In most Midwest cities it’s a toss-up over whether the retail or office sector took the biggest hit during the Great Recession.
That’s why it’s inspiring to read of falling vacancy rates and higher rents in these sectors.
The latest good news for the office sector came from CBRE in Indianapolis. According to Mike Cagna, research coordinator for CBRE’s Indianapolis office, the Indianapolis area saw its office vacancy rate fall to 19.6 percent in the second quarter. This comes after the Indianapolis office market — both in the suburbs and in the city’s downtown — absorbed 146,000 square feet of office space through the first half of 2012.
Of course, this market still has a ways to go before it is as strong as it was before the recession hit. Even with the positive net absorption this year, the office vacancy rate in the Indianapolis region only fell slightly from its 20-percent rate at the end of 2011.
Still, any positive news in the office sector is welcome. It’s a sign that the commercial real estate industry, despite its persistent problems, is in the middle of a slow but persistent recovery.
– Dan Rafter