Colliers: Office Market Rebounds Modestly

The U.S. office market "staged a modest comeback" in the second quarter as absorption increased 34% and rents continued to surge, according to Colliers International, a Boston-based commercial real estate manager.Absorption totaled 18.3 million square feet, up from 13.7 million square feet in the first quarter but down from 27.8 million square feet in the second quarter of 2006, Colliers reported. Downtown asking rents jumped 8.3% in the quarter to $46.81 per square foot, while suburban rents rose 4.5% to $27.45 per square foot, the company said. "As predicted, demand for office space picked up relative to the first quarter, but is still operating below anticipated levels," said Ross Moore, senior vice president and director of market and economic research at Colliers. "Of particular concern is the slowdown in office-using employment. However, that aside, the story is generally the same -- steady demand, significant increases in rents, and a gradual increase in supply." The company can be found online at http://www.colliers.com.