It has been a slow and steady process, but new office construction is finally approaching its long-term average in the U.S.
In fact, newly constructed office space exceeded demand in the first quarter of 2015.
Approximately 15 million square feet of new office space came on-line in the U.S. during the first three months of 2015. This surpassed net absorption by 3 million square feet for the same period.
There was approximately 108 million square feet under construction at the end of the first quarter 2015. This equates to an increase of 17% compared to the same period a year ago. This is quite an improvement from the historical low of 50 million square feet in 2010.
Increasing office rents are making new construction a viable alternative to purchasing an existing building. If this trend continues, the amount of office space under construction will continue to move closer to the quarterly historical average of 122 million square feet under construction.
Courtney joined Meridian Realty in 2013 and has been a great addition to the team. She brought with her a background in Association and Multi-family management when she relocated back to the Triad last year. I found a rare break in Courtney’s schedule to ask her a few questions for this month’s blog.
Commercial real estate practitioners are frequently asked how commercial properties are rated. While there can be some variation by market, properties are typically classified for comparison purposes using one of two classification systems. The two systems are Metropolitan and International.
Things are coming to life at this Meridian Realty managed shopping center off Hanes Mall Blvd in Winston-Salem. A surge of new tenants have been busy moving into thousands of previously vacant square footage at this shopping center. The new tenant theme seems to be Work & Eat, so if you’re looking to Play you’ll have to venture somewhere else for the time being.