Market Watch First Quarter-2019
Markets expanded in the First Quarter of 2019 as robust activity in Suburban segments pushed absorption rates higher. Absorption totaled 49,953 sq. ft. The sharp advance delivered in the Fourth Quarter continued in early 2019 as no signs of a pullback surfaced. We anticipate the pattern of steady measured demand for quality well managed office properties to continue as we move towards the Summer 2019. We have witnessed a surge in acquisitions in recent months with the lack of new construction fueling this recent trend. Few opportunities exist for owners or investors as inventory has been rapidly acquired over the past six (6) quarters. We expect interest in existing office product to continue as we view demand as simply too strong and availabilities too scarce to shift this momentum. There are opportunities for tenants to make favorable arrangements in certain pockets of each segment of the marketplace. While they are few, we see these areas as specific weak points which have yet to fully recover from the pullback from several years ago. Many of these availabilities are casualties of poor management, functional obsolescence, or simply marginal locations.