Our City Online

Messageboard - General Columbus Discussion

NOTE: You are viewing an archived version of the Columbus Underground forums/messageboard. As of 05/22/16 they have been closed to new comments and replies, but will remain accessible for archived searches and reference. For more information CLICK HERE

Downtown Office Vacancy Rates - News & Updates

Home Forums General Columbus Discussion Downtown Office Vacancy Rates – News & Updates

Viewing 15 posts - 1 through 15 (of 65 total)
  • Author
    Posts
  • #82782

    gk
    Member

    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

    #391822

    cc
    Member

    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.

    #391823

    wondermonk
    Member

    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.

    #391824

    gk
    Member

    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.

    #391825

    RoundTowner
    Member

    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.

    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.
    Even though the office rates are up, I did some checking around, Dayton’s downtown vacancy rate is a whopping 37% and residential levels have not increased like Columbus.

    #391826
    Walker Evans
    Walker Evans
    Keymaster

    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.

    #391827
    Walker Evans
    Walker Evans
    Keymaster

    Business Owners Hope To Reverse Downtown Vacancies
    Thursday, February 10, 2011
    WBNS-10TV

    Some of the city’s most notable buildings have high vacancy rates but business owners and real estate agents hope to reverse the downward trend.

    READ MORE: http://www.10tv.com/live/content/local/stories/2011/02/10/story-columbus-downtown-vacancies.html?sid=102

    #391828

    News
    Participant

    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.

    READ MORE: http://www.dispatch.com/live/content/business/stories/2011/07/15/expansions-downtown-fill-vacant-office-space.html?sid=101

    #391829

    cc
    Member
    #391830
    Walker Evans
    Walker Evans
    Keymaster

    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.

    #391831

    cc
    Member

    I think the media mindset is ‘downtown = offices’ and not much else. Hopefully that will change.

    #391832
    Walker Evans
    Walker Evans
    Keymaster

    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.

    #391833

    News
    Participant

    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

    READ MORE: http://www.columbusceo.com/industry_news/commercial_real_estate/article_04a5a7ec-3adc-11e0-881a-00127992bc8b.html

    #391834

    buckeye54
    Participant

    Although it’s interesting to see the breakdown of occupancy rates by the different suburbs,it seems these numbers are pretty out of date unless I’m missing something.

    #391835

    leftovers
    Member

    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.

Viewing 15 posts - 1 through 15 (of 65 total)

The forum ‘General Columbus Discussion’ is closed to new topics and replies.

Subscribe below: