U.S. office building occupancy shows insubstantial growth

New York /
Jul.July 06, 2011 11:49 AM

A microcosm of the national economic recovery as a whole, the U.S. office real estate market picked up 3.7 million more square feet of occupancy in the second quarter of 2011, which marked a fall back from the 5.5 million square feet gained in the first quarter. According to research by Reis, which studies 79 U.S. office markets, cited by the Wall Street Journal there’s still a gap of 126 million square feet of office space that needs to be filled to attain the total occupancy achieved in January 2008. “Relative to the overall inventory, it’s not a large amount,” said Ryan Severino, an economist at Reis. “We are generally trending in the right direction, even if it is a slower, more inconsistent recovery than market participants would like to see.” Not surprisingly, New York and Washington, D.C. are powering what little recovery the market has experienced. D.C. has the lowest office vacancy rate in the nation at 9 percent, and office rents are climbing in New York. Meanwhile vacancy rates in hard-hit Las Vegas and Phoenix remain at 24.9 and 26.5 percent, respectively. [WSJ]


Related Articles

arrow_forward_ios
Rudin Management’s Michael Rudin and Industrious’ Justin Stewart with 32 Sixth Avenue in Tribeca (Rudin, Industrious, Google Maps)
Rudin teams up with Industrious for flex-office play
Rudin teams up with Industrious for flex-office play
About 17.3 percent of Manhattan office space is available for lease, the most in decades. (iStock)
Manhattan office market’s 25% drop is ominous sign for landlords
Manhattan office market’s 25% drop is ominous sign for landlords
Douglas Durst with 1133 Avenue of the Americas (left) and 114 West 47th Street (Google Maps, Getty)
Durst refinances two Midtown buildings with $1.1B CMBS loan
Durst refinances two Midtown buildings with $1.1B CMBS loan
More companies are keeping their offices, but are downsizing those spaces to allow employees to work remotely part-time. (iStock)
Office landlords offer discounts to lock in leases
Office landlords offer discounts to lock in leases
Rudin Management CEO Bill Rudin and 3 Times Square (Getty, FXCollaborative)
Rudin taps Cushman to market 3 Times Square, plans makeover
Rudin taps Cushman to market 3 Times Square, plans makeover
From left: Vornado Realty Trust’s 11 Penn Plaza and Apple’s Tim Cook, The Farley Post Office building and Facebook’s Mark Zuckerberg, Durst Organization’s One Five One and ByteDance CEO Zhang Yiming (Getty, VNO, SOM, Durst)
Big Tech firms led office leasing in 2020
Big Tech firms led office leasing in 2020
The gains accounted for nearly a third of overall job growth. (iStock)
Construction, leisure & hospitality jobs rebounded in March
Construction, leisure & hospitality jobs rebounded in March
317 Lenox Avenue (Google Maps)
David Werner acquiring Harlem office leasehold for $60M
David Werner acquiring Harlem office leasehold for $60M
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...