DANBURY: The Society of Industrial and Office Realtors [SIOR], released the results of its semi-annual membership survey of its Connecticut/Western Massachusetts chapter’s members . There are more than 3,100 SIOR members in the US and Realtors with the SIOR designation are considered within the industry to be among the most well trained and educated commercial real estate professionals.
According to SIOR, the survey reports “a continuation of the positive trend established earlier in 2016. Responses have trended away from negative to either stable or improvement.”
The majority of respondents [59%] said the market continues to improve, with strength in the commercial industrial sector, but the office market lagging. The SIOR report tracked with the Connecticut Economic Resource Center’s own survey of real estate professionals [72 Realtors and economic development officials] also released in early February.
SIOR Members [37%] said the stability of the market was improving, and expect the market to continue to improve [63%] in 2017.
The Realtors see stronger lease rates for the industrial market, see rates for office leases soft.
No decline is projected for industrial lease rates and members are evenly split between no change (50%) or an increase (50%). Office lease rates are largely expected to remain unchanged (52%) and the remainder is evenly divided between an increase (24%) and a further decline (24%).
A tightening industrial open inventory is overwhelming seen with 82% expecting tightening industrial vacancy rates. Again the office vacancy rates are seen as weak in 2017, by 48% of responders, a quarter of the realtors expect a tightening office market.
Sales prices are tracking the same opinions, with predictions price direction based on sector. Industrial properties are expected to see “upward pressure” by 54% of members stable pricing by41% only 4% expect a decline in pricing among industrial properties.
According to the half of the realtors the office sale market has stabilized, but one third [32%] expect price declines in 2017