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Offices: Rising Vacancies, Falling Rents

By Anonymous

Rising vacancies. Falling rents. Negative absorption. The trend continues ...

From the Baltimore Business Journal: D.C. area office vacancies reach 12.3%

The Washington, D.C., area?s commercial real estate market saw a net absorption of negative 726,100 square feet in the second quarter, the third straight quarter of negative absorption ... the Washington region?s office vacancy rate has now reached 12.3 percent.

... "we are entering into a period of steady rent declines" [said Kevin Thorpe, director of market research for Cassidy & Pinkard Colliers]
emphasis added

From Reuters: Manhattan office vacancy hits 15-year high-report

The vacancy rate for top quality Midtown Manhattan office buildings reached its highest level in 15 years and asking rents fell nearly 11 percent in the second quarter, a Jones Lang LaSalle (JLL.N) report said.

Click on graph for larger image in new window.

For Q1, REIS reported the office vacancy rate nationwide rose to 15.2% from 14.5% in Q4 2008.

This graph shows the office vacancy rate starting 1991.

The Q2 data should be released this week.

Full post as published by Calculated Risk on July 05, 2009 (boomark / email).