Steady as it goes – Office vacancy rates similiar in Appleton, Green Bay markets

Posted on Nov 1, 2011 :: Insight on Business, Web Exclusive.
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Posted by of Insight Publications

Consistency is the name of the game when it comes to available office space in the Fox Cities, Oshkosh and Green Bay markets.

According to a report pulled together by Grubb & Ellis|Pfefferle, a provider of commercial real estate services throughout the region, overall office vacancies in the Green Bay market fell during the six months ending Sept. 30, but increased slightly in the Fox Cities and Oshkosh market.

In Green Bay, the overall vacancy rate was 15.2 percent, compared to 15.8 percent in the previous six months.

While the east and outlying submarkets saw an increase in the amount of space available, Tom Scheuerman, managing broker for Grubb & Ellis|Pfefferle, says the west side saw a decrease as a total of 25,000 square feet were absorbed.

Scheuerman says don’t expect many changes any time soon in the amount of available office space.

“With the continued slow economic recovery and lack of new construction, vacancy rates should not expect any material change,” he says.

Vacancy rates in the Green Bay submarkets are: East 14.8 percent, West 14.3 percent and Outlying 19.7 percent. Overall asking rents are $14.76 per square foot gross for Class A space across the entire Green Bay area on average.

In the Fox Cities and Oshkosh markets, vacancy rates rose to 16.8 percent from 16.6 percent during the previous six months.

In the outlying areas, there was a net absorption of 50,000 square feet with several properties, including the former US Oil headquarters in Combined Locks, finding new occupants.

On the east side, the overall available square footage increased with additional space opening up on Ballard Road, which attributed to the 15.6 percent vacancy rate. In downtown Appleton, the overall vacancy rate was 12 percent while the west side saw a 21.1 percent vacancy rate.

In Oshkosh, the total vacancy rate was put at 6.8 percent.

Scheuerman says continued slow job growth and planned consolidation of office space by several key area employers continue to put soft pressure on raising the vacancy rate. That trend will continue into 2012, he adds.

Asking rents are competitive with an average of $16.60 per square foot gross in the central business district to $14.83 per square foot gross in the other submarkets for Class A space.