Vacancy Rates as Market Indicators for Investment

One quick test to determine which markets to invest in is to review vacancy rates vs the national averages.  Understanding  what’s behind the numbers and drivers for the low vacancy rates is very important to your decision process. This is also good starting point to prioritizing the markets you may want to invest in.

Lowest Vacancy Rates, Q1, 2010

                                  Vacancy Rate      National Average

Office, New York                8.4%                 16.9%
 
Industrial, Los Angeles    8.6%                 14.3%

Retail, San Francisco        6.6%                 12.6%

Multifamily, Pittsburgh       4.6%                  7.3%

Data Source: Commercial Investment Real Estate ( CIRE) CCIM Magazine June 2010 Edition

Harbor Stone Advisors Commercial Group