Tough Times for the Rental Market

 

The pace of deterioration slowed in the third quarter as vacancy rose to 17.1 percent. Despite the relative improvement in the third quarter, the office market is unlikely to embark on a sustained recovery before 2011 and may not reach equilibrium for two or three years after that. -Courtesy of Grubb and Ellis

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The rental vacancy rate rose to 11.1 percent in the third quarter — the highest reported since the Census Bureau began compiling it in 1960 — and up from 9.9 percent in the third quarter of 2008. If you’re looking to move your business or rent office space, this could be the time to find a good deal.

The number of units for rent that are vacant year-round rose from just under 4 million units in third quarter 2008 to 4.6 million units in third quarter 2009. These figures include apartments and single-family homes for rent. The glut of vacant rentals undoubtedly includes for-sale units that could not sell and were eventually placed in the rental market — creating more pressure for the market. – Courtesy of NAHB