Source: BEA, BLS
Payroll Employment KE Y Real GDP
considered subleasing to have a small
influence on the market.
• New construction of office and industrial spaces picked up, with 40 percent of
SIOR members reporting new construction during the quarter, and 15 percent
indicating new building development
close to historical averages.
• Development conditions continued
shifting in favor of sellers during the
period, with 58 percent of SIORs rating
it a seller’s market. Investment prices
increased slightly, with 46 percent of respondents indicating prices were above
Local economies performed well during
the quarter, with 61 percent of SIOR
respondents indicating that their local
economies were strong and improving.
Only 10 percent of SIOR members felt
that their local economy was slowing or
contracting. Even at a moderate pace,
Regionally, the survey respondents
pointed to rising conditions across all
four regions. While the South record-
ed the quarter high mark—131.3—the
Northeast notched the highest quarterly
gains— 10. 1 points, to a value of 118.3.
The West also recorded a solid yearly
advance, with a 5.1-point gain. The
Midwest registered a slower 0.6-point
advance, yet displayed the second-high-
est quarterly index value, at 127.6.
Looking ahead at the second quarter of
2017, the majority of SIOR members ex-
pect the outlook to improve— 65 percent
of respondents indicated growth in the
1-15 percent range, while 29 percent
felt the markets would maintain current
levels. Only 6 percent of SIOR members
expected conditions to decline.