By Walter Molony
Vacancy rates in the office sector are expected to decline from a projected 15.7 percent in the third quarter to 15.5 percent in the third quarter of 2014.
The markets with the lowest office vacancy rates presently (in the third quarter) are Washington, D.C., with a vacancy rate of 9.7 percent; New York City, at 9.8 percent; Little Rock, Ark., 12.1 percent; and Birmingham, Ala., 12.4 percent.
Office rents should increase 2.5 percent this year and 2.8 percent in 2014. Net absorption of office space in the U.S., which includes the leasing of new space coming on the market as well as space in existing properties, is seen at 30.1 million square feet this year and 41.6 million in 2014.
Industrial vacancy rates are likely to fall from 9.3 percent in the third quarter of this year to 8.7 percent in the third quarter of 2014.
The areas with the lowest industrial vacancy rates currently are Orange County, Calif., with a vacancy rate of 3.8 percent; Los Angeles, 4.0 percent; Miami, 5.9 percent; and Seattle at 6.4 percent.