Office vacancies mixed in first quarter

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Office vacancy in the Indianapolis area was little changed in the first quarter, according to Colliers Turley Martin Tucker.

Despite a net absorption of 126,000 square feet, the vacancy rate edged up 0.2 percent, to 17 percent, from the fourth quarter of 2007, the brokerage said in a report issued yesterday.

In the most recent quarter, a 0.8-percent vacancy dip in the central business district was countered by a rise of 0.9 percent in suburban markets.

On the far north side of Indianapolis and in Carmel, a vacancy created by Household Finance Corp.’s leaving the submarket in the face of the housing crisis caused the rate to swell to 16.7 percent from 16.2 percent, according to Jeff Henry, Colliers Turley Martin Tucker managing principal.

New vacancies in several buildings on the south side pushed the rate in that submarket to nearly 26 percent, from 22.1 percent in the prior quarter.

On the west side, tenants moving into Park Fletcher resulted in the rate falling two percentage points, to 25.7 percent.

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