Survey: office vacancies to increase

Commercial real estate brokers expect an increase in office vacancy rates in southwest New England in the coming months, but expect the change will have little impact on lease rates.

The Connecticut/Western Massachusetts chapter of the Society of Industrial and Office Realtors (SIOR) polls its membership on a semiannual basis. Sixty percent of SIOR members said they expect no change in overall commercial real estate market conditions for the remainder of this year, with 36 percent expecting an improvement and just 4 percent a decline.

Despite more than four in 10 saying they expect an increase in office vacancy rates, lease rates will remain unchanged, according to 70 percent of members, though fully a quarter of those surveyed said they expect a decline in rates.

Industrial lease rates will remain unchanged according to 80 percent of members, with a slim 15 percent expecting lower rents in the near future.