Third Quarter Real Report 2011
CURRENT STATE OF THE MARKET:
The market saw continued positive net absorption in the third quarter, bringing the year to date number to 698,598 SF. Vacancy rates, however, increased very slightly due to the addition of the recently completed Overlake Medical Building (160,000 RSF vacant) to the market. The Eastside Office Market saw average rental rates decrease from the previous quarter. That being said, leasing activity from tenants 10,000 RSF and larger remains extremely slow and until there is a considerable increase, rental rates will not spike upwards anytime soon.
• Vacancy has increased slightly from 15.2% to 15.3% across the Eastside Office Market.
• Net absorption was again positive, with 134,717 square feet absorbed in the third quarter, putting year to date absorption at 698,598 SF.
• Average asking rates decreased in the previous quarter to $27.52/SF, gross.