Reis on the Q2 office, Mall and apartment vacancy rate


By Calculated risk 7/09/2020 12:18:00

From Reis economist Barbara Bayer Eindhoven Arnhem:

The apartment vacancy rate remained unchanged in the second quarter, however increased by 0. 2% from a year ago of the requirements and effective rents fell by 0. 4% of the quarter after rising in the first quarter.

The office vacancy rate rose by 0. 1%, the occupancy rate has decreased by 977 000 more square feet average office asking rents fell by 0. 1%, while effective rents fell by 0. 4%in the quarter.

Retail vacancy rate remained unchanged in the present quarter to 10. 2%, despite the decline in occupancy of 1. 125 million-square-foot average asking rent fell by 0. 5%, while the average rent decreased by 0. 6%. Shopping Center statistics without finalization.

Commercial real estate statistics listed above represent the average of 79 metro, in addition to retail industry statistics covering 77 subway.

Metro the results vary greatly, although the change is moderate given the state of the pandemic’s closure measures, which have a profound impact on employment losses. More moderate decline in commercial occupancy and rental rates may be due to both the multi-year structure of the leasing of office and retail, as well as the salary protection scheme and the Care Act, allows most tenants to pay their rent.

Conclusions

The second quarter statistics clearly show that property owners are not fully aware of the impact of the pandemic. In fact, the demand for apartments is likely to remain stable in most metro…

The lack of response in the retail sector is particularly striking given that many retailers have turned to e-Commerce sales, even before the coronavirus attacks. Although many retailers have reopened in the past month, many people may not be able to survive the second wave of the virus has weakened economy in much of the South and West.

Finally, the office market might have seen the slightest impact, but this may be due to the 5 to 15 year period the structure of the lease, to maintain the market constant. However, forcing the work from home option drive the epidemic has prompted many office planners to re-consider the future of the office needs that will impact the office market for many years.

Shopping center vacancy rate Click to view a larger image.

This chart shows the Mall vacancy rate starting in 1980(prior to 2000 data year).

For neighborhood and community centers(strip of field), with a vacancy rate of 10. 2% in Q2, unchanged, from 10. 2%in Q1 and is not changed from 10. 2%in Q2 2019.

For the article field, the vacancy rate reached a peak of 11. 1% in 2011 Q3 and the low is 9. 8%, in Q2 2016.

The nearest regional centre vacancy rate has increased significantly, from an already elevated level, but Reis did not release the regional centre vacancy data Q2.

Office vacancy ratesThis graph shows the office vacancy rate starting in 1980(prior to 1999 the data is annual).

Reis reports a vacancy rate of 17. 1%in Q2, from 17. 0%in Q1, and from the 16. 8%in Q2 2019. The office vacancy rate has been mainly moving sideways during the upgrade, but have increased in the past two years. Is likely to further increase as the lease expires.

The apartment vacancy rateThis graph shows the apartment vacancy rate starting in 1980. (Annual growth rate before 1999, each quarter beginning in 1999). Note: Reis is just for large cities.

Reis reports a vacancy rate of 4. 8%in Q2, no change to Q1, and from the 4. 6%in Q2 2019.

The apartment vacancy rate will probably stay quite low, if there is additional relief. However, vacancy rates may increase dramatically, if the eviction moratorium end and have very little extra relief.

All vacancy data provided Reis

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