OFFICE MARKET HIGHLIGHTS:
- At the end of 2019, the vacancy rate was 5.5%. Today, the vacancy rate sits at 9.3%. While this is significantly higher than pre-pandemic levels, the vacancy rate has continued to decrease over the last 3 quarters.
- The decrease in vacancy rate is encouraging, however we have not seen the end of companies downsizing their footprints. There are two large office users preparing to downsize by 100,000
SF each and others have not made a decision.
- The average office gross asking rental rate settled at $22.49 PSF, which is $0.68 PSF higher year over year. Asking rents are higher as a result of new construction but transaction rates are experiencing downward pressure as landlords are making concessions.
- There has not been any substantial new construction started in Q3 2021.
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