|
|
Article: Higher building material costs could reduce vacancy rate
- Article from:
- Tribune-Review/Pittsburgh Tribune-Review
- Article date:
- October 22, 2006
- Author:
CopyrightCopyright 2006 Tribune-Review/Pittsburgh Tribune-Review. Provided by ProQuest LLC. (Hide copyright information)
|
Higher building materials prices may eventually have an impact --
in a positive way -- on the relatively high vacancy rate in the
Pittsburgh office market, a report indicates.
According to Grubb & Ellis Co.'s 2006 Office Trends Pittsburgh
report for the July-September quarter, the scenario goes this way:
Rising material costs and engineering/design requirements have
increased the cost of new structures.
That means rental rates are approaching levels that will not
justify new construction, which will result in a slowdown in new
building activity.
That forces tenants to absorb existing space, which in turn helps
decrease the vacancy rate in existing buildings, now at 19.5 percent
for all ...