Signs of Life in Commercial Real Estate Market
Thursday, February 03, 2011
The news statewide was a little rosier, as the statewide office vacancy is down to 20.46% according to a 2010 year-end report by CB Richard Ellis. Suburban vacancy fell 3.78%, from 25.51% to 21.73% over the course of 2010.
2010 downtown activity consisted primarily of renewals and rightsizing by existing tenants, but there are currently large requirements in the market that are expected to select locations early this year, according to the report. If these requirements follow through, 2011 vacancy rates could potentially fall to 2008 levels. After reporting 365,000 square feet of negative absorption in 2009, suburban landlords lowered rental rates in every submarket, resulting in a significant turnaround in 2010: a net positive absorption of 131,340 square feet at year-end.
After reporting 365,000 square feet of negative absorption in 2009, suburban landlords lowered rental rates in every submarket, resulting in a significant turnaround in 2010: a net positive absorption of 131,340 square feet at year-end.
Charts: Source CB Richard Ellis
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