Tuesday, July 06, 2010

Reis: U.S. Office Vacancy Rate at 17 year high

by Bill McBride on 7/06/2010 08:23:00 AM

Office Vacancy Rate Click on graph for larger image in new window.

This graph shows the office vacancy rate starting 1991.

Reis is reporting the vacancy rate rose to 17.4% in Q1 2010, up from a revised 17.3% in Q1 (revised up from 17.2%), and up from 16.0% in Q2 2009. The peak following the previous recession was 16.9%.

From Bloomberg Office Vacancy Rate in U.S. Climbs to 17-Year High, Reis Says

The vacancy rate climbed to 17.4 percent from 16 percent a year earlier and 17.3 percent in the first quarter, the New York-based research company said today in a statement. Effective rents, the amount tenants actually pay landlords, fell 5.7 percent from a year earlier and 0.9 percent from the previous three months, according to Reis.
It appears the rate of increases has slowed.

Reis should release the Mall and Apartment vacancy rates over the next few days, and those will probably be at record levels.