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 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%

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 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.

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

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© 2007 Penton Media, Inc.