The overall northeast vacancy rate in the 46.4 million-sf market is 7.14%. At the end of 2000, the overall vacancy rate was 4.28%.
The class B vacancy rate reflects many consolidation, a few bankruptcies and companies needing to relocate to class A space to meet more stringent fire codes, according to Grubb & Ellis.
''In the first two quarters of 2002, we will see class B product lease rates decreasing to the $3 to the $3.25 per sf range and then slowly recover,'' the report predict. Class A rates also are softer and will maintain the $4 per sf range through the second quarter of 2002 and begin to increase by year-end, the report adds.
The company expects 291,700 sf will be completed in the first quarter and 712,720 sf will be completed in the second quarter, with little or no space to be completed for the second half of the year.
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