Vacancy in the Office Market Continues to Tighten in Q3

Office vacancy dropped almost 100 basis points year-over-year and ended the third quarter at 9.87%. Year-over-year, most rents throughout the State continue to rise, except for the Concord submarket. 

The Portsmouth submarket added about 97,000 SF of Class A space in two newly completed buildings. These buildings also welcomed two new tenants this quarter - Twin River Paper leased 6,238 SF at 85 New Hampshire Avenue and the IRS signed a lease for 18,500 SF at 75 Portsmouth Boulevard. 

In the Nashua submarket, Hellenic American University moved from its space at the Nashua Community College into 9,150 SF at 436 Amherst Street. This is the second school to sign a lease on Amherst Street this quarter. The Nashua Program at Brentwood returned to Nashua by signing a 8,000 SF lease. This alternative high school was located in Merrimack, but now will occupy the former Hesser College space at 410 Amherst Street.

In addition to businesses relocating, we also saw two large lease renewals over the quarter. Acadia Insurance renewed its lease for 17,459 SF at 4 Bedford Farms Road in Bedford. This location has been the company’s long-time regional office, which is ideal because of the access to the highway system. 

Similarly, Southern New Hampshire University (SNHU) renewed its lease in Salem with just over 16,000 SF at 25 Pelham Road. SNHU’s Advantage Program, a commuter driven associates program, has been in this building for over 4 years mainly because of its ideal commuter location. 

At Colliers International | New Hampshire, we internally track over 19 million SF of office space, including only  buildings larger than 10,000 SF, across six New Hampshire submarkets. These buildings can be multitenant, single tenant, or owner occupied and are classified as Class A, B, or C.