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Wednesday, July 06, 2011

Reis: Office Vacancy Rate flat in Q2 at 17.5 Percent

by Calculated Risk on 7/06/2011 01:32:00 AM

From Reuters: Sluggish economy slows US office market rebound

The U.S. office vacancy rate stood at 17.5 percent at the end of the second quarter, according to Reis. The rate was the same as the first quarter, when vacancies posted the first decline in nearly four years.
The average asking rent rose 0.2 percent to $27.72 per square foot, according to Reis. Factoring in months of free rent and other concessions landlords offer to attract tenants, the so-called effective rent also rose 0.2 percent in the second quarter, to $22.25 per square feet.
Office Vacancy Rate Click on graph for larger image in graph gallery.

This graph shows the office vacancy rate starting in 1991.

Reis is reporting the vacancy rate was at 17.5% in Q2 2011, the same rate as in Q1, and up from 17.4% in Q2 2010. It appears the office vacancy rate might have peaked - and is now moving sideways. It will be a good sign when the vacancy rate starts falling.

Reis should release the Mall and Apartment vacancy rates over the next few days.