Steady Fundamentals Bring Increased Office Activity
Fundamental statistics followed trends established in previous quarters as vacancy rates hovered and ended the quarter at 11.56%. Average asking rates decreased 1.05% quarter-over-quarter to $21.50 per-square-foot. Available sublease space remained at near record levels as total availability increased 66 bps quarter-over-quarter to 19.9%. Absorption leaned positive and ended the quarter with 18,030 square feet absorbed. Innsbrook and Scott’s Addition were the largest positive contributors and contributed 48,140 and 25,933 square feet, respectively.
- ARKO Corp joined 7 other Richmond based companies on the Fortune 500. Performance Food Group remained the area’s highest ranked company, followed by Altria Group and CarMax. In total, Richmond based, Fortune 500 companies produced a revenue of $122.7 billion in 2021 and employ over 124,000 people worldwide.
- EAB inked the largest new deal of the quarter, subleasing 70,000 square feet at SunTrust Center One (11011 W Broad St). Virginia IT Agency commenced on their 71,214 square foot lease at Boulders VII and was the largest contributor to the quarter’s absorption.
- Q2 posted 18,030 square feet of positive net absorption, with properties in the Northwest quadrant contributing the most. Class B properties located in the Southwest quadrant continued to experience negative absorption.