The third quarter was a rough road for the office market. Negative net absorption\u201419 million square feet returned to the market\u2014along with 11.5 million square feet in completions, shot the sector\u2019s vacancy rate from 13.1 percent in the second quarter to 13.7 percent in the third quarter, according to Reis Inc. The vacancy rate, presented during the firm\u2019s third-quarter-2008 briefing, represents an upsurge of 60 basis points, the office market\u2019s heftiest quarter-over-quarter increase since the second quarter of 2002.Just 10 out of 79 primary office markets saw their occupancy rates improve during the third quarter, a considerable drop-off from 45 markets in 2007\u2019s third quarter. Detroit, marred by a challenging local economy, notched the highest vacancy rate, up 300 basis points from the same period a year ago to 23.9 percent. The top five markets by third-quarter vacancy rates were New York City (6.2 percent), the District of Columbia (8.1 percent), San Francisco (9.9 percent), Seattle (10 percent) and Nashville (10 percent).Meanwhile, the top five markets by one-year rent growth were Boston (13 percent), Houston (10.7 percent), New York City (9.1 percent), Los Angeles (9.1 percent) and Miami (8.4 percent). Reis Inc. chief economist Sam Chandan noted on the Webcast, however, that not one of the 50 largest U.S. markets is forecast to grow effective rents next year. \u201cOver a five-year time horizon, markets will return to modest growth in gross revenue, but these gains will fall short of increases in expenses,\u201d he said. \u201cThe constraints on financing and the gloomier outlook for office space demand continue to weigh on prices in the sector.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
The third quarter was a rough road for the office market. Negative net absorption\u201419 million square feet returned to the market\u2014along with 11.5 million square feet in completions, shot the sector\u2019s vacancy rate from 13.1 percent in the second quarter to 13.7 percent in the third quarter, according to Reis Inc. The vacancy rate, presented…<\/p>\n","protected":false},"author":1314,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[37301],"tags":[],"class_list":["post-1003916036","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"acf":[],"yoast_head":"\n