High vacancy in Twin Cities commercial real estate
Vacancy rates for commercial real estate in the Twin Cities remained high in the second quarter of this year.
According to Cassidy Turley, a property management and brokerage firm, vacancy rates in all segments of the commercial market were at record highs in the second quarter.
Dennis Panzer of Cassidy Turley says the market will not rebound until jobs pick up, but even then, improvements will be incremental.
"When jobs grow, it isn't necessarily going to immediately impact the vacancy rate because they have to fill those vacant cubes first and then they'll be ready to grow," he said.
The 20-percent, second-quarter office vacancy rate in the Twin Cities was flat compared to the first three months of the year. But it was up about about 1 percent from the same period last year.
Panzer says an 8 or 9 percent vacancy rate would mean market equilibrium.
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