"It's certainly challenging right now," says Eric A. Northbrook, executive directorfor Cushman & Wakefield. "It's challenging for owners, and from a landlord's perspective, there's obviously more supply than there is demand."
The 2Q office report, which covers the six months ending June 30, shows the countywide office vacancy rate up nearly one percentage point from 11.8% at year-end 2007, and a coinciding decline in asking rates, which stand at $2.69 per sf per month compared with $2.73 per sf per month six months ago, whil asking Class A office rental rates of $3.09 per sf per month are down from $3.18 per square foot over the same period.
"In corporate America, they're not making lateral moves," Northbrook says. "I think for the most part, you're seeing a lot of renewals and in some cases shorter term renewals."The recent completion of 639,000 sf of new office space and negative absorption of 102,000 sf during the same period is also contributing to higher vacancy, according to the report.
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