Market for Office Space Showing Strength

New York, NY, July 6, 2011 -- There are signs that the market for office space is heating up.

The U.S. office market gained 3.7 million square feet of net occupied space in the three months through June, the third straight quarterly increase, Reis Inc. said.

Vacancies declined or were unchanged in nine of the 10 largest office markets, and declined in more than half of the 79 metropolitan areas surveyed, according to the property-research firm.

Demand for space from large technology companies is leading a rebound in U.S. office rents, and buildings in central business districts are seeing the greatest demand.

Effective rents rose in six of the top 10 markets last quarter, Reis said.