Search
 

Vacancy Rates to Peak by Year End

BOSTON-A study of 54 markets nationwide conducted by Portfolio and Property Research, a locally based real estate research group, indicates that the vacancy rates in most sectors of the commercial real estate market should peak by the end of this year.

By Naomi Grossman | Updated on April 29, 2002

BOSTON-The vacancy rates in most sectors of the commercial real estate market should peak by the end of this year, according to a study of 54 markets nationwide conducted by Portfolio and Property Research, a locally based real estate research group.

The study notes “the magnitude and velocity of the recent rise in vacancy rates has certainly varied across markets and property types.” But it adds that “while further softening is expected, vacancies should begin to correct as the economy continues to recover and demand growth rebounds. In addition, supply levels have been much more disciplined in this cycle, which will help prevent vacancies from reaching peak levels experienced in the last cycle.”

“We should see things starting to recover by 2003,” Nancy Chesley, real estate economist and product manager at PPR, tells GlobeSt.com. Chesley points out that construction has begun to shut down in most markets and demand is slowly recovering as the economy is beginning to show signs of improvements and lay offs are beginning to wrap up. In general, it takes about six months for the economic recovery to ripple through the real estate market and Chesley says that this case is no exception.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.