The trophy markets, like New York, San Francisco and Washington, DC may not be the best bets, as they’re already pricey and vacancies there are the tightest in the nation, but PwC is finding big trading volume in properties in Austin, TX, Raleigh-Durham, NC, the Pacific Northwest and northern New Jersey.
“This is where investors are running looking for opportunities and hopefully getting there first because it is a bit of a horse race,” says Roschelle.
The office recovery will be slow, as unfortunately a substantial portion of the jobs being created are not in the office-using sectors, according to Reis.
“Organizations have become much more cautious in their outlook and hiring in recent months due to the heightened uncertainty looming over the economy,” analysts at Reis note. But Roschelle claims the slow growth in the economy is already “baked into the numbers as it relates to the models that prospective investors are using to forecast what the future looks like.”
He’s certainly not expecting a boom, but given the short supply of space and the fact that it takes a few years to build a building, the prospects for growth appear to be improving.
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