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USA Office vacancy rate is up, but how much?

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A couple of different reports have come out this month related to the 3rd Quarter office vacancy rate nationwide. They do not match.  The vacancy rate according to these reports is between 13% and 16.5%. Quite a big difference.  Neither noted whether sublease space was considered or what class of space was included. Bottom line is that you can't always take these number at face value.

From the Money Times, "According to real estate research firm Reis Inc, the U.S. office vacancy rate touched a five-year high in the third quarter. The national vacancy rate stood at 16.5 percent, 0.6 percentage higher than the previous quarter.

The dismal vacancy rate
The present vacancy rate is 2.3 percentage points higher than the vacancy rate in the comparative period last year. Thus the gains made during the commercial real estate boom have been washed away.

"So in seven quarters, the current recession has almost undone all additions to occupied space that occurred during the years when office rents peaked," Calanog said.

The office vacancy rate increased in 72 of the 79 primary metropolitan areas, up from 66 primary metropolitan areas that witnessed an increase in the vacancy rate last quarter."

From CoStar "Vacancy is continuing to rise in most major office markets around the nation. According to a third quarter market report produced by CoStar, overall vacancy in the United State climbed to 13 percent, which was an increase of 40 basis points from the second quarter’s vacancy of 12.6 percent.

Year-to-date statistics showed that the nation has seen negative absorption of 48.2 million square feet with 38 of the 63 major office markets tracked by CoStar having posted negative absorption during the third quarter. CoStar also reported central business district vacancy climbed to 11.1 percent from 10.7 percent in the second quarter. Suburban vacancy also grew to 13.6 percent, up from 13.2 percent in the second quarter."

 

Office Rental , Office Space , Office Vacancy Rate

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