VACANT OFFICE SPACE STILL CLIMBING

Over the past 12 months, vacant office space in several markets has continued to creep up — and in some instances increased by more than 20%. In Baltimore, for example, vacant square footage increased by more than 2 million sq. ft., a jump of 24%.

Increase in Vacant Square Footage 3Q 2002 to 3Q 2003
(In millions of sq. ft.)
3Q 2002 3Q 2003 Difference
1 Baltimore 11.0 13.6 24%
2 Detroit 18.9 22.8 20%
3 Boston 35.8 42.6 19%
4 Denver 23.2 26.9 16%
5 Pittsburgh 12.2 13.9 14%
6 Kansas City 11.1 12.6 14%
7 San Francisco 45.7 51.6 13%
8 Long Island 10.2 11.5 12%
9 San Francisco 48.7 54.2 11%
10 Houston 31.7 35.3 11%
Source: CoStar Group Inc.


FULL-SERVICE HOTELS TAKE IT ON THE CHIN

Full-service hotels suffered more than limited-service properties in the first half of 2003. Although limited-service hotels saw revenue fall off by a greater degree, they managed to cut their operating expenses, limiting the decline in their income before fixed charges to just 7.8%

BY THE NUMBERS: OFFICE BUILDING OPERATING COSTS

Overall, fixed costs (including real estate taxes) constitute the largest source of expenses for private sector office buildings, reports the Building Owners and Managers Association (BOMA). Operating expenses increased from 2001 to 2002 in every area except utilities.

INDEPENDENT-LIVING DOMINATES SENIORS HOUSING DEVELOPMENT

Independent-living facilities, including apartments for seniors, continue to lead seniors housing development across the United States. They comprise nearly 60% of all new properties under construction this year.

CALIFORNIA DREAMIN'

Each year, New York research firm Harris Interactive polls more than 2,000 Americans about their dream dwelling place, and for the second year in a row, California has taken top honors. It's no surprise then, that California's population is expected to swell from 35 million to nearly 50 million by 2025. Respondents were asked to answer the question, “If you could live in or near any state in the country except the state you live in now, what state would you choose to live in?

Ranking of States, By Select Years:
2003 2001 1999
California 1 2 2
Florida 2 1 1
Hawaii 3 3 9
Colorado 4 4 3
North Carolina 5 7 4
Arizona 6 6 6
Tennessee 7 10 13
New York 8 8 *
Washington 9 5 8
Oregon 10 9 15
*Not in Top 15
Source: Harris Interactive