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Sublease Space and New Product Push Office Vacancy Level to 12%

CHARLOTTE- Overall vacancies at the end of the fourth quarter were nearly 8%, but the numbers change when factoring in space available for sublease and in buildings still under construction, reports CB Richard Ellis Inc.

By Robert Anthony | Updated on January 24, 2001

CHARLOTTE-The availability of growing sublease office space in the Queen City is bumping up the vacancy rates in the office market. Overall vacancies at the end of the fourth quarter were nearly 8%, but the numbers change to 12% when factoring in space available for sublease and in buildings still under construction, a new CB Richard Ellis Inc. study shows. The brokerage estimates 632,800 sf is available for sublease marketwide.

Local real estate watchers attribute the rising rates to a slowdown in the economy, layoffs at the banks and fewer expansions locally. Fourth quarter absorption was around 536,200 sf versus one million sf absorbed in the third quarter.

Net absorption during all of 2000 was 2.5 million sf, topping the 2.4 million recorded in 1999. A decline in construction activity, coupled with fewer expansions, should tighten the office market, the report states.

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