BT Commercial recently released its annual Northern California Regional Overview, which summarizes market trends and forecasts in the Bay Area's office, R&D, warehouse, industrial, retail and investment markets.
According to BT Commercial CEO Mike Kamm, "A number of factors have contributed to the depressed state of the Bay Area's markets in the last two years. The stock market's steep decline, weak demand for American exports, overcapacity in the telecom and internet infrastructure sectors, the events of Sept>11, corporate accounting fraud, threats of terrorist attacks, and potential conflicts in North Korea and Iraq all led to weak business demand."
According to the report, throughout 2002, vacancy increased and asking rates declined in all product sectors and geographic regions. The Bay Area ended the year with and overall vacancy rate of 20.2%, compared to just 4.3% in 2000, and nearly half of all R&D submarkets ended 2002 with a vacancy rate of more than 20%.
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