Is the Office Condo Market a Passing Fad?

The continued low interest rate environment, business owners’ desire to own versus rent and financial benefits, have revived the office condominium market. However, the jury is still out on whether the office condo market will continue to thrive long-term, according to a new report issued today by Grubb & Ellis Company (OTC: GBEL), one of the nation’s leading real estate services providers, and PNC Real Estate Finance, a member of The PNC Financial Services Group, Inc.

For the report, entitled “Office Condos: Here to Stay or Gone Tomorrow?” appraisers, developers and brokers in 41 markets throughout the U.S. were surveyed in order to understand the office condo market of today and potential for the future.

Respondents surveyed were split, with many stating that office condos have become a permanent niche in the office market and others stating that the surge in demand will be temporary. Rising interest rates was noted as the most significant risk facing office condo developers over the coming years.