Reis Inc., a New York based real estate research firm, reported 3rd quarter vacancy rates of 16.5%. Couple this with a climbing unemployment rate of 9.8% (Yikes) and there doesn’t seem to be a recovery of any sort happening here.

Rightly so, The Wall Street Journal is reporting (Fed Frets About Commercial Real Estate) that the Fed has concerns about commercial real estate and the speed with which banks are taking their losses.

The fact of the matter remains unless you have jobs growth there is no demand for office space. People can’t or won’t start new companies and existing employers are shedding space not expanding into space.