Companies expand, U.S. office vacancy hits lowest level in two years

TRD New York /
Jul.July 08, 2011 09:13 AM

Office building vacancy in U.S. central business districts decreased to the lowest level in two years as companies expanded, according to a report by Cushman & Wakefield, reported by Bloomberg News.

“It’s a reflection of the pent-up demand in the market,” Maria Sicola, head of Americas research at Cushman, told Bloomberg News. “Economic growth has been slow, but we are growing.”

The average vacancy rate in the second quarter was 13.9 percent, Cushman said, down from 14.6 percent in the first quarter and 14.8 percent for the same period a year ago. The rate last was lower in mid-2009, when it was 13.7 percent, the New York-based brokerage said.

U.S. companies hired twice as many employees as was predicted, according to data from ADP Employer Services. Since January, leases for 41.8 million square feet have been signed, making it the most robust half-year in 13 years.

Manhattan, Chicago and San Francisco all experienced second-quarter growth. Midtown Manhattan maintained the lowest vacancy rates, 7.2 percent, and highest average rents, $63.35 per square foot, in the 30 central business districts surveyed.

Last month, it was reported that at least eight high-profile financial institutions are actively seeking large blocks of space in Manhattan, of at least 500,000 square feet each. Firms looking include Bank of America, UBS AG and investment bank Jeffries Group. [Bloomberg]

Related Articles

The Coca-Cola building at 711 5th Avenue (Credit: Google Maps and iStock)

Flipped off: The inside story of Coca-Cola’s botched building sale

Vineyard Vines HQ sold in Stamford, Avon inks Rye deal & more Westchester and Fairfield real estate news

Real estate tech investor Fifth Wall launches $500M fund

New heights for Everest as insurer inks North Jersey’s largest lease deal of 2019

This Westchester development site just hit the market seeking nearly $30M

Do you work for the city? Then your cubicle is about to get smaller.

(Credit: iStock)

Milan’s rising rent, office space shortage sparks investing spree

Somerville moves forward with 31-acre transit village, Woodcliff Lake office property sold for $36M & more North Jersey real estate news