that rents were in line with long-term
averages, and 34 percent ascertained
that rents were above historical trends.
• Vacancies continued declining, with 71
percent of respondents reporting lower
• Subleasing availability picked up
slightly, with 9 percent of SIOR respondents feeling that there was ample
sublease space in their markets.
• New construction of office and industrial spaces improved, with 41 percent of
SIOR members reporting new construction during the quarter, and 18 percent
indicating new building development
close to historical averages.
• Development conditions continued
shifting in favor of sellers during the
period, with 52 percent of SIORs rating
it a seller’s market. Investment prices
posted a slight decline, with 39 percent
of markets being below construction
Many local economies performed well
during the quarter. Only 12 percent of
SIOR respondents felt that their local
economy was slowing or contracting,
while 52 percent considered their
economy to be strong and improving.
Meanwhile, with the spry performance
of the GDP in the third quarter, the
national economy’s impact was felt on
local markets, with 37 percent of SIOR
responses indicating a positive impact
upon markets. In contrast, 15 percent
of SIOR respondents experienced a
negative impact upon their markets
from national economic conditions (the
remainder was neutral).
Regionally, the survey respondents indi-
cated mixed performance. While all four
regions continued with index values
above 100, the Northeast and West
declined from the second quarter, with
values of 107.3 and 119.7, respectively.
The South region regained the top spot
with an index value of 126.5, although its
performance was flat. The Midwest was
the only region to post an increase, with
a value of 123.3.
Looking ahead at the last quarter of
2016, SIOR members expect the outlook
to improve— 56 percent of respondents
indicated growth in the 1-15 percent
range (compared with 44 percent in the
prior quarter), while 36 percent felt the
market will maintain current levels. Only
8 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