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CRE Market Snapshot

SIOR Snapshot Sentiment Report

Third Quarter 2021 Report

Download the most recent SIOR Snapshot Sentiment Report (PDF)

The third quarter of 2021 has seen a compilation of disruptions impacting the industry: from the Delta variant surge, to labor and inventory shortages, to the rise in construction prices and supply chain constraints. There is a struggle for larger tenants to commit long term, and the second quarter confidence of the office sector has been replaced by frustration and hesitancy. While the industrial sector is booming, there is a lack of developable land and a short supply of inventory, ultimately creating massive price hikes. In this most recent Society of Industrial and Office Realtors (SIOR) Snapshot Sentiment Report, many expect a tight market for the foreseeable future and the findings reflect a cautious outlook for what lies ahead.

  • Overall market remained mostly unchanged, going from 7.6 to 7.5 (out of 10), the first drop since the fourth quarter 2020. The decrease comes from the office sector, which fell from 6.7 to 6.2
  • Transactions continue to improve, with SIORs reporting 82% of deals are on schedule, a 4% increase from last quarter.
  • Leasing activity rose again to its highest level reported, with 76% of SIORs reporting more leasing (up from 72% in Q2)
  • Overall asking rents continued to rise, with 75% noting higher asking rents in Q3, up from 64% in Q2. 94% of industrial specialists reported higher asking rents compared to 31% of office specialists.
  • Available vacancy is at its lowest in three years, with 68% noting low vacancy. 84% of industrial specialists and 31% of office brokers noted low vacancy.
  • Overall landlords continue to hold the bargaining power, as available tenant concessions declined more this quarter, with 23% of SIORs reported seeing extensive or moderate concessions and a favorable tenant market.

The following data can also now be found in the Snapshot Sentiment Report:

  • Leasing Activity
  • Asking Rents
  • Vacancy Conditions
  • Subleasing Space
  • Development Conditions
  • Site Acquisition Conditions
  • Tenant Concessions
  • Investment Pricing Conditions

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PREVIOUS SIOR SENTIMENT REPORTS

Download previous sentiment reports (PDF).

Second Quarter 2021 REPORT

First Quarter 2021 REPORT

Fourth Quarter 2020 REPORT

SEPTEMBER 2020 REPORT

AUGUST 2020 REPORT

JULY 2020 REPORT

JUNE 2020 REPORT

MAY 2020 REPORT

APRIL 2020 REPORT