National Office Vacancy Rate Report

The U.S. office vacancy rate rose to 17.2 percent in the first quarter, its highest level in 16 years, as the market lost about 11.6 million net square feet of occupied space during the first quarter. The U.S. vacancy rate was 2 percent higher than a year ago.

Asking rent fell 4.2 percent from a year earlier. Factoring months of free rent and landlord contributions to space improvements for each tenant, effective rent was down 7.4 percent from a year earlier. Expect less of a bloodbath in fundamentals in 2010 versus 2009, but rents will still decline and vacancies will still continue to rise. Positive rent growth is not expected to resume until next year at the earliest. Tight credit markets have curbed office construction with only 3.6 million square feet of office space coming online.

Washington DC's 10.4 percent is the nation's lowest vacancy rate.

Detroit's 26.2 percent vacancy rate is the highest in the nation.