Sales continue to be down while leasing remains the alternative choice for users. New credit/financing is still difficult to obtain especially with the 30% equity requirement.
In all industry classes, free rent and other concessions are being offered by landlords and in all likelihood will increase in the next year if the economy doesn't make a change. Landlords of spec space are also unable to move rents and continue to focus on concessions to increase occupancy. For buyers with good credit, now is a good time to buy good quality assets at prices not seen since the early 1990s.
Industria Marketl:
This region is not seeing over-building as many other markets across the country are seeing, which in turn means vacancy levels are staying stable. Usually this market is run by automotive and construction, which are seeing downturns, whereas aerospace continue to be at normal capacity. Many of the planned construction has been put on hold, however 460,000 square feet is currently under construction, and is taking place in the southeast submarket.
Overall vacancy for industrial in the region is 10.3% and average asking rent is $3.49/sq ft NNN.
Downtown: 9.0% $2.19/sq ft
Northeast: 9.3% $3.34/sq ft
Northwest: 17.7% $3.98/sq ft
Southcentral: 8.9% $4.84/sq ft
Southeast: 10.4% $4.81/sq ft
Southwest: 10.8% $5.38/sq ft
Office Market:
Vacancy in the region increased only 42 basis points since last quarter (negative absorption) for the first time since 2003. Some questions remain regarding the final impact of PNC consolidates in the National City Bank Headquarters. 100,000 square feet of Class A space is under construction in the east submarket.
Overall vacancy for office in the region is 19.2% (Class A: 14.4%; Class B: 21.2%; Class C: 24.9%)
Downtown: 20.2%
East: 15.5%
South: 19.4%
Southwest: 16.5%
West: 22.8%
0 comments:
Post a Comment