THE SOUND OF 2010
|If JLL shares market predictions via webinar, but everyone mutes their speakers for fear of bad news, did it really happen? Consult your local philosopher while we summarize yesterday's session: recovery in the second half of next year.|
Chicago's Josh Gelormini (above), Boston's Ben Breslau (below), and DC's Jon Sikaitis (juuuust right, but not pictured) said government money would still be a major real estate influence in 2010. Jon called office leasing in the US the caboose of the economic train, i.e., the last thing to come into the station. Vacancies should top out around 18 to 19%, with DC leading, already slowing its rental rate dropoffs. Josh said cash will be key in 2010, with lending markets loosening late in the year.
Predictions for our area:
Vacancy rates - slowing with the new office pipeline drying up in early '10.
Leasing velocity - slow, but demand will increase in pockets for well-capitalized landlords.
Recovery in the industrial markets - slow, with heavy competition, including concession packages, for the few tenants still looking for space.