Wednesday, October 27, 2010

U.S. Office Leasing Activity in Central Business Districts Up 31.6 Percent


 ORLANDO, FL-- Cushman & Wakefield released third quarter 2010 statistics for the U.S. office market that show leasing activity maket-wide in Orlando decreased 7.1% year-over-year, ending the third quarter at 1.5 million square feet, compared to 1.6 million at the end of the third quarter of 2009.

 Year-to-date leasing activity for U.S. central business districts (CBDs) totaled 45.5 million square feet at the end of the third quarter of 2010, a 31.6 percent increase in activity from the 34.6 million square feet leased at this time last year. 

Of the 31 CBDs tracked by Cushman & Wakefield, 18 saw year-over-year increases in leasing activity.

 The rise in leasing activity led to declines in vacancy in most markets.  After reaching a high of 15.0 percent at the end of first quarter of 2010, the overall U.S. CBD vacancy rate continued its decline for the second consecutive quarter, ending the third quarter at 14.7 percent, down from 14.8 percent at midyear 2010. 

 The overall vacancy rate for Orlando decreased to 18.8 percent at the end of the third quarter of 2010, down from 20.0 percent at the end of the second quarter.

 The overall rental rate for U.S. CBDs remained unchanged quarter-over-quarter.  Rental rates for Orlando fell during the third quarter to $24.11 per square foot, down $0.08 from $24.19 at midyear 2010.

 The year-to-date absorption rate, a measure which indicates the net change in occupied space, was negative 1.25 million square feet at the end of the third quarter, a 96 percent increase in absorption from the negative 32.1 million square feet at the end of the third quarter of 2009.

 Orlando’s absorption rate was negative 25,406 square feet at the end of the third quarter, compared to negative 152,537 at this time last year.

 Contact: Brook Hines, Tel: 407-541-4401, brook.hines@cushwake.com

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