Search
 

CoreNet Keynoter: Real Estate Market 'Wobbly, But Still Standing'

PHILADELPHIA-During CoreNet Global's Eastern Regional Symposium here, Lloyd Lynford, CEO of Reis Inc., delivered a sobering look at the impact of the economy and unemployment on all segments of commercial real estate nationwide. Neighborhood shopping centers are the one bright light.

By Marita Thomas | Updated on June 25, 2003

PHILADELPHIA-U.S. job losses in six of the past six months has led to negative absorption in the office, industrial and multifamily real estate sectors, according to Lloyd Lynford, CEO of Reis Inc. In his keynote speech at CoreNet Global’s Eastern Regional Symposium here this month, he noted, “we are now 2.1 million jobs below the peak of March 2001.”

The nation’s office market, he said, has been “hammered by losses in total unemployment and the dominant office-using industries. The pain is not confined to just a few markets,” he added, saying “30 of the top 50 office markets suffered negative net absorption.” Effective rents, he said, “fell nationally by 1.7%” in first quarter. The pace of the rise in office vacancy rates, he also noted, “is the most rapid increase on record.”

“Occupancies and effective rents for industrial space will decline through the balance of 2003,” Lynford predicted. “Stabilization, but with virtually no growth, will begin in the industrial sector in 2004.” Members of what he called “the 15% vacancy club” in the industrial market include Philadelphia, Atlanta, Austin, Baltimore, Boston, Richmond, Memphis and Tennessee. Many others, he added, have a vacancy rate of “just under 15%.”

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.