NAIOP Forecasts Growth in Office Space Absorption
For the past two decades, PCCP has operated as an integrated real estate investment management firm with offices in San Francisco, Los Angeles, and New York. As an active player in the industry, PCCP is a member of NAIOP, also known as the Commercial Real Estate Development Association.
According to a recent report by NAIOP, the net absorption rate for office space is predicted to be 10.4 million square feet for each quarter for 2018, which is over one million square feet higher than previously estimated. For the last six months of 2017, the United States experienced a total GDP growth of over 3 percent, which is having a cascade effect on projections for a number of markets, including the commercial real estate sector. The increased estimate follows two quarters of solid growth, and this trend represents the period of stability during the past eight years following the 2008 recession.
With growth projected to continue for as long as two additional years, experts predict office space absorption will continue to increase at a healthy pace.