Office Sector Posts Growth in First Quarter, WSJ

New York, NY, April 4, 2016—The U.S. office market grew by 10 million square feet in the first quarter, reports the Wall Street Journal, an indication of strength in the economy as employers continue to expand.

For the prior 12 months, total growth was 45 million square feet, the strongest yearlong period since 2007, according to real-estate research firm Reis Inc.

The vacancy rate for the first quarter was 16.2%, down from 16.3% the prior quarter and 17.6% in 2010. Rents grew to an average of $25.20 per square foot per year, up 3% from a year earlier, Reis said. The data cover 79 metropolitan areas.

While the growth is stronger than it has been in a nearly a decade, the pace of expansion is still considerably slower than in past times of economic expansion, when 15 million square feet to 20 million square feet of expansion was common in a quarter.