2018 in the Rear View Mirror
The 2018 Tri-Valley commercial office campaign has come and gone with forgettable statistics and a continued underlying message of a slowing market. The total market vacancy rate at the close of the fourth quarter 2018 is 10.6 percent, up slightly from the close of 2017’s 10.4 percent. Total market net absorption in the fourth quarter was positive 37,240 square feet with the year-end total at negative 70,651 square feet. Gross absorption for the year, the sum total of all deals inked, jumped 435,085 square feet indicating an active fourth quarter. Overall weighted average asking rents across all classes of space closed the year at $2.66 full service gross, down from the end of 2017’s $2.73 full service gross.
Tri-Valley Class A rents settled at $3.02 by year-end, $0.02 higher than the weighted average at the close of 2017. Net absorption for the year was a paltry positive 31,831 square feet that was rescued into positive territory with 40,151 square feet of positive absorption in the fourth quarter. Vacancy in the sector is 11.5 percent, down 0.2 percent year-to-year.
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