OFFICE MARKET HIGHLIGHTS:
- The vacancy rate finished Q2 at 9.5% increase from 9.1% in Q1 of 2021 and from 7% in Q2 of 2020.
- We believe vacancy will get worse before it gets better. There are still companies in the market that have yet to announce decisions to downsize their office footprint as they shift to a work from home model. This trend will continue to put newly constructed office buildings at a competitive disadvantage as the new to market space is primarily expensive Class A product with no existing interior finishes.
- The Northwest Submarket, which has performed well over the last three years now sits at 13.8% vacant with 396,749 square feet of space on the market. This is 1.6 years’ worth of typical absorption for the entire market within one submarket.
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