First Drop In Business Office Rentals
SOURCE: Wall Street Journal Online
Demand for office space dropped for the first time since the economy emerged from its downturn earlier in the decade, according to first-quarter data from Reis Inc., a New York research firm.
Throughout the nation, the vacancy rate for office space has increased to 12.8% from 12.6% in the previous quarter. During the 2003 downturn after the technology bust, the rate hit 16.9% but it is felt that these levels won't be seen this time.
Even though some areas are hurting, some bright spots can be found. "The energy markets are booming," says Ric Clark, chief executive of office company Brookfield Properties. Houston topped the list of 79 markets that Reis surveys in terms of rent growth, up 3.5% last quarter. Denver, Tulsa and Oklahoma City also fared well.
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Demand for office space dropped for the first time since the economy emerged from its downturn earlier in the decade, according to first-quarter data from Reis Inc., a New York research firm.
Throughout the nation, the vacancy rate for office space has increased to 12.8% from 12.6% in the previous quarter. During the 2003 downturn after the technology bust, the rate hit 16.9% but it is felt that these levels won't be seen this time.
Even though some areas are hurting, some bright spots can be found. "The energy markets are booming," says Ric Clark, chief executive of office company Brookfield Properties. Houston topped the list of 79 markets that Reis surveys in terms of rent growth, up 3.5% last quarter. Denver, Tulsa and Oklahoma City also fared well.
WSJ Subscriber only report »
