The 2018 Central Valley Office Market in Summary
The Central Valley office market closed the fourth quarter of 2018 with positive absorption, completed new office development and significant construction planned for 2019. The average overall asking lease rate has increased from $1.45 to $1.61 from the first quarter to the close of 2018. The vacancy rate for the Central Valley office market is down for the fifth consecutive quarter, decreasing by 230 basis points to 8.3 percent by year end. Landlords have noticeably tightened their tenant improvement allowances and rent incentives. Sales have steadily continued with people taking advantage of the low interest rates despite low inventory.
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