it does not appear that this is quite happening in the private job sector at the moment and this is borne out when you take a look at the U.S. office market. The road to recovery is slow, so commercial relocations and rentals will eventually increase.
During the last quarter of 2010, both professional and business employment was up just over 2%. That means that widespread rent increases are sure to follow, but probably not so soon. If you are planning on relocating your business, you may want to take advantage of this period. In a sense, it is an office renter’s market, potentially making now a good time to make your move.
Office relocation is never an easy feat, so if it is something in your business’ near future, it is a good idea to keep an eye on the current market trends. This is especially true if you are planning on renting your company’s new location.
– Lance Grooms