Wednesday, August 5, 2009

CTMT predicts office, industrial vacancies will rise

Colliers Turley Martin Tucker (CTMT) has released its office and industrial reports for mid-year, providing a thumbnail sketch of market statistics and trends for the second quarter of 2009 (2Q2009).

Office vacancies held steady in 2Q2009 at 19.4 percent, with the lowest vacancies in the Downtown, Kenwood, and Blue Ash submarkets.

Industrial vacancies reached their highest point since 3Q2003 at 9.5 percent, with the lowest vacancies occurring in the northeast suburbs and in Northern Kentucky.

In both the office and industrial sectors, negative net absorption and falling rentals rates have led to a near halt in speculative construction.

CTMT predicts that closures, downsizing, and consolidations will continue to negatively impact vacancy and absorption rates in both sectors for the near future, a trend that will likely remain until consumer confidence and spending begins to increase.

In the office sector, the report says that those submarkets and regions that do the best job of attracting and retaining talent will be best suited to take advantage of the economic recovery, and industrial development will be attracted to "hot spots" that have improved their infrastructures for freight and intermodal transportation.