Posted Jul 6th 2010 4:00PM by Connie Madon
Filed under: Money and Finance Today
Reis Inc. tracks office space. Reis reported that 1.8 million square feet of office space were lost in the recent quarter, increasing the office vacancy rate to 17.4%.
Here are some relevant data in the Reis study:
• Since 2008, occupied office space across 82 metropolitan areas has dropped by 133 million square feet - the size of 2,300 football fields.
• Landlords have been reducing rents for seven straight quarters. During the second quarter, rent space sold for $22.01 per square foot, down from $25.00 per square foot in the second quarter of 2008.
• Washington, DC has the lowest vacancy rate at 10%, while Las Vegas, Phoenix and Detroit are highest at 25%
• New York City, the largest office market, has a vacancy rate of 11.7%.
LoopNet provided the following graphs to illustrate the lease rates in several selected cities. As the economy continues to slowly recover and businesses contemplate more layoffs, businesses must also reduce their leased space requirements. There are positive signs for certain markets such as Dallas Tx. I have also included several graphs illustrating the retail lease rate trends for several states hit hard by the downturn.
On Monday, I will be post a summary of the economic activity for June 2010.
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