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CBD vacancies take biggest drop since '87.

The vacancy rate for commercial real estate in the nations central business districts (CBDs) decreased to 19.5 percent at the end of the third quarter from 19.8 percent at the end of the second quarter, marking its biggest decline in nearly six years, according to Cushman & Wakefield, Inc.

A lack of new construction in the majority of cities across the nation caused of 1987, when the CBD vacancy rate dropped to 13.5 percent from 14.3 percent.

No new construction was delivered in Los Angeles, Miami, Boston, Washington, D.C. and San Francisco, and an insignificant amount was delivered in New York City-Midtown.

According to Arthur J. Mirante II, president and chief executive officer of Cushman & Wakefield: "This is a good sign. However, the decrease in vacancy rates will not continue unless white collar job growth returns and fuels leasing demand."

The suburban vacancy rate also decreased, from 21.1 percent in the second quarter to 20.7 percent in the third quarter. Somewhat stronger demand and a lack of new construction led the decline.

Vacancy rates dropped in 30 of 43 suburban markets, and major markets such as Dallas, Northern Virginia, Boston, Northern New Jersey and Miami led the way. In Miami, demand for space increased as a result of Hurricane Andrew, which caused several businesses to find new space.
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Title Annotation:central business district vacancy rates decrease to 19.5% by third quarter of 1992
Publication:Real Estate Weekly
Date:Nov 18, 1992
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