"The CBDs in the late '80s had a lot of speculative construction and then when the recession hit in the early '90s, vacancy rates were much higher than they are now," says James Delmonte, assistant director of Research, Cushman & Wakefield, New York City.
Delmonte attributes today's less significant vacancy rate to the frequency of pre-leasing activity in CBDs during recent years.
According to Delmonte
, "If you look at areas like San Francisco that were very much into the high-tech sector, you're seeing asking rents come down by as much as 50 percent."
"We are seeing a lot of renewal activity because of the rents - we may have reached the bottom so now is the time to renew before they start up-swinging again," Delmonte