USA: CBDs record highest decrease in vacancy rates since 2007
13 Jul, 2011, Frankfurt
• Strongest half-year since 1998
Cushman & Wakefield New York (C&W) has just published the half-yearly results for
the major US office markets. According to the report, in the second quarter the Central
Business Districts (CBDs) recorded the largest quarterly decline in vacancy rates since 2007.
The overall average vacancy rate in CBDs fell to 13.9% (down 0.7 percentage points from the end
of the first quarter 2011). The first half-year shows declining vacancy rates in 71% of the
office markets investigated. The markets with the greatest drops in vacancies include Miami,
Midtown South Manhattan and Washington, D.C. The trigger for this trend was an increase in
leasing activity: leasing volumes for the first half of 2011 are up 43.9% from midyear 2010
levels. With 3.8 million m² in new office leases signed since the start of the year - in the
second quarter alone approximately 2.2 million m² in leases were signed - this half-year has
been the strongest in terms of leasing activity since 1998, when 4.1 million m² were let.
With no new constructions completed in the CBDs in the second quarter, year-to-date construction completions are recorded at a total of approximately 213,700 m². An additional 195,000 m² of new office space is expected to be completed by year-end, with projects underway in Washington, D.C., Houston, Miami and Portland.
Whereas the market posted negative absorption at mid-year 2010, absorption was positive and increasing for the third consecutive quarter: approximately 659.600 m² have been absorbed in the year to date.
Vacancy rates in US CBDs at the end of the first half of 2011
Source: Cushman & Wakefield, New York
The highest average rentals in the first half of 2011
For further information, please contact:
+49 69 50 60 73 - 365