Continued Malaise

Three consecutive quarters of continued sluggish activity in the Tri-Valley office market probably indicates a “trend” versus the “market pauses” called out in prior reports. Seemingly, contrary to this trend, is the uptick in total market weighted average asking rents, which are at $2.76 full service gross, up $0.08 from one year ago, and up $0.03 from the prior quarter. The weighted average asking rents are based on vacant space, so to call the bump up in weighted average asking rents a positive market indicator is a “glass half full” approach. Net absorption for all classes of space was negative 151,444 square feet and the total vacancy rate for all classes of space is up half of a percent from the prior quarter to 10.9 percent, indicating a glass with less fluid.

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