Dear informationforme,
The indications are, that the demand for rentals is higher than the demand for commercial office space.
This is based on vacancy and occupancy rates as well as factoring in typical perspectives of supply and demand.
VACANCY RATES:
- Industrial Real Estate: 8.09% with 8.39% availability. (no new construction at the end of 2005)
- Office Real Estate: 12.48% vacancy with 12.60% availability. 105,000 SF under construction.
- Rental Unit Vacancy: 3.7% Since the end of the first quarter of 2005, there has been an increase in construction of rental units at 219,883 units.
+1 Unit detached rentals: 101,782
+1 Unit attached rentals: 69,520
+2 unit rentals: 10,388
+3 or 4 unit rentals: 7,748
+5 to 9 unit rentals: 6,850
+10 to 19 unit rentals: 9,725
+ 20 or more unit rentals: 13,189
+Mobile home rental units: 681
Contributing Factors:
1. There is an increase in HUD home demand.
2. Since the publication of these statistics, the township of Upper Darby has teamed with surrounding townships to form a program of area economic redevelopment and expansion. This is attracting and has increased construction and reconstruction of industrial real estate, and is attracting more business.
3. Supply and demand for rental and housing units always correlate to the development of business. For example: People tend to move into areas where there is new development of business and an increase in demand for jobs. So housing demand will always slightly edge out the demand for office space during periods of economic growth. During period of economic decline, people tend to move away, hence the demand for housing will slightly lag behind the demand for office space. (though both will be in decline together)
All data is provided from the U.S. Census Bureau.
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YOUR PAYMENT AND BONUS IF ANY MAY BE TAX DEDUCTIBLE
Edward M. Johnson
