Sometime around Cinco de Mayo, the second quarter 2017 skipped second gear, dropping from third to first. With school letting out, graduations, and early summer vacations, market activity predictably slows down by June, but this version of May and June felt like May and June 2009. It is too early to call it a trend, but market activity is in low gear.
At the close of the second quarter 2016, the Tri-Valley office market had year-to-date gross absorption of 621,944 square feet. Gross absorption through the second quarter of 2017 is nearly 100,000 square feet light of that at 522,849 square feet. Gross absorption measures total footage of deals consummated. Net absorption for the year is negative 478,098 square feet compared to positive 621,944 square feet one year ago.