As concerns and restrictions related to COVID-19 have increasingly been alleviated, employees are gradually starting to return to the office.
Expect landlords to augment their offerings, increase amenities, and adapt spaces as employees trickle back into the office. As demand slowly increases, average asking rents increased 1.57% to $30.44/SF and the availability rate decreased by 30 basis points (bps) or 96,012 SF quarter-over-quarter. Renewals represented three of the five largest transactions and accounted for 45% of the total leasing volume for the first quarter of 2022 at 105,456 SF. Available space will continue to drop as demand persists, construction pipelines focused on multifamily, and certain buildings become owner-occupied.