Jan 3 U.S. office vacancy rate declined in the
fourth quarter to the lowest level since the second quarter of
2009, according to real estate research firm Reis Inc.
The national vacancy rate declined in the fourth quarter to
15.7 percent from 15.9 percent in the preceding quarter, Reis
said in a report.
However, asking and effective rents growth decelerated in
the quarter from the third.
Asking rent grew by 0.3 percent, while effective rent rose
by 0.4 percent in the most recent quarter, according to the
report. Asking and effective rents had risen 0.4 percent in the
"... over time as demand continues to exceed new
construction, vacancy should decline and rent growth will likely
pick up as a result," said Barbara Denham, senior economist at
Construction activity rose from the third quarter, with 8.53
million square feet of new office construction completed during
The recent employment growth should pull the vacancy rate
down further in 2017, while rent growth should accelerate back
towards a 3 percent annual growth rate, the firm said.
(Reporting by Rachit Vats in Bengaluru; Editing by Sriraj