Uncertainty Abounds
The Tri-Valley office market came to an immediate halt at the end of the first quarter of 2020 due to COVID-19 and the second quarter did not fare much better. Pushed up almost entirely by eight sublease offerings that came on the market in April, May and June, the overall vacancy rate increased from 10.9 to 11.3 percent at mid-year 2020, resulting in negative net absorption of 97,885 square feet for the quarter and year-to-date clocking in at negative 289,968 square feet. Overall average asking rents remain essentially flat inching up $0.01 to $2.86 per square foot full service.
Without a crystal ball, companies are re-imagining their space requirements. Gone is the highly compressed 150 square feet per worker metric, as social distancing requires greater space for interaction. Gone are the rows and rows of open workstations and cafeteria style bench seating. Health and safety are taking a front seat on our gradual return to the workplace.
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