Thursday, April 02, 2009

Office Vacancy Rate Rises to 15.2% in Q1

by Bill McBride on 4/02/2009 09:09:00 PM

From the WSJ: Companies Sold Office Space at a Fast Pace

Companies struggling to cut costs dumped a near-record 25 million square feet of office space in the first quarter, driving vacancy up and rents down, according to data to be released today by Reis Inc.
...
The office vacancy rate nationwide rose to 15.2% from 14.5% in the previous quarter, and likely will surpass 19.3% over the next year, according to Reis, a New York firm that tracks commercial property. That would put the vacancy rate above the level during the real-estate bust of the early 1990s, the worst on record.
Office Vacancy Rate Click on graph for larger image in new window.

This graph shows the office vacancy rate starting 1991.

A little over one month ago, REIS was forecasting office vacancy rates would reach 17.6% in 2010. Now they are forecasting 19.3%!