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Wednesday, April 08, 2009

Vacancies, vacancies, vacancies ... and falling rents

by Calculated Risk on 4/08/2009 04:08:00 PM

Here is a summary of the vacancy reports released over the last few days.

On vacancies:

Malls: From Bloomberg: Vacancies at U.S. Retail Centers Hit 10-Year High, Reis Says

The vacancy rate at neighborhood and community shopping centers rose to 9.5 percent from 8.9 percent the previous quarter and 7.7 percent a year ago ...
Offices: Office Vacancy Rate Rises to 15.2% in Q1 and the WSJ: Companies Sold Office Space at a Fast Pace
The office vacancy rate nationwide rose to 15.2% from 14.5% in the previous quarter, and likely will surpass 19.3% over the next year, according to Reis ...
Apartments: From Reuters: US apartment market worsens with economy--Reis
The national apartment vacancy rate rose to 7.2 percent in the first quarter, up 0.60 percentage points from the prior quarter and 1.1 percentage points from a year earlier ...
Hotels: From HotelNewsNow.com: STR reports U.S. data for week ending 28 March
In year-over-year measurements, the industry’s occupancy fell 12.3 percent to end the week at 56.6 percent...
And on rents:

Offices: From the Telegraph: London's empty office space tops 10m sq ft
The slump is placing immense pressure on rents, which have now fallen 27pc in the past year from an average of £65 per sq ft to £47.50.
From Bloomberg: San Francisco Office Rents Fall Most Since 2001
San Francisco office rents dropped 24 percent in the first quarter from a year earlier ... The average rent fell citywide to $38.80 a square foot from $50.92 ...
From Bloomberg: Manhattan Office Rents Fall Most in Quarter Century
Manhattan office rents ... dropped 6 percent from the fourth quarter to $65.01 a square foot [Note: 24% annual rate] ... The decline is the most in records dating back to 1984 ...
Apartments: From the LA Times: Apartment rents fall in Southern California
... The average rent in Los Angeles County fell almost 4% in 2008 ...
From Reuters: US apartment market worsens with economy--Reis
Asking rents fell by 0.6 percent to $1,046 per month, the largest single-quarter decline since Reis began reporting quarterly performance data in 1999.
Malls: From Bloomberg:
Landlords’ asking rents for regional malls fell 1.2 percent from the prior quarter, the most in five years, said Reis.
Hotels: From HotelNewsNow.com:
[D]aily rate dropped 8.8 percent to finish the week at US$99.77 ... Revenue per available room for the week decreased 20.0 percent to finish at US$56.50