The Valley’s commercial real estate market continued its downward spiral last quarter with higher vacancy rates in the office, retail and industrial sectors, according to commercial brokerage CB Richard Ellis.
The office vacancy rate rose for the eighth consecutive quarter, ending the second quarter at 23.7 percent, 90 basis points higher than last quarter and 500 basis points higher than one year ago. New office occupancy was a negative 253,029 square feet, with more than half of the Valley’s 25 submarkets reporting in the red. The Southeast Valley, however, experienced the strongest new occupancy, at 94,392 square feet.
The retail vacancy rate rose for the ninth consecutive quarter, ending the second quarter at 10.5 percent, fueled by cutbacks in consumer and business spending. New retail occupancy was a negative 174,276 square feet.
As for industrial space, that sector ended the quarter with a 15.2 percent vacancy rate. All but five of the Valley’s 28 industrial submarkets reported negative new occupancy in the second quarter.