Commercial

Office Market in Bad Shape

Nearly 16 percent of offices in the U.S. were vacant in the second quarter, the highest rate in four years. Rents fell by the largest amount in seven years, according to research firm Reis Inc.

“It’s bad,” Reis’ Director of Research Victor Calanog says. “It’s decaying and getting worse. Given the depth and magnitude of the recession, you can argue that we are facing a storm of epic proportions and we’re only at the beginning.”

Reis confirmed its previous prediction that the U.S. office vacancy rate will top out at 18.2 percent in 2010 and for rents to continue to fall through 2011. It expects the default rate to peak at 5.2 percent in 2011.

Source: Reuters News, Ilaina Jonas (07/07/2009)

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Elliott Robinson, JD – Associate Broker
Adams Realtors
458 Cherokee Ave. SE
Atlanta, GA 30312
(o) 404-688-1222