As a result, rental vacancy rates are dropping and rental rates are increasing.  Read the entire article in today’s Burlington Free Press.

Looks like multi-family properties are where it’s at if you’re looking for a solid commercial property investment.  Check out a few of Redstone’s Multi-Family property listings below:

457 St. Paul Street, Burlington

389 Riverside Avenue, Burlington

105 Hyde Street, Burlington

86 Pearl Street, Essex Junction

373 Vine Street, Northfield

233 Main Street, Northfield

246-250 Main Street, St. Albans

7 Alden Place, Vergennes

83 Hickok Street, Winooski

45 West Street, Winooski

While small, we are beginning to see positive trends throughout the turmoil that has been the office market in recent years. Vacancy is down more than an entire percentage point, from 12.5% to 11.4% overall, yet still well above the 7.4% vacancy historic average. New construction is on pace to be similar to last year, with roughly 171,000 SF of new inventory coming on the market, a number that is historically below average, but an approach that has helped curb ballooning vacancy numbers and decreasing rental rates. While Class B rental rates are still weakening, both in the Central Business District (CBD) and suburban markets, we are at least seeing the Class A rates stabilizing a bit, due in large part to market strength. With the recent announcement of MyWebGrocer.Com purchasing and planning to occupy significant space at the Champlain Mill, we should see vacancy numbers come down even lower. That said, we are still a few years out from getting to the historical averages, both in vacancy numbers, new construction, and rental rates. There is still unfortunately a saturation of available space, both in the CBD and suburban markets, that are still years out from absorption.

Click here to view all of Redstone’s office listings.

Blog Author:  Ross S. Montgomery, Redstone Broker

The Chittenden County office vacancy rate continued to climb this spring, reaching greater than 12% of the approximately 7.1 million total square feet of office inventory.  This is up from a 10% vacancy rate last fall, and almost double the historic average of 6.7%.  Despite these numbers, projections show record growth of office space in this market for the coming year. Space at 110 West Canal Street in Winooski is a prime example of the newer office space. A total of 326,000 SF of new office space is scheduled for completion by the end of 2009, a 5% total increase.  Notable additions to the supply include a 27,200 SF build to suit Homeland Security complex in South Burlington, the development of a 32,650 SF building for US Immigration in Williston, and a 138,000 SF former IBM building in Williston that is now available for lease.  With the abundance of supply and variable demand, we expect vacancy to exceed 14% by the end of 2009.   In terms of lease rates, office space in the Central Business District (CBD) are stable, demanding $13-$17 per SF for Class A, with Class B ranging from $8-$13 per SF.  An example of Burlington CBD office space is 115 College Street, 2nd and 3rd floor.  Despite current economic conditions, occupancy in the CBD is still strong.  We are seeing vacancy declining, down from 4.5% last fall to 4% currently.  With a 16 year historic average of 6.2%, these are encouraging numbers.   The suburban market however is weakening, with Class A calling for $12-$16 per SF, and Class B in the $7-$12 per SF range.   This is primarily due to a surplus of supply in this sector, and a vacancy rate of 14.7%, more than double the historic average.

115 College Street, Burlington, 2nd Floor:
http://www.redstonevt.com/Office-For-Lease-VT-Commercial-115-College-2-Burlington-Vermont/

115 College Street, Burlington, 3rd Floor:
http://www.redstonevt.com/Office-For-Lease-VT-Commercial-115-College-3-Burlington-Vermont/

110 West Canal Street, Winooski:
http://www.redstonevt.com/Office-For-Lease-VT-Commercial-110-West-Canal-Winooski-Vermont/