Magazine article Mortgage Banking

Office Markets Show Flat Demand and Vacancies. (Commercial)

Magazine article Mortgage Banking

Office Markets Show Flat Demand and Vacancies. (Commercial)

Article excerpt

BETHESDA, MARYLAND--BASED COSTAR Group Inc. reports there appears to be an inverse correlation between the Dow Jones Industrial Average and the national office vacancy rate: The lower the Dow falls, the higher office vacancy climbs. At the end of the second quarter, approximately 14.3 percent of the 5.3 billion square feet of office space tracked by CoStar nationwide stood vacant, up from 13.5 percent at the end of the first quarter. The average office vacancy rate has risen every quarter since the fourth quarter of 2000.

The increase in the amount of available space was fueled by more than 25.4 million square feet of new space completed during the quarter combined with the negative 23.7 million square feet of net absorption. With landlords reporting flat demand for additional space from tenants, they are lowering rents in an attempt to drum up business. The average asking rental rate for office space being marketed dropped to $23. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.