Key Market Trends
- The vacancy rate increased slightly during the fourth quarter from 9.6% to 9.7%. Year-over-year vacancy rose from 9.2% to 9.7%.
- Class A occupancy improved during 2020, while Class B buildings lost occupancy. However, the changes in both building classes was minimal.
- The weighted average asking rent remained stable in the fourth quarter at $18.61 per square foot, full service. This average is down by 0.7% from 2019.
- The number and total square footage of properties on the market for sale were down slightly from the third quarters.
- Closings in the 4th quarter slowed overall but were up after adjusting for the Hammes Partners’ Coordinated Health portfolio sale last quarter.
- Secondary and tertiary markets continued to draw investor attention away from the traditional urban cores.