U.S. office property recovery slowing down, says JLL

Office property recovery is not going as well as before.

A report from Jones Lang LaSalle showed that the commercial real estate market may be witnessing a recovery slowdown than seen during the final part of 2010 and all of 2011.

The report showed that during the first quarter of 2012, slightly less than 1 million square feet of commercial real estate space was absorbed in the office sector. This may worry commercial property management companies looking for continued expansion, as the previous six quarters averaged 8.6 million square feet. In addition, leasing was unchanged or dropping in two-thirds of the 45 markets examined in the report.

"Overall, the first quarter presented a mixed bag of results and expectations for the rest of the year," said John Sikaitis, senior vice president of research at Jones Lang LaSalle. "Looking ahead to the remainder of 2012, markets will continue to recover and, in some cases, contract at different rates of speed."

The report added that while commercial construction was low in most parts of the United States, total development activity rose to 33.7 million square feet from a previous 18.1 million square feet.

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