sior-commercial-real-estate-index-press-release-february-20091

The Society of Industrial and Office Realtors (SIOR), in conjunction with the National Association of Realtors (NAR) released their 4Q08 Commercial Real Estate Index.  The national index, which is derived from surveys of SIOR members nationwide, came in at 48.7.  A score of 100 on the index represents a balanced real estate market.  Less than 100 indicates deteriorating conditions, more than 100 represents expansion of the market.  The 4Q08 value represented the eight straight quarter where the index has fallen and the largest quarter over quarter drop since the market begin falling in the Spring of 2007.

Overall, I’m not sure there are any big surprises in the report.  However, it does serve as a more scientific confirmation to what many of us are seeing and feeling.  Some of the findings include:

• It’s a tenant’s market out there – significant concessions are available
• It’s a good time to be a purchaser – if you can get debt funding
• Little to no new construction on the horizon
• Leasing activity is down, vacancy rates are up
• The Office market (41.5 points) is fairing worse than the industrial market (43.6 points), barely
• The South is doing better than other regions (54.2 points)
• The Northeast is doing worse than other regions (50.4 points)
• The West is doing much worse than other regions (39.3 points)

That sounds pretty much in line with what I am seeing.  Anyone seeing anything different in their market?