By Rocky Vega
10/07/09 Stockholm, Sweden – Hopefully you’re not betting on a quick turnaround in commercial real estate.
Office vacancies in the United States have just risen to a five-year high due to the poor economy. Businesses that have been slashing jobs are now also ditching the empty office space left behind.
The office vacancy rate has increased from 13.7 percent a year ago to a current rate of 16.5 percent. Over the same period of time, the rates charged for rent have fallen 18.5 percent, the most precipitous decline in 14 years.
More specifics available from Bloomberg fully flesh out the poor outlook for commercial real estate.
Rocky Vega is a regular contributor to The Daily Reckoning. Previously, he was founding publisher of UrbanTurf and RFID Update, which he operated from Brazil, Chile, and Puerto Rico, and associate publisher of FierceFinance. He specialized in direct marketing at MBI, facilitated MIT Sloan School of Management programs, and has been featured on CBS. Vega graduated with honors from Harvard University, where he was on the board of Let’s Go Publications and directed business programs involving McKinsey, Goldman Sachs, and Harvard Business School faculty. He is also enrolled at the Stockholm School of Economics.
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