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UNITED STATES OCCUPANCY FIGURES DROP SLIGHTLY IN 1992

 WASHINGTON, March 5 /PRNewswire/ -- A survey of North American office markets released today by the Building Owners and Managers Association (BOMA) International shows that overall office occupancy rates in the United States declined from 81.7 percent in 1991 to 80.9 percent at year-end 1992.
 A summary of the survey results has been published in the Year- End 1992 North American Office Market Review. The 46-city survey represents more than 2 billion square feet of office space in the United States and Canada.
 "Increasing vacancy and declining absorption rates continue to plague major markets across the U.S. and Canada, however we are seeing slight improvements in some markets," said Stephen P. Hokanson, RPA, CPM, president of BOMA International. "Even so, we do not anticipate major improvements in most markets until 1995."
 "If employment projections by leading economists are correct, we could see more than one million new office jobs created by 1997, which could mean the absorption of over 40 percent of current vacant space within the next five years," stated Hokanson.
 The U.S. Office Market
 During 1992, many of the same pressures from 1991 faced the North American office market: tenant retention, attracting new tenants, oversupply, tight credit, and corporate downsizings.
 Class A space continues to do well, drawing tenants from Class B buildings at rates that Class B buildings were charging just a few years ago. Older stock and problem properties are being mothballed, and down the road others will be demolished. Even with new construction at a standstill, with the exception of medical facilities and some build-to-suits, there is no real absorption.
 U.S. Occupancy Levels Remain Lower Than Traditional Levels
 The occupancy rate for the U.S. downtown sector was 80.5 percent and the U.S. suburban sector was 81.1 percent. The city with the highest occupancy was Anchorage (91.4 percent), followed by Portland (85.9 percent) and Sacramento (85.8 percent).
 10 HIGHEST OCCUPANCY RATES (Year-end 1992)
 1. Anchorage, AL 91.4 percent
 2. Portland, OR 85.9 percent
 3. Sacramento, CA 85.8 percent 4. Oakland/East Bay, CA 85


.4 percent
 5. Seattle, WA 85.3 percent
 6. San Jose, CA 84.8 percent
 7. Tulsa, OK 84.6 percent
 8. St. Louis, MO 83.8 percent
 9. Kansas City, MO 83.7 percent
 10. Washington, DC 83.6 percent
 10 LOWEST OCCUPANCY RATES (Year-end 1992)
 1. Corpus Christi 60.6 percent
 2. St. Petersburg/Pinellas City, FL 70.8 percent
 3. Dallas, TX 72.8 percent
 4. Hartford, CT 76.1 percent
 5. Chicago, IL 76.3 percent
 6. New Orleans, LA 76.4 percent
 7. Phoenix, AZ 76.7 percent
 8. Indianapolis, IN 78.2 percent
 9. Buffalo, NY 78.5 percent
 10. Minneapolis, MN 79.0 percent
 Canadian Office Markets
 The overall Canadian occupancy rate declined 1.5 percent from year-end 1991 (85.1 percent) to 1992 (83.6 percent). Suburban markets performed slightly better than downtown markets, experiencing only a 0.8 percent decrease in occupancy vs. a 2.4 percent decline in the downtown sector. Ottawa, Vancouver, and Winnipeg reported occupancy levels well above the average for the total space reported for Canada, due in large part to their strong suburban markets. Recoveries in these markets may occur in the near future, possibly in 1993 or 1994.
 Occupancy Levels Among Canadian Markets
 (Year-end 1992)
 1. Winnipeg 89.0 percent
 2. Ottawa 88.8 percent
 3. Regina 87.7 percent
 4. Edmonton 86.7 percent
 5. Vancouver 84.5 percent
 6. Montreal 82.9 percent
 7. Toronto 81.8 percent
 8. Calgary 81.2 percent
 The North American Office Market Review can be purchased for $40, $20 with a BOMA member discount. To order, call 800-426-6292.
 Founded in 1907, BOMA International is the oldest and largest trade association exclusively representing the office building industry. Its members own and/or manage over 5 billion square feet of North American office space.
 -0- 3/5/93
 /NOTE: To request a complimentary copy of the North American Office Market Review, contact Lisa Simpson at 202-408-2686.
 Cities in the Survey:
 United States: Akron Cleveland Kansas City Sacra me nto
 Anchorage Corpus Christi Louisville St. Louis
 Atlanta Dallas Milwaukee St. Paul
 Buffalo Denver Minneapolis St. Petersburg
 Boston Detroit New Orleans San Jose
 Charlotte Fort Worth New York Seattle
 Chattanooga Hartford Oakland/East Bay Tampa Bay
 Chicago Indianapolis Phoenix Tulsa
 Cincinnati Riverside/San Pittsburgh Washington, DC
 Bernardino Portland
 Canada:
 Calgary Montreal Regina Vancouver
 Edmonton Ottawa Toronto Winnipeg/
 /CONTACT: Jeanie Markel of BOMA International, 202-408-2686/


CO: Building Owners and Managers Association International ST: District of Columbia IN: CST SU:

DC -- DC024 -- 3593 03/05/93 16:53 EST
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Date:Mar 5, 1993
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