HARTFORD –– The most recent survey of members of members of the Connecticut/western Massachusetts chapter of SIOR shows most are optimistic about commercial real estate market conditions in the region. More than 56 percent said conditions had either stabilized or improved during the second half of 2011, compared to the first six months of the year.
More than 66 percent of respondents expect improvement in market conditions during 2012, while 31 percent forecast no change and one percent anticipates further decline. Members also indicated that industrial and office markets have stabilized, although a “significant minority” fret about further declines in market lease rates. Eighty percent of members believe industrial lease rates will remain unchanged while 20 percent anticipate a decline. Sixty percent think office lease rates will remain unchanged while 36 percent foresee a decline and four percent expect rates to increase.
Respondents expect industrial vacancy rates to decrease [48 percent], remain unchanged [44 percent] or increase [eight percent], while office vacancy rates will decrease [37.5 percent], remain unchanged [37.5 percent] or increase [25 percent].