Cushman & Wakefield office marketbeat: 3Q 2015 El Paso

​​​EL PASO – The El Paso
Borderplex economy continued to expand during third quarter 2015, according to Cushman & Wakefield’s Third Quarter 2015 Marketbeat.

Employment is still climbing upward boosting the region’s
business-cycle index. The region’s unemployment rate has dropped since this
time last year and remains low at 5.3 percent.

El Paso’s office market recorded a decline in vacancy and
net absorption while rents increased. The overall office vacancy rate measured
6.7 percent as of 3Q 2015, a drop from 7.3 percent reported in 2Q 2015.

The El Paso office market has experienced a maturation. With
virtually no new construction in the past half dozen years and the introduction
of some exciting iconic office redevelopments in the same timeframe, it is
expected that new Class A buildings will soon emerge.

In the CBD alone, the inventory is expected to increase by
over 4 percent in the next 18 months.

Medical Office Buildings represent the next
major segment of the market and will impact the inventory with Class A space
accounting for upwards of 2 percent citywide.