SIOR Commercial Real Estate Index Rose to the Highest Level Since 2005 in June of 2018.

The addition of over 230,000 new jobs within health care and business services creates rapid commercial real estate growth detailed in this quarter’s report

WASHINGTON, DC -  The Society of Industrial and Office Realtors® (SIOR), which represents the world’s elite in industrial and office brokerage, recently published the First Quarter 2018 SIOR Commercial Real Estate Index, compiling results of the U.S.-based member-wide survey. Boasting upon broad economic activity, the index rose to its highest value since its creation in 2005. With gains in business investments, consumer spending, exports, and government spending, results of the CRE Index detailed many positive findings.

“The gains in every aspect are a great sign of what is to come this year,” said Del Markward, SIOR Global President. “With many SIORs feeling confident about their markets moving forward, and having the highest index in over 12 years, everyone is eager to see where we’ll be next quarter—and we are enthusiastic about the delivery for our clients.”

With a value of 100 on the index indicating a balanced market, the national index closed the first quarter of 2018 at an all-time high of 134, creating a positive expectation for the remainder of 2018. SIOR members experienced gain in fundamentals such as leasing activity, rent stabilization, new construction of office and industrial spaces, and development conditions shifting in favor of sellers. The addition of more than230,000 new jobs in health care and business services posed the market for an upswing.

While struggling through international tariffs and a new tax framework, according to the SIOR CRE Index, commercial markets are posed for positive results throughout 2018. The majority of SIOR members expect conditions to improve, with 64 percent of respondents indicating growth. Along with the national economy rising, favorably impacting the markets, only one percent of SIOR members experienced loses upon their markets from national economic conditions, and three percent felt that their local economy was decreasing.

For more than 75 years, the SIOR designation has signified the highest standard among industrial and office professionals. Established in 1941, SIOR now extends to 48 chapters worldwide, consisting of nearly 3,200 members in more than 685 cities in 36 countries.

The index, which was developed by Hugh F. Kelly, CRE, clinical professor at New York University, showcases the findings of a survey based on 10 variables, from leasing activity to the impact of the national economy, vital to the performance of U.S. industrial and office markets.

To see more findings of the SIOR CRE Index, click here.