ONCOR reports recovering markets nationwide.

Downtown White Plains, NY, with a vacancy rate of 33.7 percent, faces the highest central business district (CBD or downtown area) vacancy rate in the United States, and New York City, with an average total rent of $51.20 per- square foot, boasts the nation's highest office rent, according to the ONCOR International Mid-Year 1994 Office Market Data Report, which surveys 60 major U.S. commercial real estate markets, along with two Canadian and 11 European markets.

ONCOR International is an organization of top-ranked independent commercial real estate firms providing in-depth knowledge of more than 180 markets and dedicated to serving clients with needs in multiple locations.

"At the mid-year point of 1994, we are pleased to note that CBD vacancy rates in the United States have declined slightly across-the-board, and have stabilized in most cities," said Stephen H. Jaggard, president and CEO of ONCOR International.

According to the. ONCOR International Report, in the United States CBDs, Downtown White Plains faces the highest vacancy rate (33.7 percent), followed by Dallas (32.5 percent), Tampa/St. Petersburg (30.5 percent), and West Palm Beach (28.1 percent). Just six months ago, Dallas charted the highest CBD vacancy rate (40 percent) and Downtown White Plains listed a vacancy rate of 35 percent.

Even New York City, which has more than 28 million square feet of available space (the largest available inventory in the world), has experienced a decline in vacancies over the last six months, from 15.5 percent in January to 14.7 percent as of July 1, according to the ONCOR International Report.

Topeka, KS, has the country's lowest CBD vacancy rate (7 percent), followed by Tallahassee, FL, (8.8 percent), Charlotte, NC, (9.2 percent), Walnut Creek, CA, (9.6 percent) and San Francisco, CA, (9.9 percent). Again, these vacancy rates are also lower than those charted in the same markets just six months ago, pointing to stabilization of commercial real estate markets around the U.S.

In Canada, Toronto currently faces a 19.9 percent CBD vacancy rate (down from 23.1 percent six months ago), with an available inventory of nearly 9 million square feet of space, while Ottawa charts an 11. 7 percent CBD vacancy rate, equal to approximately 1.6 million square feet of available space. In Europe, London has a 15.9 percent CBD vacancy rate, totalling 11.8 million square feet of available space, while Frankfurt, Germany, charts a CBD vacancy rate of 8 percent, equal to approximately 6.2 million square feet of available space.

"When you combine today's lower vacancy rates with the fact that we chart less than 5.6 million square feet of new construction underway across the United States, you get a clear picture of stabilization and renewed vitality on the horizon for the commercial real estate industry, Jaggard said.

Vacancy rates decline as available space is absorbed from the market. According to the ONCOR International Report, Chicago experienced 2.5 million square feet in net absorption of space over the last six months, followed by Boston (2.4 million), Dallas (2.3 million), Atlanta (1.99 million) and New York (1.75 million). The term "net absorption" refers to the change in available space over time. Just three U.S. cities experienced an increase in inventory over the last six months: Phoenix, AZ, (62,591 square feet), Albuquerque, NM, (8,525 square feet) and Tallahassee, FL, (6,373 square feet).

In Europe, Frankfurt experienced more than 1.5 million square feet in absorption during the first six months of 1994. In Canada, more than 900,000 square feet of space was absorbed. London, however, charted a 706,000 square foot increase in its office inventory -- the only European city to experience negative absorption during that same period.

"Available space is being absorbed in most markets, painting an even brighter picture for the future," Jaggard said. "As the pace of leasing continues to surpass the return or addition of space to these markets, vacancies will continue to decline and stabilization -- even revitalization will occur."

And as vacancy rates have decrease, the ONCOR International report also reveals that average rental rates have declined or stabilized in the majority of markets. "While landlords may not be happy with that fact, it is clearly a time of opportunity for tenants in most major markets," Jaggard added.

In the United States CBDs, New York City boasts the highest total average rental rate (including operating and electricity costs): $51.20 per square foot. The other most expensive U.S. office markets are: Washington, DC ($32.00 psf), Boston ($27.00 psf), Chicago ($26.82 psf), and Stamford, CT ($26.50 psf). For the most part, even the most expensive rents in the U.S. are the same or lower than they were at year-end 1993. For example, New York City's rent is unchanged from January, 1994, while the other "top five" markets have all experienced minor declines in total rental rates.

According to the ONCOR International Report, the best bargains for office space can be found in Fort Meyers, FL ($12.00 psf), Jacksonville, FL ($12.28 psf), Phoenix, AZ ($12.92 psf), West Palm Beach, FL ($13.33 psf), Denver, CO ($13.50 psf) and Tampa/St. Petersburg ($13.50 psf).

"Today's rental rates reflect true values realistically," Jaggard said. "Owner's have cut the fat out of leasing deals in order to attract the tenants they need. There doesn't appear to be too much more room for reductions, so we expect rates to remain flat until the supply-and-demand ratio shifts in the landlord's favor."

On an international scale, rental rates have also declined in many markets. According to ONCOR International, London boasts the highest CBD rental rate: $49.40 per square foot, followed by Dusseldorf ($35.90 psf), Berlin ($35.70 psf), Frankfurt ($34.80 psf) and Munich ($30.00 psf).

In Canada, Toronto's CBD average rental rate is $16.00 per square foot, while Ottawa charts an average rental rate of $6.33 per square foot.