Ranking of Office Vacancy Rates in Major U.S. Cities – Central Business District and Suburban – First Quarter 2007

Alex Carrick -- June 1, 2007

Dallas, Atlanta and Detroit are major markets with office vacancy rates of 19%-plus, both downtown and in the suburbs, according to the latest figures (first-quarter 2007) compiled by Property & Portfolio Research (PPR). San José’s central business district (24.7%) also has a high office vacancy rate, but the high-tech sector is making a comeback as shown by year-over-year employment figures and NASDAQ’s improvement versus its trough level. Cities in Ohio — Cleveland, Columbus and Cincinnati — are also suffering, either downtown or in the suburbs, and Minneapolis-St. Paul (19.8%) is another center with a high office vacancy rate downtown. On the plus side, office markets in Washington, Honolulu and New Orleans are tight both downtown and in the suburbs. The low New Orleans’ figures are a result of space taken off the market due to Hurricane Katrina damage. Strong demand for office space in New York, versus available supply, has resulted in a vacancy rate below 10%, assuring good office leasing conditions and high rents.