According to Bob Bach, national director, market analysis at Northbrook, IL-based Grubb & Ellis Co., in the second quarter, the U.S. office vacancy rate plunged by 70 basis points to a 3-year low of 15.7 percent. “It was the largest single-quarter decline since the tail-end of the dot-com bubble 5 years ago,” stated Bach in the company’s most recent market update.
Additional information supplied included market data such as a net absorption totaling 22.2 million square feet, its strongest performance in 5 years and more than four times the amount of new space completed during the quarter. “Construction activity remains muted, while asking rental rates for Class-A space are 4.6-percent above their year-ago level. Surging demand is likely to push the vacancy rate below 15 percent by year end,” reported Bach.
This information was supplied by Northbrook, IL-based Grubb & Ellis’ National Director of Market Analysis Bob Bach. To find out more, visit (www.grubb-ellis.com).