CBRE|Triad has released its Q3 2021 Office MarketView report for the Triad market. The quarter ended with vacancy slightly increasing from 13.0 percent in the second quarter to 13.7 percent by the end of the third quarter. Rental rates increased ending the second quarter with an average full-service asking rate of $16.90 per square foot.
Leasing activity increased during the third quarter with several new signification transactions such as Key Risk signing on for 27,000 square feet at The Outfields in Downtown High Point and Javara leasing 15,000 square feet in the Bailey Power Plant building in Downtown Winston-Salem.Despite the increase in vacancy, construction projects remained steady with 132,000 square feet underway across the market.
“Office fundamentals have fared better than anticipated in the Triad market, even though it has been the most impacted property type during the pandemic. Overall, momentum has continued to pick up largely due to increased activity in tenant renewals while occupiers are continuing to determine their office footprint as they formalize their reoccupancy strategies. We do not yet know the long-term effects of COVID-19, but we expect landlords to keep rates steady as larger deals are formalized,” said Executive Vice President Greg Wilson.
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.
About CBRE Group, Inc.
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.