Colliers Sees Improving Office, Industrial Markets

Office and industrial markets nationwide saw increased uptake of space in the second quarter, according to Colliers International, a Boston-based commercial real estate manager.As much as 16.3 million square feet of office space was absorbed in the second quarter, up from 13 million square feet in the first quarter, Colliers said. This represents the fifth consecutive period of positive absorption for office markets. In comparison, total uptake for 2003 was 27 million square feet, the firm said. Colliers says it now expects that total office market space absorption for 2004 could be as much as 60 million square feet, an upward revision of its earlier forecast of 50 million square feet. "Healthy gains in job growth during the first half of the year will translate into sustained demand for office space throughout 2004," said Ross Moore, vice president and director of research at Colliers. Industrial real estate markets also improved in the second quarter, with 38.4 million square feet of absorption, up from 9.8 million square feet in the first quarter. Year-to-date industrial space absorption is now 48.2 million square feet, Colliers said. "We have nearly equaled the absorption from 2003 already this year, and most markets are forecasting that demand will stay at current levels or higher for the remainder of 2004," Mr. Moore said.