The Election and its Effect on Commercial Real Estate Pricing
By Jotham Sederstrom November 1, 2012 11:15 am
reprints
2008 – Obama: 9.7%/$64.52
During the last four years, the vacancy rate shot to 13.5 percent (the highest since late 1996) while asking rents dropped to $47.23 (late 2009 into 2010 was the roughest patch). The statistics have since improved greatly (thanks to TAMI, but not so much to financial services), yet we have flattened out over the past few months leading into the election.
2012 – ?: 10.3%/$56.52 (end of September)
No matter who wins, there is a lot to deal with going forward that will affect the local market—including, but not limited to, the ever-closer fiscal cliff and (more directly) the variety of financial regulations yet to be fully implemented. It will doubtless be another interesting four years. Good luck to the winner!
Data for each period is from the end of October, except for 2012, which is from the end of September (asking rents are not adjusted for inflation).
Robert Sammons, Cassidy Turley
