HARTFORD –– Most members of the Connecticut/Western Massachusetts chapter of SIOR believe market conditions stabilized during the second half of 2012 and are likely to improve in 2013.
Nearly all of the group’s 50 members responded to its latest poll, covering July 2012 to December 2012.
Fifty-two percent of respondents said market conditions stabilized during the second half of 2012, while 36 percent said they improved. Fifty-eight percent were optimistic about 2013, 32 percent expected no change and ten percent predicted declines.
Members were less sanguine about lease rates during 2013. Eighty-eight percent of respondents expect industrial rates to remain the same; 12 percent predict increases. Ninety-three percent believe office lease rates won’t change and seven percent expect declines.
Forty-seven percent of respondents expect industrial vacancy rates to hold steady during 2013, while 41 percent anticipate decreases and 12 percent expect increases.
Fifty seven percent of respondents believe office vacancies will remain largely unchanged, 36 percent expect decreases and nine percent predict increases.
Most respondents believe prices have stabilized for industrial properties (70 percent) and for office properties (72 percent). They also think improvements in market conditions during 2013, however, will be “slight and slow,” due to high employment and forthcoming state and federal tax hikes, among other factors.