Commercial property construction in the Municipality of Anchorage, Alaska is said to be down from 2010, while the construction industry says the decline is the result of the large numbers of empty office space in the area. The city also pointed out that both the new residential and commercial property construction has gone down, but construction of commercial property has the lowest decline— about 51 percent.
According to a commercial broker Jeff Thon from Jack White Commercial, a local real estate company, the current vacancy rate in the city for new commercial properties is down by 7 percent, which is good compared to the nationwide vacancy rates but affected the commercial property construction sector in Anchorage.
Thon said the city has always absorbed over 150,000 square feet of commercial real estate properties in the last 15 years in the city, but in 2009, Anchorage has its first negative year because of three new commercial property construction in the city.
The problem is, according to Thon, in regards of real estate is because of its close- relationship to the oil industry— from oil service businesses to environmental groups that rents commercial space.
The demand for new commercial property construction is low in the city, and will remain that way until the empty spaces are filled in.
Anchorage’s municipal assessor, Marty McGee said, value of some commercial property has decreased to a certain extent.
A report from the city also said there’s a decrease in commercial property construction, which may be influenced by the nationwide recession.