U.S. Office Market May Have Touched Bottom: Report
The U.S. office market may have touched bottom, with rents stabilizing, according to real estate research firm Reis Inc.
The vacancy rate hit a 17-year high in the third quarter, Reuters reported. Still, the rate rose by just 0.1 percentage point from the previous quarter, while effective rent was little changed at $22.05 a square foot, suggesting the worst may be over with.
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"If we're not there yet, we're pretty close," said Reis economist Ryan Severino.
The vacancy rate has been rising since the third quarter of 2007, when it a cyclical low of 12.5%. In the third quarter of 2010, the rate was 17.5%.
