Anchorage's office space vacancy rate is just over 5%, compared with a national rate of 16%, according to Theodore Jensen, MAI, of Reliant LLC in his January presentation to the Building Owners and Managers Association of Anchorage. Other western city vacancy rates range from about 9% in Portland to 25% in Phoenix.
Jensen forecasts another 200,000 of new Class A office space to be built in 2012, with more projects "in the wings." With low job growth limiting demand, and significant new supply, Jensen expects market conditions to soften in 2012 and result in downward pressure on rents at the high end and flat rents for the rest of the market. However, Jensen noted that Anchorage is still one of the better performing markets in the country.
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