Houston, Texas& has an 8.8% rental vacancy rate (down 25.8% YoY), which is the highest vacancy rate among major cities where the population exceeds 1 million. Rental vacancy in Utah declined 40.7% in 2021. Vacancy rates can also be misleading, as we will discuss below, and can artificially drive up rental costs and create the illusion of unavailable units. Between 2022Q2 and 2022Q3, Vermonts rental vacancies increased 75.0%. If you are an admin, please authenticate by logging in again. Homeowner vacancy in Michigan is 0.5%, with no change from the previous quarter. In 2019, before the pandemic set fire to the commercial real estate market, the national office vacancy rate was around 12%. Jump to a state: AL | AK | AZ | AR | CA | CO | CT | DE | DC | FL | GA | HI | ID | IL | IN | IA | KS | KY | LA | ME | MD | MA | MI | MN | MS | MO | MT | NE | NV | NH | NJ | NM | NY | NC | ND | OH | OK | OR | PA | RI | SC | SD | TN | TX | UT | VT | VA | WA | WV | WI | WY. Homeowner vacancy in Colorado is 0.3%, the same as the previous quarter. . The average U.S. office listing rate stood at $38.04 per square foot, up 1.1% year-over-year Up 80 basis points year-over-year, the national vacancy rate rested at 16.6% Under-construction office space reached 123 million square feet or 1.9% of total stock Office sales totaled $1.9 billion in January, with assets trading at $202 per square foot Net absorption decr Learn More. Homeowner vacancy in South Carolina is 0.8%, up 33.3% from the previous quarter. 8.1% of vacant rental units are in structures built after March 2010. The vacancy rate hit a record-low of 4.5% as of December 18 while the median asking rent growth hit a record high of 11% year-over-year. These 10 Markets Have Rising Commercial Vacancy RatesRemote Work Is Hurting Investors New York City commercial vacancy rates have increased by almost 6% since before the pandemic as remote work slams the sector Oct 05, 2022 6 min read In this article Connecticut has the lowest vacancy rate at 2.0%. Homeowner vacancy in Nevada is 1.1%, up 22.2% from the previous quarter. From 2015 to 2020, West Virginias rental vacancy rate decreased 23.7%. Total office inventory: 48,770,948 SF. Vacancy rates across the office real estate sector in the U.S. increased during the coronavirus pandemic. The Seattle-Tacoma-Bellevue metropolitan area has a 4.6% rental vacancy rate, down 51.1% YoY. From 2015 to 2020, Ohios rental vacancy rate increased 16.9%. Rental vacancy in Connecticut increased 4.44% in 2021. Urban retail tends to boast higher rent levels than other retail, Calanog said. Wyoming rental vacancy is down 2.67% YoY. Cleveland-Elyria has 3.3% rental vacancy, up 175% YoY. Data provided by Commercial Edge Submarket differences in factors such as property mix, degree of accessibility, and availability of amenities influence not only variation in office rent price, but also in vacancy rates. Homeowner vacancy in North Carolina is 0.7%, down 12.5% from the previous quarter. Average asking rent: $7.19 per SF per year, net. Currently, you are using a shared account. Between 2005 and 2015, rental vacancy in Connecticut declined 39.1%. 40.6% of Nevada households do not own a home as of 2022Q3. From 2015 to 2020, Kentuckys rental vacancy rate increased 1.27%. Between 2005 and 2015, rental vacancy in South Dakota declined 34.3%. He works closely with multiple Colliers' business lines including Office Services, Capital Markets, Healthcare, Law Firm Services, Property Management and Occupier Services. The statewide rental vacancy rate in North Dakota is 12.4% as of the end of 2022Q3; thats 107% above the national average. Between 2022Q2 and 2022Q3, Indianas rental vacancy rate increased 1.15%. Rental vacancy in California declined 28.6% in 2021. Based in Chicago, Amanda partners with national and local teams to deliver market intelligence initiatives and provide direction to drive national competitive advantage through research strategy, development and analytics. You need at least a Starter Account to use this feature. The steepest decline in rental vacancy was between 1965 and 1971, when rates declined 37.6% or at an annual rate of 6.27%. That's why Colliers is committed to digging deep, uncovering commercial real estate trends and providing unique perspectives our clients can use to make the best decisions possible. The Los Angeles-Long Beach-Anaheim metropolitan area has a rental vacancy rate of 5.1%, up 4.08% YoY. Visit jpmorgan.com/cb-disclaimer for disclosures and disclaimers related to this content. 29.9% of Louisiana households do not own a home as of 2022Q3. Rental vacancy in Missouri increased 8.11% in 2021. Between 2005 and 2015, rental vacancy in West Virginia declined 23.8%. Between 2022Q2 and 2022Q3, Kentuckys rental vacancies increased 34.2%. But theres nothing new about commercial real estates cyclical nature. Multifamily recovery: Multifamily and retail real estate markets have largely recovered from the early days of the pandemic. Rental vacancy in D.C. declined 23.2% in 2021. From 2015 to 2020, Marylands rental vacancy rate declined 32.9%. Homeowner vacancy in Oklahoma is 1.2%, up 71.4% from the previous quarter. You only have access to basic statistics. Commercial Real Estate Statistics Compared to other major metropolitan areas and against national averages, businesses benefit from the highly competitive Rochester commercial real estate market. Rental vacancy in New York declined 30.8% in 2021. The city's office market has a vacancy rate of 16 percent, while the sublease vacancy rate is 5 percent; both are higher than they were during recent economic crises. Salt Lake City has a 9.3% rental vacancy rate, up 36.8% YoY. 33.5% of Arkansas households do not own a home as of 2022Q3. Net absorption represents the net change in occupied rental space between measurement periods. From 2015 to 2020, Montanas rental vacancy rate increased 20.6%. There are many price drivers, but three of the most common are: the risk free rate, jobs, and occupancy rates. The statewide rental vacancy rate in Illinois is 7.7% as of the end of 2022Q3; thats 28.3% above the national average. South Carolina rental vacancy is down 41.7% YoY. Homeowner vacancy in Tennessee is 0.8%, up 14.3% from the previous quarter. Highlights. Commercial Metro Market Reports Q3 2022. From 2015 to 2020, vacancy increased 19.2%. The statewide rental vacancy rate in Texas is 8.1% as of the end of 2022Q3; thats 35.0% above the national average. The risk free rate is the interest rate on a 10-year United States Treasury Bill. The vacancy rates of shopping center real estate in the United States varied between different cities as of the second quarter of 2020 and 2021. The lowest rental vacancy rate of 2021 was 5.6% in the 4th financial quarter. From 2015 to 2020, Mississippis rental vacancy rate increased 22.1%. 36.2% of Connecticut households do not own a home as of 2022Q3. 26.1% of Minnesota households do not own a home as of 2022Q3. All the way from investments in last-mile distribution complexes to drones. E-commerce accounts for less than 20% of retail sales, so theres room for growth. E-commerce will likely serve as a tailwind for the logistics industryand industrial warehouse and distribution propertiesfor at least 10 years, Calanog said. Between 2022Q2 and 2022Q3, Utahs rental vacancies increased 6.38%. From 2015 to 2020, South Carolinas rental vacancy rate increased 1.74%. For example, people still want to shop at a grocery store for certain items, pick up prescriptions, get a haircut or grab coffee. Homeowner vacancy in South Dakota is. Between 2022Q2 and 2022Q3, Nevadas rental vacancies increased 22.9%. 0.8%, up 60.0% from the previous quarter. "The vacancy rate will likely bounce in the 0.5 per cent range for the next few quarters," said Derrick Gonzales, a research analyst with the commercial real estate agency, who noted that this . Louisiana rental vacancy is up 6.85% YoY. Certain types of buildings or rental unit structures are more likely to have high vacancy rates. The . Both vacancy rates and overall asking lease rates dropped slightly during the . Commercial property vacancy rates Commercial property vacancy rates, news, insights and market data. Learn more about our commercial real estate solutions: Global opportunities mean global challenges. This has led to a drop in direct asking rates, which now average $34.49 / sq ft for Class A space, $29.31 for Class B space, and $25 for Class C properties. From 2015 to 2020, Texass rental vacancy rate declined 8.79%. From 2015 to 2020, rental vacancy increased 13.0%. Homeowner vacancy in Maine is 0.8%, up 300% from the previous quarter. The retail sector in some residential neighborhoods in the outer boroughs, meanwhile, have fared much better than those in Manhattan, the report said. The Burlington-South Burlington metropolitan area has a 6.6% multifamily rental vacancy rate in 2022Q3, down 10.8% YoY. Between 2005 and 2015, rental vacancy in New Jersey declined 19.7%. Prior to joining Colliers, Stephen was a Research Director with CoStar based in Washington D.C. His career history also includes eight years as Director of U.S. Office Research with Deutsche Asset Management and six years as Head of Research with Newmark Knight Frank in London, U.K. At Colliers, Stephen is responsible for all aspects of U.S. National Office research including authoring quarterly reports, press interviews and multi-market analysis. Rental vacancy in Michigan decreased 18.5% in 2021. Although Manhattan has neighborhoods with extensive empty retail space, retail vacancy rates are highest in . 10.4% of year-round vacancies are empty but have been rented or sold. The national rate of homeownership is 66.0% as of 2022 Q3. The pandemics economic impact largely mimicked that of a natural disaster on a national scale, but the economy bounced back over several quarters. Between 2005 and 2015, rental vacancy in Indiana declined 24.1%. Charleston-North Charleston-Summerville has a rental vacancy rate of 6.9%, down 30.3% YoY. Owner-occupied homes see lower vacancy rates on average than rentals do. Rental vacancy in Florida declined 21.7% in 2021. From 2010 to 2020, housing vacancies declined 57.7%. Homeowner vacancy in North Dakota is 0.7%, down 46.2% from the previous quarter. 10.6% of vacant housing units are second homes. Rental vacancy in Louisiana increased 15.9% in 2021. A paid subscription is required for full access. Between 2005 and 2015, rental vacancy in Colorado declined 71.2%. Efficiencies and 1-bedroom apartments make up 4.6% of rental vacancies. The Wilmington-Camden-Philadelphia metropolitan area has an average rental vacancy rate of 4.6%, up 76.9% YoY. Highrise structures with many small units built after March 2010 are the most likely to have high rental vacancy rates. Office properties are arguably the weakest sector in a commercial real estate market, most definitely in downtown Chicago, where the office vacancy rate hit a fresh high of 21.4% at the end of . Houston-The Woodlands-Sugar Land has a vacancy rate of 8.8%, up 10.0% YoY. The statewide rental vacancy rate in Massachusetts is 3.0% as of the end of 2022Q3; thats 50.0% below the national average. In this case, gross potential income equals $1,000,000 (100,000 SF x $10 PSF). Between 2022Q2 and 2022Q3, South Carolinas rental vacancies declined 33.3%. The 2023 commercial real estate outlook indicates there may be challenges ahead. From 2015 to 2020, Iowas rental vacancy rate increased 13.2%. Last Updated: Albuquerque has a vacancy rate of 5.2%, down 5.45% YoY. The Cheyanne metropolitan area had a multifamily rental vacancy rate of 2.9% in 2022Q1, up 93.3% YoY. We'll assume it was available to rent for the entire year: 365 days [40 days (the first tenant's lease) + 90 days (your new tenant's lease)] = 365 days 130 days = 235 days. Total industrial inventory: 335,539,734 SF. Amanda possesses comprehensive experience in both database management and trend analysis. 24.4% of Michigan households do not own a home as of 2022Q3. Allentown-Bethlehem has 6.4% rental vacancy, up 113.3% YoY. Between 2022Q2 and 2022Q3, Ohios rental vacancies declined 9.26%. California rental vacancy is up 2.50% YoY. The statewide rental vacancy rate in Maryland is 4.2% as of the end of 2022Q3; thats 30.0% below the national average. Interest rates will remain low throughout 2021. . Al Brooks, Head of Commercial Real Estate, Commercial Banking. Between 2005 and 2015, rental vacancy in Iowa declined 44.1%. A 2023 recession would likely be a more traditional one. The statewide rental vacancy rate in Colorado is 5.0% as of the end of 2022Q3; thats 16.7% below the national average. Prior to joining Colliers, I was a Compliance Specialist at Orlando-based FBC Mortgage, where I provided guidance to originators regarding disclosures and assistance in the interpretation of federal, state, and industry regulations. Between 2022Q2 and 2022Q3, Alaskas rental vacancies increased 51.2% from a rate of 4.1%. Market Reports Feb 6, 2023. It is, however, important to note that none of the regions across the U.S. have seen vacancy rates dip below their pre-pandemic Q4 2019 levels, according to Moodys Analytics. Rental vacancy in Kansas declined 46.6% in 2021. Western states have a rental vacancy rate of 4.7%, up 6.82% YoY. The retail vacancy rate in Greenpoint and. New York rental vacancy is down 15.7% YoY. The statewide rental vacancy rate in Ohio is 4.9% as of the end of 2022Q3; thats 18.3% below the national average. Homeowner vacancy in Indiana is 0.5%, up 66.7% from the previous quarter. The statewide rental vacancy rate in Utah is 5.0% as of the end of 2022Q3; thats 16.7% below the national average. Between 2022Q2 and 2022Q3, Virginias rental vacancies decreased 26.7%. I was responsible for the collection, maintenance, and preparation of data across all property types required for writing quarterly statistical reports, graphs, and charts. (July 13, 2021). Units with monthly rent prices of $2,000 or more have 9.0% vacancy, a 0.00% change YoY. But both cities also entered the pandemic with much higher vacancy. Massachusetts rental vacancy is up 42.9% YoY. The Tampa-St. Petersburg-Clearwater metropolitan area rental vacancy rate is 9.7%, up 38.6% YoY. 25.6% of South Carolina households do not own a home as of 2022Q3. From 2015 to 2020, Idahos rental vacancy rate declined 32.2%. Between 2022Q2 and 2022Q3, Wisconsins rental vacancies increased 40.6%. 33.9% of Virginia households do not own a home as of 2022Q3. 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