Net absorption across three major commercial property types—office, retail and industrial—is projected to total nearly 680 million square feet for the 12-month period ending in December 2016, according to CoStar Group. That’s a 1.5% increase from the same period ending in December 2015. Demand from tenants leasing space has supported the extension of an ongoing pricing recovery, according to the firm's indices.
The general commercial segment, which reflects the performance of smaller properties, had the strongest rate of growth in absorption over the 12-month period ending in December 2016, with total net absorption projected to grow 22.1% in the 12-month period ending in December 2016. Meanwhile, net absorption in the investment-grade segment is expected to decrease 7.6% in the same period, the firm reports.
