Office Vacancies Go Up

When we thought it was only an issue with Residential Real Estate, investors are starting to see the full picture! Offices vacancies on the rise. This is to be expected though when you really start looking at the over all cost to the individual. When you are at a loss of income, you shut down. Plain and simple.

Office Rents Flatten, Vacancies Creep Up Rents for U.S. office space have stalled, rising 0.7 percent in the second quarter to $25.16 a square foot, according to real estate research firm Reis.At an annualized rate, rents are growing just 2.9 percent, a fraction of the 10.6 percent seen last year. The vacancy rate rose slightly, up 0.2 percent to 13 percent, the highest rate in more than a year.Although the weakening rental rates and rising vacancies are modest compared with the downturn after the dot.com bust, Reis sees the trend as problematic. With inflation running roughly 1 percent a quarter, rent growth is effectively wiped out. "Landlords are having to concede ground on rents and tenant improvements," says Sam Chandan, Reis's chief economist. "The balance is tipping in the favor of tenants in many markets."Source: Reuters News, Ilaina Jones (07/03/2008)

www.Destin-Florida-Commercial-Real-Estate.com provides more information on current lease rates, commercial property, and other information surrounding the Destin Florida Real Estate Market. Stop by today to see if there is something there that can be benificial to you!