According to data provided by Grubb & Ellis Company, the commercial real estate market may be indicative of the overall trepidation felt about the economy.
The astonishing rate of softening in the in the second quarter has accentuated the fears that the commercial real estate sector may be the next to weigh heavily on the economy’s shaky shoulders.
At the end of the second quarter, the national vacancy rate jumped 120 basis points to end the quarter at 10.7%. This staggering rise was the largest one-quarter gain in the 22-year history of the Grubb & Ellis survey and broke the previous record vacancy rate jump of 70 basis points that was set at the end of the first quarter.
Interestingly enough, for a city in a state mired in debt, the vacancy rate in Los Angeles County was the lowest at 3.1%, while obviously enough, vacancy was the highest in Kalamazoo Michigan at 19.7%.