Office market recovery loses steam

The office market has struggled in recovery, as of late.

A recent report from Reis showed that the American office market slowed during the second quarter, and both economic and job issues may have been the reason for the slide.

The national vacancy rate was 17.2 percent for the first half of 2012, which was relatively unchanged from the 17.6 percent recorded in the fourth quarter of 2010, according to Reuters, citing the report.

Effective rents only rose to $22.72 per square foot, which was a 0.3 percent increase during the second quarter. Last year, the increase was double that amount, the report explained.

"It seems like organizations have really become a lot more skeptical of the future," Ryan Severino, senior economist at Reis, told the news source. "There should be more robust recovery at this point. This wasn't a breakneck pace of recovery to begin with."

The report added that the second quarter witnessed a total net absorption of 4.1 million square feet, which was down from the first quarter's 6 million square feet. This could mean that some property management companies have experienced greater issues with rentals for office space.

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