Q2 Office Report – N680August 3, 2021
I hope that you’ve been enjoying your summer so far. It seems that everyone is taking the opportunity this year to get outside. The lockdowns in 2020 have affected us all and we are seeing that results in the office sector. When you look at touring activity, it’s down. Our summer months are typically slower than the Spring and Fall months but this summer seems to be slower than usual.
I’ve attached our office market report for the 2nd Quarter. Note that our numbers are run off of an index. Our index is like a filter. We only look at Class A and B office properties. Of those properties, we only look at buildings that are larger than 20,000 sf and they can’t be occupied by an owner user. The reason for these filters is we feel it shows what the true statistics are in commercial buildings that are owned by investors and they aren’t showing an artificially low vacancy or high rents because the owner has occupied a majority of the building.
Overall, the numbers show that vacancy has increased to 18.8% within our index and that compares to 15.6% in 2020. We are also showing that the average rents in the N-680 office market have dropped by $.10/sf/month to an average of $3.05/SF/Mo. Fully Serviced. We highlight the individual markets in the report which can be found at the bottom of the post.
If you would like to see a different comparison or have any questions then give me a call and I would be happy to do a custom run for you.
Thanks, Chris Crabtree (510) 915-7645