|
Although the national economy remains in deep recession, there is reason to celebrate: 2009 has ended! The fledgling economic recovery suggests this year may be better than
the last for the commercial office market.
The troubled labor market has reduced demand for office space dramatically. As of December 2009, Portland’s unemployment rate was 10.7 percent, with nearly 26,800 more jobless residents than one year ago. The tens-of-thousands of jobs that the economy shed early in 2009 will continue to be reflected in the office figures through much of 2010 and early 2011.
During the fourth quarter, 95,055 square feet of negative net absorption was recorded, the fourth consecutive quarter that space has been given back to the market. The vacancy rate remained unchanged from the third quarter at 11.4 percent, still a 150 basis point jump from the one year ago.
Overall, the office market will remain at the bottom of the development and leasing cycle throughout 2010. There is no precedent for what we are beginning to experience—a long and slow recovery from a steep recession. High unemployment will persist as businesses remain paralyzed by the economic uncertainty and recent governmental initiatives.
Contact Crispin Argento at 503.499.0052 for more information.
  Q42009 Office Market Report_EMAIL.pdf
Email Report Link To Your Friend
|