Office vacancy rates in 48 central business districts across the nation averaged 13.7% in the third quarter, unchanged from the previous quarter, according to a report published by commercial brokerage Cushman & Wakefield Inc.
A 6.5% vacancy rate made New Haven and Hartford, Conn., the two tightest office markets in the nation. Detroit, Manhattan, Philadelphia and Louisville, Ky., were the only other cities with central business districts with vacancy rates below 10%. Los Angeles' central business district had a 14.7% vacancy rate.
The most overbuilt central business district is in Austin, Tex., where 34% of all office space is empty. San Jose is nearly as bad, with a 30% vacancy factor.
The average vacancy rate in non-central business districts nationwide dropped to 21.3% from 22.2%. Suburban San Francisco, with just 10.4% of its space vacant, had the lowest vacancy factor of all non-central districts. Los Angeles' non-central business district--which includes the Wilshire area, Pasadena and the San Gabriel Valley--was the sixth-lowest non-central market, with a 14.6% vacancy rate.
Boca Raton, Fla., had the highest vacancy rate of all non-central districts, at 36.9%. The suburban Austin area was second, at 36.5%, and Ontario was third, at 32.4%.