Saturday, April 10, 2010

Office Vacancy Rate hits 17.7% in San Francisco

by Bill McBride on 4/10/2010 08:59:00 AM

The following article makes a couple of key points: 1) office vacancy rates are still rising as leases expire, and 2) new construction has essentially stopped - and there will probably be little new office construction for a number of years. That is also what the Architecture Billings Index, a leading indicator for commercial real estate (CRE) suggests ...

From Robert Selna at the San Francisco Chronicle: Office vacancy rate rises in San Francisco

The 13 million square feet of available space in the first quarter of 2010 translates to a 17.7 percent office vacancy rate, up from 14.7 percent a year ago and nearly one percentage point from the previous quarter ending in December, according to data released Friday by the real estate firm Jones Lang LaSalle.
Boston's commercial district has a vacancy rate of 18.4 percent and Chicago's is 16.3 percent, according to Jones Lang LaSalle.
[Colin Yasukochi, research director at Jones Lang LaSalle] said that only one office building, located in Mission Bay, is currently under construction.