Lateral Moves and Downsizing Drive Activity through Spring — Shifting Activity in the Office Market Isn’t Moving the Vacancy Rate — Yet
Second quarter of 2022 saw average asking rates across the office market rise to $20.42 Full Service, nearly 7% above where they were at the end of the first quarter. The continued trend of flight to quality for office users is causing owners to increase their amenity offerings to occupiers, driving the dollar value for high-quality spaces up. Vacancy rose slightly to 14.43%, up 30 basis points but not rising as quickly as some national predictions indicated it would in 2022.
Key Factors in this Quarter
Contact Center spaces continue to make up a large portion of vacant office space, totaling approximately 450,000 SF.
Average asking rates across the office market rose to $20.42 Full Service, nearly 7% above where they were at the end of the first quarter.
Tenant improvement costs and construction delays have increased significantly from last year.