- Flight-to-quality trend continues
- Rental rates will increase when improved office space is completed
- Smaller leases are driving office activity
The preference for quality office space is accelerating, forcing the vacancy rate down. The overall Class A vacancy rate was 7.4% during the first quarter of 2022 compared to 18.69% during the first quarter of 2021. Few quality office spaces are still available below 5,000 square feet. Therefore, many owners will build out speculative suites, some by mid-year, to accommodate the need for smaller quality office space.
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