Commercial real estate vacancies at all-time high

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Commercial real estate vacancy rates are at an all-time high, according to a Hoff and Leigh real estate market report that tracks local properties for sale.

The report says Class B office building vacancy rates are hovering around 38 percent. Class A vacancy rates are at about 25 percent.

The historical norm for Class A vacancy is about 12 percent.

As vacancy rates rise, rents have fallen commensurately, Tim Leigh said.

“Class B buildings are the normal, small office building (less than 40,000 square feet) that most would be involved with,” Leigh wrote.

In the report, Leigh said the 40,000-square-foot property at 805 N. Murray, a former credit union branch, is priced at about $3,500 a month.

“That’s nuts, but true,” he said. “That’s the condition of our market.”

One Response to Commercial real estate vacancies at all-time high

  1. hey, just say NO when it comes to cheap rent !
    Tell these greedy tenants that you’re not gonna let then get rich offa you, by gawd .
    Tell’m to that their 6 or 8 bucks a foot gross lease w/laughable escalators & put’m where the sun don’t shine cuz I swear, i’d rather let this building get forclosed on than pay the taxes, insurance, maintenance, stormwater fees, trash collection, utilities and anything eles anyone wants to charge to keep this place runnin’ for an ungrateful bottomfeeder like you !

    No, really …… you’d give me 6 or 8 bucks a foot, gross ? ………… when do ya wanna move in ?

    Like it'll matter .....
    August 17, 2009 at 3:25 pm