CBRE|Triad has released its Q3 2020 Office MarketView report for the Triad market. The quarter ended with vacancy slightly increasing from 9.9 percent in the second quarter to 11.2 percent by the end of the third quarter. Despite an increase in vacancy, demand for Class A office space held rental rates steady in Q3 at an average full-service asking rate of $16.88 per square foot.
Although COVID-19 slowed the Triad’s office market activity during the second quarter, the third quarter saw a lot of transactions in capital markets, often marked by medical users. These sales are strong indicators of the amount of capital available for healthcare investments and the drive to meet demand from these types of users.
The construction pipeline for the Triad market continues to progress, highlighted by the upcoming Project Slugger development. The Class A office building in Greensboro will overlook First National Bank Field and add roughly 100,000 square feet of office space to the market. Despite the pandemic, the Triad office market remains healthy with a vacancy below the national average of 14 percent. Stable asking rates, low vacancy, limited speculative development, and leasing activity on newly constructed buildings point to a sustainable market going into the upcoming months.
The CBRE|Triad Office MarketView highlights vacancy rates, lease rates and net absorption for the overall Triad office market, as well as each submarket throughout the Triad. The report provides information on net absorption compared to vacancy, average class A office asking rates, employment statistics, top transactions and more.
CBRE|Triad is a CBRE affiliate office serving the Triad Region. The firm assists real estate owners, investors and occupiers by offering strategic advice and execution for property leasing and sales; property, facilities and project management; corporate services; debt and equity financing; investment management; valuation and appraisal; research and investment strategy; and consulting. The local office closed more than $501 million in sales and leasing transactions in 2019. For more information about the Triad office, visit our website, www.cbre.us/triad.
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CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2019 revenue). The company has more than 100,000 employees (excluding affiliates) and serves real estate investors and occupiers through more than 530 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.