NEW YORK (CNNMoney.com) -- The pace of rent growth in the nation's office buildings declined slightly in the third quarter, according to report released Thursday in the Wall Street Journal.
Uncertainty about the economy's future and the ongoing credit-market turmoil have damped companies enthusiasm for expansion, the Journal's report said.
According to a survey cited in the report, rent growth in the third quarter was relatively healthy, up 2.4% to $24.17 per square foot from $23.61 in the second quarter. However, the pace set in the first six months of the year was stronger, about 3% per quarter, according to the Journal.
Stunted rent growth combined with a recent slowdown in hiring of "office-based" workers, raises concern about the future of real-estate investment in the sector. Though the slowdown could be an anomaly, the Journal report said.
The office sector has seen continued growth over the last three-and-a-half years but is beginning to show signs of weakness, according to the Journal.
Office-building investors had spent freely before the subprime mortgage debacle began to affect credit markets, financing purchases based on expectations of future earnings rather than present cashflow. If the current decline in rent growth continues, investors could have trouble covering their debts, the Journal reported. 
