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GlobeSt.com EXCLUSIVE: National Office Markets Improving

NEW YORK CITY-The fourth quarter of 2003 saw office markets improve and the amount of sublease space decline nationwide, according to research from Cushman & Wakefield.

By Barbara Jarvie | Updated on January 22, 2004

NEW YORK CITY-A slow recovery is expected for 2004, says one of Cushman & Wakefield’s top executives. “We are starting to see some moderate signs of improvement in many markets particularly in the CBD’s,” Maria Sicola, senior managing director, Research, tells GlobeSt.com. She also expects more renewals will be announced early in the year. “From a tenant’s perspective, they can sense that the market may truly have bottomed out.”

Nationwide, office markets improved slightly in the fourth quarter of 2003 as vacancy rates decreased in both the downtown and suburban markets, according to Cushman & Wakefield research. “Leasing is on par,” Sicola says, “just not as robust as 2000.” In fact, the level of leasing activity has been relatively consistent over the last seven quarters. She notes that the suburban markets were hit hard and face a more difficult recovery. “I expect no change until 2005.”

Sublease space continues to decline. On a national basis, sublease space represents approximately 18% of overall available sf and is now at it lowest level since year-end 2001 when it was at 108 million sf. And the national downtown vacancy rate (15.2%) and the national suburban vacancy rate (20.8%) both decreased from the third quarter, from 15.5% and 21.2%, respectively.

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