rents were in line with long-term averages, and 6 percent of SIOR members
considered that asking rents were below those of one year ago.
• Vacancies continued declining, with 70
percent of respondents reporting lower
• Subleasing availability declined, with
only 8 percent of SIOR respondents
feeling that there was ample sublease
space in their markets; 62 percent
considered subleasing to have a small
influence on the market.
• New construction of office and industrial spaces moved sideways, with 35
percent of SIOR members reporting
new construction during the quarter,
and 19 percent indicating new building
development close to historical averages.
• Development conditions continued
shifting in favor of sellers during the
period, with 53 percent of SIORs rating
it a seller’s market. Investment prices
increased slightly, with 43 percent of re-
spondents indicating prices were above
Local economies performed well during
the quarter, with 58 percent of SIOR
respondents indicating that their local
economies were strong and improving.
Only 9 percent of SIOR members felt
that their local economy was slowing or
contracting. The fourth quarter national
economic performance trickled down
into the local markets, with 55 percent
of SIOR responses indicating a positive
impact upon markets. In contrast, only
7 percent of SIOR respondents experienced a negative impact upon their
markets from national economic conditions (the remainder was neutral).
Regionally, the survey respondents
pointed to solid performance across all
four regions. The West and Northeast
posted the highest quarterly gains— 7. 5
points and 7. 4 points respectively.
The West also recorded the strongest
yearly advance, with a 2.5-point gain.
The South region remained in the top,
with the highest index value—129.3. The
Midwest kept a solid pace of growth,
with the index advancing 2.0 points
year-over-year, at a quarterly value of
Looking ahead at the first quarter of
2017, the majority of SIOR members expect the outlook to improve— 72 percent
of respondents indicated growth in the
1-15 percent range (compared with 56
percent in the prior quarter), while 22
percent felt the market will maintain
current levels. Only 6 percent of SIOR
members expected conditions to decline.
For more information on the SIOR
Commercial Real Estate Index methodology, visit www.sior.com/resources/
Source: BEA, BLS
Payroll Employment KE Y Real GDP