Largest Percentage Point Changes in Office Vacancy Rates – Major U.S. Cities – Fourth Quarter 2006

Alex Carrick -- February 26, 2007

New Orleans (a year-and-a-half after Hurricane Katrina) and Austin had the most dramatic improvements in their office vacancy rates downtown in fourth-quarter 2006, both year over year and quarter to quarter. The level of vacancies remain high in both cities, however (31.9% in New Orleans and 20.5% in Austin). Technology-focused Seattle, along with Minneapolis-St. Paul and Raleigh, also had significant drops in downtown vacancies. In the suburbs, the greatest improvements were recorded in the high-tech cities of Boston and San José. As for markets with increases in vacancy rates, Salt Lake City, Baltimore and Nashville all make the lists with respect to both their downtown and suburban office markets, fourth-quarter 2006 versus third quarter. San Diego is another city with recently rising vacancy rates, especially downtown, but also in the suburbs.