For the last two years the beautiful class A office across the street has stood completely empty. It was completed only as the market collapsed and since then has been a good search but vacant 60,000 sq. ft building. I figured sooner or later it was either going to start to lease up or the corporate developer would end up letting it go in foreclosure. In the last 3 months, they have begun to bring in tenants. Not much, just a few, but it’s a start.

Are we finally starting to see some movement in the US office market? If my anecdotal evidence above is correct we may finally be witnessing a slight bit of forward momentum. That would be a welcome relief in an asset class that has been crushed by the recession, except of course for medical office buildings, which have held up very well.

Over my sacred Sunday morning coffee I discovered the latest CoStar report detailing that my observations are indeed true. The report reveals that in the last two quarters in a row the US office market has posted positive net absorption of 5 million and 7 million sq ft respectively. Leasing activity has started to show significant activity and experienced the best quarter since the collapse.

The report went on to note that new office deliveries are at an all time low and that coupled with positive net absorption vacancy rates will begin to move lower. General US office vacancy decreased slightly down to 13.62%.

As the old adage states, ” One swallow does not a summer make”, however the CoStar report is welcome news and bodes well for eventual recovery of the US office market. That’s good because I was getting tired of looking at that empty parking lot.

Obviously, things can go wrong with group investing on real estate. I am not saying they can’t. But, with a group your risk is mitigated, you have people you can turn to when there is a problem and you can as a group buy a piece of real estate of substantial quality and value that you could never accomplish alone. Remember, one of the icons of American real estate The Empire State Building was built by a group of investors, not one man who refused to ask for directions when lost. That is real genius.