It has been one of the slowest real estate sectors to recover from the recession, but the office market is finally being fueled by job growth. Falling vacancies are giving birth to rising rents, which will benefit real estate investment trusts (REITs) in the space.
"2014 ended with lots of good news and optimistic data, for both the macro-economy and the office market," noted Ryan Severino, senior economist at Reis, a commercial real estate analytics firm. "GDP growth, labor market growth, net absorption and vacancy are all trending in the right direction and at a faster pace over time. Barring some idiosyncratic shock, there is no reason to believe that these trends will not persist in 2015."