Tuesday, July 03, 2012

Office Vacancy Update

Here is the latest information from Reis, via Calculated Risk, on office vacancy.  The national vacancy rate in the second quarter stayed flat at 17.2%.  This paragraph has good and bad news:
Supply growth in the office sector remains muted. During the second quarter of 2012 only 1.606 million square feet of office space were completed, the equivalent of one large office building. This represents the lowest quarterly level on record since Reis began tracking quarterly market data in 1999. Nonetheless, demand for space during the quarter was so weak that even with such little supply being delivered, the level of absorption that we observed during the quarter was insufficient to generate a vacancy rate decline.
The lack of new office supply will eventually result in lower vacancy rates and higher rents.

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