gk
columbus, ohio
Login to Send PM
A recently released report shows that downtown vacancy rates rose to their highest level in three years.
http://www.bizjournals.com/columbus/stories/2010/07/26/daily16.html?ana=e_du_pub
PREVIOUS NEWS, HERE: http://www.columbusunderground.com/tag/office-vacancy-rates
cc
Login to Send PM
The article is vague as it mostly is saying that businesses are cutting back and maybe grabbing a few carrots from deals on high caliber spaces. It basically mentions the cause as the economy.
On a sort of related note:
It would be interesting to have a pros and cons of having a downtown office vs offices in more outlying areas.
off the top of my head
cons- parking cost/proximity, rush hour traffic
pros- availability of public transportation, central location
I have no idea if downtown rents are comparable to other areas.
wondermonk
Columbus
Login to Send PM
Wonder what the conversion of all of that vacant office space to residential did to the calculation of vacant office space? Perhaps this vacancy issue is far worse than the 18% referenced in '04, since so much conversion took place since that time. I wonder what the "gross" vacancy rate would be? I doubt anybody calculates this, or at least publishes it, but this would be the occupied residential/commercial units divided by the total available units. Hard to ascertain total vacancy in residential units, but I'll bet some appraisers out there could put their finger on it.
gk
columbus, ohio
Login to Send PM
wondermonk wrote >>
Wonder what the conversion of all of that vacant office space to residential did to the calculation of vacant office space? Perhaps this vacancy issue is far worse than the 18% referenced in '04, since so much conversion took place since that time. I wonder what the "gross" vacancy rate would be? I doubt anybody calculates this, or at least publishes it, but this would be the occupied residential/commercial units divided by the total available units. Hard to ascertain total vacancy in residential units, but I'll bet some appraisers out there could put their finger on it.
That's a good point. I'm sure the conversion from commercial to residential during this period helped lower the vacancy rate. I know the rents have been lowered significantly for all downtown high rises in the past couple years in an attempt to retain or attract tenants.
RoundTowner
Miranova
Login to Send PM
That is true, if prorated to show the amount of Office space available in 2004 vs today, it is probably higher today. I think the real barometer of a healthy downtown would be employment levels then vs now, as well as residential levels.gk wrote >>
wondermonk wrote >>
Wonder what the conversion of all of that vacant office space to residential did to the calculation of vacant office space? Perhaps this vacancy issue is far worse than the 18% referenced in '04, since so much conversion took place since that time. I wonder what the "gross" vacancy rate would be? I doubt anybody calculates this, or at least publishes it, but this would be the occupied residential/commercial units divided by the total available units. Hard to ascertain total vacancy in residential units, but I'll bet some appraisers out there could put their finger on it.That's a good point. I'm sure the conversion from commercial to residential during this period helped lower the vacancy rate. I know the rents have been lowered significantly for all downtown high rises in the past couple years in an attempt to retain or attract tenants.
Walker
The KLD / Downtown
Login to Send PM
So Downtown office vacancy rates are at 15% and city-wide office vacancy rates are at 17%?
Definitely an issue that should be addressed, but I don't think this is a huge hurdle for Downtown. I'm sure a rise in rates was probably expected due to the economic recession.
News
Columbus Underground
Login to Send PM
Expansions Downtown fill vacant office space
Friday, July 15, 2011
BY MARLA MATZER ROSE
THE COLUMBUS DISPATCH
Downtown's office vacancy rate improved in the second quarter, providing a bright spot for an office market that has struggled in recent years.
The rate for Downtown was 17percent at the end of June, a slight improvement from the end of the first quarter and down by more than 10percent from a year earlier, according to data released this week by the Columbus office of commercial real-estate firm CB Richard Ellis.
The rate for suburban offices was stuck at just more than 20percent, where it has been for two years.
Walker
The KLD / Downtown
Login to Send PM
So the national trend over the past decade always has Downtown rates lower than suburban rates... interesting. It seems like rises/spikes in Downtown vacancy rates are always a big news item in the local media here, but higher suburban rates never get as much attention.
Walker
The KLD / Downtown
Login to Send PM
Received this info via email from Capital Crossroads:
Downtown Office Vacancy Report
According to CB Richard Ellis, Downtown ended the year with an office vacancy rate of 16.9%. That is down from 17.4% last quarter and 18.3% at the end of last year. The amount of occupied commercial office space is at a new all-time high: 9.1 million square feet.
The suburban vacancy rate held steady from last quarter at 19.6%. That is down for the year from 21% at the end of 2010.
News
Columbus Underground
Login to Send PM
By the Numbers
Posted: Thursday, February 17, 2011 4:20 pm
By Michelle Davey
Vacancy rates for Downtown office space increased to 19 percent in first quarter 2010, up from 18.9 percent in fourth quarter 2009, according to research from CB Richard Ellis.
Suburban Vacancy Rates:
Bexley/Whitehall: 33.8 percent
Gahanna: 28.7 percent
Airport area: 28.3 percent
Westerville: 28.3 percent
Worthington: 24.9 percent
Upper Arlington: 23.1 percent
Grandview Heights: 22.3 percent
Reynoldsburg: 21.8 percent
Dublin/Northwest: 16.9 percent
Polaris: 14.7 percent
Hilliard: 13.6 percent
Bethel Road: 13.5 percent
Easton: 12 percent
leftovers
Login to Send PM
I think it is common for suburbs to have higher vacancy rates then downtown. To many people downtown is primarily a place to put offices.
What is surprising is how low the vacancy rates are at Easton, Polaris and especially Bethel Rd and Hilliard. I imagine that part of that is due to good marketing and part proximity to other amenities or incentives.
buckeye54
Login to Send PM
Anybody have access to more recent numbers? It would be interesting to see what changes have occurred in the past 2 years and if the suburbs followed downtown's increase in occupancy or if downtowns increase in occupancy was directly related to a decrease in occupancy from the burbs.
News
Columbus Underground
Login to Send PM
Office-vacancy dip too little to spur building
By Steve Wartenberg
The Columbus Dispatch
Sunday April 29, 2012 9:24 AM
The amount of empty office space in central Ohio has slowly been dropping, but it has yet to reach the levels needed to attract new construction, according to local experts. The vacancy rate for Columbus office space was 16.3 percent at the end of the March.
The improved vacancy rate locally has been spurred by the Downtown area, which saw the absorption — or leasing — of 64,000 square feet of previously vacant office space during the first quarter, according to Xceligent.
“I can’t remember the last time the central business district led the way, and now it has done it two quarters in a row, which indicates a trend,” Simpson said, adding that the Easton and Polaris areas are traditionally the area’s strongest.
READ MORE: http://www.dispatch.com/content/stories/business/2012/04/29/office-vacancy-dip-too-little-to-spur-building.html
You must log in to post.
Launched in August 2010, TheMetropreneur.com is a local online resource devoted to small business development and entrepreneurship. Its aim is to tell the stories of Central Ohio's business community, foster regional economic development and assist entrepreneurs with its resource-heavy focus. Click here to visit TheMetropreneur.com.
RSS
Twitter
Facebook
YouTube
