CHICAGO, April 4, 2012 /PRNewswire/ -- The recovery across the U.S. office sector continued in the first quarter of 2012, but at a substantially slower pace than witnessed in the latter part of 2010 and throughout 2011, according to Jones Lang LaSalle's First-Quarter 2012 Office Outlook.
"Overall, the first quarter presented a mixed bag of results and expectations for the rest of the year," said John Sikaitis, Senior Vice President of Research at Jones Lang LaSalle. "While the recovery slowed during the quarter, it remains intact. Looking ahead to the remainder of 2012, markets will continue to recover and, in some cases, contract at different rates of speed. Overall rents across most markets will grow, but at slow and measured paces unless some significant cushion of technology or energy pockets exist."
First-Quarter 2012 Commercial Real Estate Highlights
- The U.S. office market absorbed a little less than 1 million square feet during the quarter – far below the 8.6 million square feet averaged over the prior six quarters.
- Nearly two-thirds of the 45 markets tracked demonstrated stable or declining leasing volumes.
- Technology expansion and startup activity gained momentum in almost every market with prospects for growth.
- Energy-heavy markets posted some of the largest leases and witnessed sales momentum and speculative new construction.
- Despite declines in leasing volume, 57.8 percent of the markets saw gains in tour velocity and active tenants compared to the previous quarter.
- Sales activity and volume was evenly distributed among geographies with nearly one third of markets reporting an uptick in sales.
- Construction remained low across most markets; however, activity has increased from 18.1 million square feet under development to 33.7 million square feet.
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