Positive Absorption Brings Light To The Market
The Tri-Valley’s third quarter office campaign 2018 is highlighted by three significant transactions resulting in large positive absorption. Total Tri-Valley absorption was positive 415,212 square feet across all classes of space but notably the Class A Office sector weighed in with positive 423,036 square feet; the bulk of which came from two of the aforementioned transactions that will be detailed below. Total market weighted average asking rents closed the quarter at $2.71 full service gross, down from the prior quarter’s $2.80 full service gross. The drop in the weighted rents is a direct result of removal of expensive, Class A vacant space from the average as a result of the two deals, which effectively removed 359,271 square feet of $3.25 vacant footage from the average. Direct asking rents in the marketplace remain firm with many projects moving their asking rents higher. Tri-Valley total vacancy rate, Class A and B office and office/flex, dropped to 10.7 percent down from 12.3 percent the prior quarter.
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