Commercial Real Estate Index
Commercial Real Estate Solutions
Roanoke, Virginia 24011
Transactions Completed in Over 135
CCIM, SIOR, CPM, CRE
President & Managing Broker
in the West increased 2. 9 points over the second
quarter, but trailed the other regions.
With positive employment in office-cen-tered industries, coupled with continued trade
supporting industrial spaces, leasing activity
increased in the third quarter—over 40 percent
of respondents found activity in line with or
higher than historic levels. Vacancy rates continued in a downward trend, with 84 percent
of SIORs pointing to vacancies which are the
same or lower than a year ago. Concessions
remain the norm for 75 percent of respondents,
an improvement from the past few quarters.
Subleasing availability was mostly unchanged
from the first quarter, with 22 percent of SIORs
reporting ample sublease space. With fundamentals notching gains, rents rose, as 62 percent
of practitioners reported rents in line with or
slightly above long-term averages.
Construction of new commercial space was
flat in the third quarter, maintaining the lack of
pressure on the supply side. Development conditions continued to strengthen—even though
they remain in buyers’ favor—acquisition prices
were lower than construction costs in 79 percent
of the markets. The national economy remains
a drag on local economies and markets—78
percent of SIORs found the national economy
to have a negative impact upon their markets.
However, that figure improved from the 81 percent registered in the second quarter.
Looking at the broader landscape, commercial markets remain resilient against economic trends. Fundamentals are continuing the
improve and SIOR members expect conditions
to remain positive going into the last quarter of
2012—62 percent of respondents anticipate better markets in the next three months, while 30
percent project no change.