![]() While the continued presence of covid, in a new form, continues to spark uncertainty in many markets, the demand for office space has remained steady up to the end of last year, according to a new CBRE report. Based in Dallas, CBRE stands for Coldwell Banker Richard Ellis and is the largest commercial real estate services company in the world. “Uncertainty typically hampers leasing activity,” remarks Nicole LaRusso, a director of research and analysis for the company CBRE Group. “But,” continues LaRusso in a statement, “two indices referenced by CBRE indicate only tiny losses in office space leasing as of November, with a third holding steady. It appears that companies remain focused on their long-term needs for office space.” Using a measurement known as the Tenant-in-the-Market Index, the CRBE report shows that the office markets surveyed held steady with an average 85 ranking as of November. A robust 50% of the markets came in above 90. Leaders in the survey include New York and Houston, both ranked in the mid to upper 90s, and the big Dallas-Fort Worth metro market coming in at 101. Showing a gradually improving picture, the Tenants-in-the-Market Index was at 69 overall just over a year ago. Looking forward, CRBE has released an extensive report called 2022 U.S. Real Estate Market Outlook in which it is predicting a “positive outlook for the economy and commercial real estate” in the coming year. In an overview of the report, Richard Barkham, global chief economist and head of research for CRBE, noted that while the recent Omicron variant is creating market uncertainty as it pertains to new office leasing, “fiscal and monetary policy remains highly supportive of economic growth.” Barkham is additionally forecasting that the “supply/demand balance in the office sector will remain highly favorable for occupiers, but the pace of recovery will pick up following a sluggish 2021.” By Garry Boulard
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