Jul 10
6
Office vacancies are up to a 17 year high at 17.4%. Obviously, a quick look at inventory will show you that some buildings have higher occupancy than others, and that the usual factors are at play — price, location, lease terms. That building in poor repair, or with unreasonably high rents and other costs, or in the middle of nowhere, or with security issues, or with a lousy allowance for tenant improvements is going to have a lower occupancy rate (higher vacancy rate) than a building without those problems.
Nevertheless, what is bad news for investors may be great news for new and/or growing business ventures. High vacancy puts potential tenants in a great position to negotiate a favorable lease.
While commercial real estate is not my area of expertise, I will gladly refer interested parties to a qualified licensee.
