Office Vacancy Rate Reaches 16-year High
04/05/2010
The office vacancy rate rose to 17.2 percent, a level it hasn't reached since 1994. That is a 0.2 percent increase from the previous quarter, and 2 percent higher than a year ago. The market lost nearly 12 million square feet of occupied space.
"As labor markets stabilize, we expect occupancies and rents to require another 12 to 18 months before showing signs of improvement, given typical lags in commercial real estate," said Victor Calanog, Reis's director of research.
New York, the largest office market, had an 11.7 percent vacancy rate, an increase of 0.1 percent. Washington DC now has the lowest vacancy rate of 10.4 percent, while Detroit has the highest, of 26.2 percent. In the third quarter of 2007, the country's office vacancy rate reached a cyclical low of 12.5 percent.
"We expect less of a bloodbath in fundamentals in 2010 versus 2009, but rents will still decline and vacancies will still continue to rise," Calanog said.
Project Announcements
Bosch Expands Lincolnton, North Carolina, Operations
06/02/2023
Little Leaf Farms Establishes McAdoo, Pennsylvania, Greens Production Complex
06/02/2023
Swiss-Based Sulzer Pumps Solutions Plans Easley, South Carolina, Operations
06/01/2023
Finland-Based ADMARES Plans Waycross, Georgia, U.S. Manufacturing Plant
06/01/2023
Toyota Plans Georgetown, Kentucky, Electric Vehicle Operations
06/01/2023
Ranger Design Establishes North Charleston, South Carolina, Operations
05/31/2023
Most Read
-
37th Annual Corporate Survey: Economic Pressures Exerting Greatest Effect on Decision-Makers
Q1 2023
-
Is a Flurry of Fads Shaping Economic Development Policy?
Q2 2023
-
Life Science Conversions in Real Estate
Q2 2023
-
Front Line: Water Supply Increasingly Affecting Location Decisions
Q2 2023
-
EV and Semiconductor Projects Stand Out in States Receiving Area Development’s 18th Annual Shovel Awards
Q2 2023
-
Nearshoring — North America’s Next Factory
Q2 2023
-
First Person: Labor Crunch in the Construction Industry
Q2 2023