Interesting Downtown Facts
- Office vacancy downtown is increasing (remember my blog from 3/22/13...I told you this was going to happen). TOK indicates downtown office vacancy went from 6.4% to 7.4%, while Colliers showed it went from 8.5% to 8.7% (I lump their downtown & downtown periphery together).
- Overall office asking rates are decreasing while Class A asking rates are is increasing. I think this highlights how older buildings are going to have a tougher time fighting for tenants.
- Both reports show our downtown retail vacancy as being super healthy and it probably lies in the 5.5 - 6.5% range. Average asking rates ~$16.50/SF NNN.
- Our downtown industrial market (wait, do we have one?!) also has a low vacancy, probably in the 5.5 - 6.5% range. This number is typically always pretty low because the supply is so low.
Now going forward, what do we see or can we predict anything? Here a couple things I foresee happening:
- Office vacancy downtown will continue to increase and older buildings are going to struggle to attract tenants.
- Retail is going to remain strong as more great places open. Our downtown is truly becoming a destination.
- Increased interest in our downtown is going to continue to spur new activity, and I'm hopeful there will be more residential to our downtown and close in neighborhoods.