U.S. Office Market Shows Further Signs of Weakening as Economy Contracts
For the fourth consecutive quarter, the U.S. office market gave back space during the fourth quarter, helping to push the national vacancy rate up for the fifth consecutive three-month period. A modest supply of office development also ocurred during the fourth quarter, putting upward pressure on the national vacancy rate. Rents accelerated downward as weakness in the general economy became more apparent with downtown lease rates (in particular) falling sharply. Looking forward, office space fundamentals are sure to weaken substantially as tenants pull back and construction continues, at least through the end of 2009. Click here to read the full article.