SIOR: Undersupply Begins Catching Up with Industrial, While Office Rebound Continues
The red-hot industrial market is starting to see the effects of high demand and lack of space catching up with each other, according to SIOR’s latest Snapshot Sentiment Report. This caused confidence in the industrial sector to drop for the first time in sentiment reporting.
The average level of confidence in the industrial sector dipped below 8 (out of 10) in the first quarter, declining 6% from 8.2 in Q4 2021 to 7.7 in Q1 2022. Although they’re still prospering despite a pandemic, many SIOR industrial specialists see fewer options amid increasingly low vacancies and continued rising interest rates and construction costs.
Conversely, the office sector is continuing its rebound, with SIORs reporting a higher confidence in market conditions, an improvement in transactions, and both vacancy and subleasing dropping significantly. The average confidence level in the office market rose to 6.5, up 10% from a year ago (at 5.9).
Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 15-20 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces.
Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications.
Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).