Business

Local office space vacancy rate rises

Lexington saw increased vacancy rates for office and industrial space in the first half of the year, though retail space filled out some, according to NAI Isaac Commercial Properties' mid-year market report issued this week.

The biggest increase came in suburban office space, which saw its vacancy rate rise from 12.6 percent to 17.3 percent, according to the report.

Part of that has been new space becoming available, such as an office location marketed on Lexmark International's property. "If you look at the Lexmark space, that's nearly half of the vacancy that has occurred," said Al Isaac of NAI Isaac.

The vacancy rate, he said, is "a mixture of some natural loss and vacancy, and then there are some pretty large blocks that have come on. I don't think it means anything terrible for the market, but it's something we're going to have to absorb and get through."

The vacancy rate for retail space decreased, as retailers took advantage of more flexible occupancy terms, according to the report.

"The slowdown in new construction has kept the market in a good occupancy range, and most of Lexington's shopping centers have weathered the recession well and remain in good shape," according to the report.

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