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.”