The deal, with an estimated annual yield of about 6.4 percent, reflects the surprising strength of the investment market for suburban office properties,
despite rising vacancy rates.
Over the next several months, however, they will face increasing pressure
from rising vacancy rates, falling rent levels and a difficult refinancing market.
But as owners of various property types struggle
with rising vacancy rates and declining revenues, mezzanine financing can help provide the competitive advantage needed to boost a property's bottom line.
Property managers have a new tool to help them
battle rising vacancy rates and manage their buildings more effectively — an online database that captures tenant leasing information, occupancy rates and even emergency information...
Still, if the percentage of speculative development continues to grow, it could contribute to
rising vacancy rates in the markets that have the most supply underway, Nordby says.
The prospect of another big building getting under way is seemingly at odds with the overriding trends in the downtown office market, which has been marked
by rising vacancy rates.
Offshore buyers are increasingly interested in Perth office stock, but limited assets for sale and the city's
rising vacancy rate are stifling opportunities.
Severino said that
the rising vacancy rate is largely due to builders being ahead of the game.
But over the past year,
rising vacancy rates and a slowdown of economic growth in some of the hardest hit areas prompted Fannie Mae to loosen the reins on underwriting policy and give lenders more delegation authority.
Cities / markets with lower economic volatility reduce the risk of negative demand shocks that may lead to
rising vacancy rates and declining office rents.
The typical warning signs — excessive debt levels, poor quality loans, exponentially increasing home prices,
rising vacancy rates and / or poor affordability compared to the past, and a high number of internet searches on house flipping — are not present.»