City Office Vacancy Rate Expected to Fall Slightly / Says Wiggin Properties
Tipton, David, THE JOURNAL RECORD
While the downtown vacancy rate is expected to drop from 26.5 percent to 24.3 percent within that 12 month period, suburban office vacancies will climb from 24.7 percent to 25.5 percent by January 1987, according to the report.
The projections were made assuming that construction of no more office space begins before January 1987 and that 250,000 square feet of office space is leased net of additional vacancies during thenext 12 months.
Available office space is expected to rise from the present level of 3.5 million square feet to 3.6 million square feet by July of this year. That figure is expected to drop back down to 3.5 million by January.
According to the report, 220,000 square feet of office space has been leased during the past six months in buildings which have been occupied since January 1982. The majority of the leases have been signed for Leadership Square, Citizens Plaza and Central Park Two.
"As usual, this activity reflected an upgrading by tenants in a soft market," the report said. "The net absorption in all buildings during this same six-month period was only 40,000 square feet."
Compared to the July 1985 Wiggin report, total existing office space citywide fell from 25.9 percent to 25.4 percent in January.
In addition, the downtown vacany rate went from 27.1 percent in July 1985 to 26.5 percent in January.
While the amount of available suburban office space fell from 25.1 percent to 24.7 percent from July to January, the only actual declines were reported for office buildings located in the northwest and in the Lincoln Blvd. …