industrial and office markets, declined to 54. 9
from 57. 5 in the first quarter. Both office and
industrial sectors declined—the office index
decreased 1. 5 points while the industrial index
declined 3. 6 points. The weakening national
economic conditions are taking a toll on local
industrial and office markets. Three of the
country’s main regions posted declines in mar
SIOR Commercial Markets
Commercial markets in the Northeast
posted the largest decline during the second
quarter— 7. 8 points to an index value of 56. 1.
Markets in the Midwest and South also con
tracted, although the South remains in com
paratively better position overall. The only
region to register an increase was the West,
which rose 1. 8 points during the quarter.
Leasing activity declined from the first
quarter of the year and practitioners reported
unchanged vacancies. In addition, rents were
below their level from a year ago according
to 71 percent of respondents. Concessions
remain the norm in order to attract and retain
tenants, with 94 percent of SIORs considering
it a tenant’s market.
Construction of new commercial space
remains limited. SIOR respondents indicate
that development conditions make it a buyer’s
market, where acquisition prices are lower
than construction costs in 83 percent of the
markets. Respondents pointed to weak local
and national economies as a main reason for
the decline in commercial properties.
Based on the results of the second quarter
survey, commercial markets are reacting to
broader trends in the economy. SIOR mem
bers are pointing to a leveling of the market,
without the optimism of the first quarter.
Only 62 percent of respondents expect market
improvements in the next three months, com
pared with 94 percent with similar expecta
tions during the first quarter of the year.
Weighing the results of the SIOR Index
during the second quarter 2011, commercial
real estate markets are likely to experience
some bumpiness ahead. As the economy is
still struggling with uneven performance,
so are office and industrial markets working
through remaining challenges.
Commercial Real Estate Index
Industrial | Land | Investments
LAS VEGAS INDUSTRIAL REAL ESTATE
Dean Willmore, SIOR
(702) 796-7900 (O) | (702) 596-8880 (C)
email@example.com | www.comre.com
Frank M. Campbell, Crump Commercial, in Memphis, TN,
passed away on February 20, 2011. Frank joined SIOR in 1960
as an Industrial Specialist. After serving in the military, he joined
the Edward LeMaster Real Estate firm in Memphis where he soon
became a partner. Frank came to be known locally as “Dean of the
Ethical Deal.” He was also an SIOR Legacy Circle member.