Colliers: Office Market Healthy in 3Q

The third quarter was another solid quarter for the national office market, although absorption of office space declined, according to Colliers International, a Boston-based commercial real estate manager.Absorption totaled 23.4 million square feet, down from 27.8 million square feet in the second quarter and 33.6 million square feet in the third quarter of 2005, Colliers reported. The national vacancy rate stood at 13.0%, down from 13.2% in the second quarter and 14.1% a year earlier. "Demand for office space continues at a steady pace, broadly in line with gains in office-using employment -- while construction remains relatively subdued," said Ross Moore, senior vice president and director of research at Colliers. "Market participants should not become complacent, however, as this pattern is almost certain to reverse as a slowing economy will be met by a significant increase in completions." The company can be found online at http://www.colliers.com.