U.S. office vacancy highest level in 3 years

Office vacancy nationwide rose to 12.5 percent in the first quarter, from 11.2 percent at the end of 2008, reaching its highest level in three years, according to first quarter office market statistics released today by Cushman & Wakefield. Office leasing also dropped 39.3 percent in the first quarter to 10.6 million square feet leased, compared to 17.5 percent year-over-year. Because leasing has declined and available space has increased, average asking rents dropped 2.2 percent. The average asking rent is now $39.50 per square foot, compared to $40.37 at the end of 2008. Despite the declines, New York had the third lowest vacancy rate in the country, 9.6 percent at the end of the first quarter. TRD