Uncharted Territory
With the emergence of COVID-19, the North I-680 Corridor’s office market has predictably felt the effects. The vacancy rate has reached 16.3 percent, the highest rate in five years. Overall asking rents have increased to $3.10 from $3.08, due in part to the mass influx of Class A available space on the market. While the commercial office world comes to grips with companies downsizing and allowing employees to work from home, suburban and Class B properties may become the prime beneficiaries of this shift.
Class A rents overall are at $3.55 per square foot, a $0.04 decrease over the last quarter. Class B rents have decreased to $2.45 per square foot from $2.48 over the same period. Overall average asking rents increased to $3.10 per square foot, a $0.02 increase from the prior quarter. Although the rental rates increased overall, most of the vacant square footage belongs to Class A which impact the overall rate.
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