A Quiet Yet Stable Quarter
The Tri-Valley office market got off to a slow start in the first quarter 2019 with negative net absorption of 75,524 square feet and general sluggish activity in the combined office and office/flex market sectors. The quarter continues a more than two year trend of one step forward, one step back. For example, the total market weighted average asking rent across all classes of space is now at $2.73 full service gross. Three years ago it was $2.45, and two years ago, $2.68. The total market vacancy rate today is 10.3 percent versus 10.3 percent at the close of the first quarter 2017.
Tri-Valley Class A weighted average asking rents are at $3.05 full service gross, unchanged from one year ago, but up from $2.98 in 2017 – essentially unchanged in the last two years. Vacancy in the sector is at 11.6 percent today, versus the 11.5 percent vacancy rate in the first quarter 2017. There was negative net absorption this quarter of 15,219 square feet.
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