Colliers: 'Anemic' Office Demand to Persist

Citing the results of a fourth-quarter survey, Boston-based Colliers International is projecting that demand for office space will remain "anemic" for the next few quarters.Absorption remained negative for the eighth consecutive quarter, and vacancy rates rose to 16.3% from 15.8% in the third quarter and 14.1% a year earlier, the company said. Sublease space accounted for 20.5% of all vacant space, totaling more than 140 million square feet in the United States, double the 70 million square feet in a normal office market, Colliers said. "With moderate levels of new construction added to the market and continued delivery of sublease space, we still have a few quarters of flat to moderately negative growth to come," said Ross Moore, the company's director of research. "With continued job losses, low business confidence indicators, and looming geopolitical risks, we can't expect a return to robust real estate markets any time in the near future." Colliers can be found online at http://www.colliers.com.