Analysis of Performance
Vacancy rates stayed consistent with Q4 2023 numbers with minimal shifts.
Industrial:
- "New completions (supply) continue to exceed net absorption (demand) causing the overall vacancy rate to trend higher. Still, at 5.8% as of Q1 2024, vacancy remains below its historical average of 7%. Rent growth is also coming back down to earth. In Q1 2024, industrial rents grew 6% annually vs. 10% in 2023 and 20% in 2022." - Cushman and Wakefield Q1 2024 US Industrial Report.
Office:
- Vacancies saw a small decrease in Q1 2024 and remain below the national vacancy rate.
- "Up 140 basis points year-over-year, the national office vacancy rate rested at 17.9%" - Commercial Edge National Office Report
Retail:
- "The national retail vacancy rate was 5.4% in the first quarter, near the lowest level experienced in the last two decades." Cushman and Wakefield Q1 2024 US Retail Report
- "Vacancy rates and rental growth are expected to soften over the next year, but limited supply and diverse tenant activity are likely to keep the market relatively tight." Cushman and Wakefield Q1 2024 US Retail Report
Metric Definition
Percentage of vacant, leasable commercial space within the city. This is divided into three categories: Industrial, Office, and Retail. The category with the worst vacancy rate is displayed and that is the value compared to our target.
Why Is This Important?
Commercial property use provides a measure of economic activity and economic capacity. As the vacancy rate drops additional commercial space may be necessary to capture economic activity.
City Organization Impact on Performance
Medium – The activities of the Economic Health Office directly relate to users of commercial space, but actual leasing activity is also influenced by other outside factors.
Benchmark Information
This metric contains no benchmark data because the purpose of this metric is to track economic trends within Fort Collins over time. The internal focus of this metric limits the value of benchmarks; historical comparisons to the City's past performance are more meaningful for this metric.