Office-Space Demand Increase a Positive Sign for Economy
(October 6, 2004) -- America's office property market showed further promise of an upswing in the third quarter, as firms occupied more space than in any quarter in nearly four years, according to a new study by real estate research firm Reis Inc.
The national vacancy rate dropped from 16.8 percent in the second quarter to 16.6 percent, while asking rents were unchanged at $24.09 per square foot a year. Absorption, meanwhile, rose from 7.6 million square feet to 11.2 million square feet. That's a good sign for the economy, as employers tend to lease more space when they are adding staff and vacate space when they're slashing payroll.
Looking at various geographic areas, the District of Columbia continued to be the tightest market in the nation with a 7.7-percent vacancy rate, followed by San Bernardino, Calif. Dallas, meanwhile, still had the highest office-vacancy rate in the United States at 26.1 percent.
Source: Wall Street Journal (10/06/04); Chittum, Ryan
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