According to CoStar Portfolio Strategy now is the time to be invested in commercial office space. Various tailwinds have propelled the sector to stardom since its collapse during the financial crisis. Walter Page, director of office research at CoStar states that office space has reached its “sweet spot in the market cycle.” Vacancies have fallen a half of a percent from last year, rents have risen 3.5 percent year over year and the net absorption of office space has seen significant gains in the last year. This proverbial perfect storm of factors had led many investors to the sector in search of yield in an environment where high yields on relatively safe investments can be hard to come by.
The rebound isn’t confined to one region of the country. Hans Nordby, managing director of CoStar, says that, “This is the prettiest picture you’re likely to see in this economic cycle. If you’re waiting for ‘as good as it gets,’ it’s probably today in terms of year-over-year office employment growth being so pervasive.” Among business sectors excelling are the technology and energy sectors. The domestic energy boom has many energy companies, large and small, looking for additional office space in areas closer to the action like Houston, while tech companies often look for space in California.
Similarly, Miami has seen a nice resurgence in commercial real estate activity since the recession began in 2008. With one of the globe’s fastest growing real estate markets, Miami offers an international business center, cultural hub and one of the country’s best entertainment centers. If you are interested in commercial real estate here in Miami feel free to reach out to a RE/MAX agent today regarding the variety of opportunities presented here!