Office Demand Reaches Pre-Recession Peak
Many investors don't believe job growth is as strong as reported. But whatever the case may be the news of growth is encouraging business growth and very strong demand for office space. In fact, in February 2015, investments in U.S. office space soared to a seven-year high of $119 billion.
And it shows no real signs of slowing, as the office market logged 29 million square feet of net absorption in Q3, the second highest quarterly total in nine years. Better yet, as the office space market recovers from recession lows, 2015 is turning out to be one of the best on record for demand, according to real estate research firm Reis Inc.
“Improvement is becoming stronger and more consistent, which portends better times ahead for the office market over the next five years," said Ryan Severino, senior economist and director of research for Reis Inc., in the report, as quoted by The Boston Business Journal.
Look at Manhattan, for example.
About 60 million square feet of new office space will be needed there by 2025, says Bloomberg, just to meet to demand from an explosively growing tech industry.