Shadow Space Impact on Vacancies

Posted by Expert Gadget Reviewer on Friday, 4 June 2010

Report from CNBC reporter Diana Olick regarding the impact of "Shadow Space" on the major metropolitan office markets. Shadow space is loosely defined as space that is leased but not occupied (generally due to corporate downsizing). Essentially it is vacant space that doesn't show up on the vacancy reports because someone is still paying for it.

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The report notes that if you add up all the shadow inventory, it equals roughly 420 million additional square feet of vacant space (approximately the size of all the office space in New York City).