Office Rents Fall for First Time Since 1993
nytimes.com
June 12, 2001
Office Rents Fall for First Time Since 1993
By BLOOMBERG NEWS
BOSTON, June 11 (Bloomberg News) — Office rents fell for the first time since 1993 in the first quarter as Internet, computer and technology companies laid off workers and gave up space, according to a study.
Rents in the nation's downtowns fell an average of 0.52 percent in the first three months of the year from the end of 2000, according to the national real estate index, which is compiled in San Francisco. In the suburbs, rents fell 0.89 percent.
It was the first drop in rents since the second quarter of 1993, when the real estate market was starting to recover from recession.
"The dot-com meltdown is the main reason for the drop," said Jack Doyle, a spokesman for the index, which is managed by CB Richard Ellis Services Inc., the country's largest property broker.
In the first quarter, the nation's office vacancy rate rose to 9.5 percent, its highest point since 1999.
Rents for warehouse space fell 0.41 percent in the quarter, while they fell 0.38 percent for retail space.
Apartments were the only type of commercial property to show an increase, Mr. Doyle said. Rents for the highest-quality apartments rose 0.465 percent, while apartments aimed at lower-income renters also had a gain, rising 0.66 percent.
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