Industrial Properties Fare Better Than Commercial
The Society of Industrial & Office Realtors (SIOR) recently released their Commercial Real Estate Index. This Index indicates that recent improvements in commercial vacancy rates, active demand for new building sites, and a vanishing overhang of sublet space are the clearest indicators of increasingly positive fundamentals for industrial and office real estate.
Furthermore, industrial real estate seems to be performing slightly better than office real estate. Reasons why industrials seem to be performing better include a lower volume of sublet space, fewer rental concessions, and are more advanced in readiness to accept new construction. Offices, by comparison, have enjoyed better asking rent gains, a slightly more active market for site acquisition, and a more significant positive contribution from local economic conditions.