by Calculated Risk on 7/25/2008 06:46:00 PM

From Jon Lansner at the O.C. Register: Tenant shortage plagues 25% of O.C.’s office towers

Studley Inc. reports that 25.1% of the office space in O.C.’s most prized buildings was available for rent during the second quarter — a rate not seen since the second quarter of 2002 in the last recession. A year ago, it was 18%.

The real estate services firm, which represents tenants, blamed a flood of space coming on line from “mistimed construction” and sublet supply from companies, particularly in the mortgage sector, that have closed up shop and vacated their offices.

See through buildings!

“You drive through Orange County and you see all these buildings with no people in them,” says Caitlin Zimmer, Studley’s research director. “And it has not plateaued."

The CRE slump is here - and this will significantly impact construction related employment and non-residential investment in structures.