The index is 2.7% higher than the first quarter of 2005 when itstood at 115.7. The first quarter index marked four straightquarters of growth, with improvement seen in 10 of the last 11quarters. David Lereah, NAR's chief economist, tells GlobeSt.comthat such modest increases are good for the commercial sector. "Youdon't want overbuilding as we have had in the past."
Net absorption in the office and industrial sectors in thefourth quarter is projected to be 135 to 155 million sf. About$284.5 billion in additional commercial construction is expected inthe fourth quarter, an increase of $17.4 billion above the $267.1billion recorded in the first quarter.
Continuing an ongoing trend, the Washington, DC-area is amongthe leading cities for office growth, Lereah says. "For the lastyear now, Washington, DC has been either on the top or very closeto the top of the lists for office." He attributes it to the city'sgovernment base and robust technology sector.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
