A report from Avison Young showed that the U.S. commercial real estate office market is still recovering, but the process has been slow-going.
Overall, the office market had a vacancy rate of slightly more than 12 percent at the end of the second quarter across the country. The report explained that markets specific to its Mid-Year 2012 U.S. Office Market Report had a vacancy rate of 13.9 percent, which was an improvement from the same point in 2011 when it registered a rate of 14.6 percent. In addition, rents for Class A office properties were $46 per square foot in the central business districts of cities in the report, while it averaged $28 per square foot in suburban areas.
"Improvement rates were uneven with the greatest gains occurring in technology and energy-driven cities," said Earl Webb, president of U.S. operations for Avison Young. "Construction levels are constrained and that has contributed to the gradually falling vacancy, but the key to widespread growth will be job creation."
The report added that the U.S. currently has 25 million square feet in development, with more than three-quarters of it in Washington, D.C., New York and Boston.