by Calculated Risk on 8/31/2021 10:59:00 AM

Reis reported the office vacancy rate was at 18.5% in Q2, up from 18.2% in Q1, and up from 17.1% in Q2 2020. 

This is the highest vacancy rate for offices since the early '90s (following the S&L crisis).

Click on graph for larger image.

The first graph shows the office vacancy rate starting in 1980 (prior to 1999 the data is annual).

The office vacancy rate was elevated prior to the pandemic, and has moved up significant overly the last several quarters. And will likely increase further as leases expire.

Reis also reported that office effective rents declined in Q2; the fifth consecutive quarter with declining rents.

The second graph shows the regional and strip mall vacancy rate starting in 1980 (prior to 2000 the data is annual).

For Neighborhood and Community malls (strip malls), the vacancy rate was 10.5% in Q2, down from 10.6% in Q1, and up from 10.2% in Q2 2020.

For Regional malls, the vacancy rate was 11.5% in Q2, up from 11.4% in Q1, and up from 9.8% in Q2 2020.

Reis reported that mall effective rents stabilized in Q2, after declining for four consecutive quarters.

All vacancy data courtesy of Reis