Lease Rates for CBD Class A Office Space at all Time High

Jones Lang LaSalle’s Quarter 3, 2012 Office Insight report was recently released.  It details significant improvements to the local office market.

Q 3 leasing activity was up 18.1% over Q 2
Q 3 net absorption totaled 179K SF
Q 3 net absorption includes 330 K SF of negative absorption from Intel and Cirrus Logic given up space
Q 3 net absorption totaled a 2.7% increase from Q 2

YTD absorption is up 34% from the same time last year

Vacancy is at 15%
Vacancy is down 3.3% from Q 2
Vacancy is down 25% comparing year over year
CBD vacancy has declined to 11.3%, an 8% reduction from Q 2

In Q 3 almost 5 million square feet of office space was sold

[pullquote align=”left|center|right” textalign=”left|center|right” width=”30%”]CBD Class A Lease space is renting at an all-time high, up 7.3% over pre-recession levels[/pullquote]

Currently there are no major office projects being built

Expect landlords to increase rents and to further decrease concessions