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The Occupancy Rate in the Office Market Dropped for the Second Consecutive Quarter

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Even though we are still in the pandemic, the New Hampshire commercial real estate market is beginning to show a clearer direction. Companies in the office sector are still facing some uncertainties as they try to make decisions on their office needs - will they need less space or decide to consolidate locations if they stay with a work-from-home platform, will they need to expand to adhere to social distances guidelines, etc. 

The occupancy rate in the office market dropped by 0.7% year-over-year for the second quarter in a row, ending the quarter at 91.2%. This translated to a negative absorption of 314,474 SF. Given the current climate, this does not come as a big surprise, but a larger shift may still come as more companies reconfigure their office space. 

Despite occupancy rates dropping, rents actually rose by 3.01% or $0.57 PSF year-over-year, ending the quarter at $18.89 modified gross. As more space becomes available, rents will likely level out or start declining. 

Although the office market is facing some challenges, this quarter did mark the completion of another new office building this year. The Class A, 72,000 SF timber frame building at 90 Arboretum Drive in Newington is up and ready for interior finishes. Wheelabrator Technologies signed a lease for two of the three floors, but will not occupy the building until the beginning of next year. 

At Colliers International in New Hampshire & Maine, we internally track over 23.07 million SF of office space across 6 submarkets. Our inventory includes buildings and condominiums 10,000+ SF and are classified as Class A, B, or C.   


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The Occupancy Rate in the Office Market Dropped for the Second Consecutive Quarter

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Kristie Russell

Research Manager | New Hampshire & Maine

Manchester, NH

As the Research Manager, I serve as the point person for gathering and reporting on market knowledge for the New Hampshire and Maine offices. 

I collaborate with our brokers to deliver in-depth analyses of current market conditions and trends for their clients. Using various in-house and online resources, I maintain our proprietary database, which includes detailed property statistics, sale and lease comparables, market contacts, and tenant activity within New Hampshire and Maine. 

With this data, I develop best-in-class research reports, market analyses, and market insight to ensure our clients capitalize on this research as they contemplate business decisions that significantly affect their bottom line.

Prior to becoming the Research Manager, I was a Marketing Specialist at Colliers for five years. In this position I used Adobe software, including InDesign and Photoshop, to implement marketing strategies in support of our brokers. 

My responsibilities included creating property marketing collateral - such as flyers, brochures, ads, and proposals - as well as maintaining listing databases and our exclusive listing inventory. In addition to the property marketing, I assisted in coordinating special events, handling public relations and advertising, creating brand awareness, and developing our SEO and social media campaigns. 

Additionally, I am a licensed real estate salesperson in New Hampshire.

Prior to beginning my career in commercial real estate, I worked for Gallery Marketing Communications, LLC as a graphic design artist. During my time there, I used Adobe software to design brochures, flyers, business cards, and postcards, among other marketing materials. I also worked for Gatehouse Media, Inc as a freelance sports journalist, covering high school games in Massachusetts.

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