Second Quarter 2013 Office Research & Forecast Report – The North I-680 office market steadily improved during the second quarter. Total vacancy decreased 0.1 percentage points to 15.5 percent. Vacancy has fallen at this modest pace for three consecutive quarters. There was 20,936 square feet of total net absorption. Class A leasing activity was focused in the Walnut Creek Downtown submarket as the area absorbed 21,360 square feet of space. In contrast, Concord gave back the most space with 70,609 square feet of negative net absorption. Total Class A absorption fell in at negative 25,553 square feet while Class B registered 41,940 square feet positive. Total average asking rents for all classes increased $0.01 PSF to $1.84 PSF. We expect further rent growth throughout 2013. Labor market info for the North I-680 corridor compiled by the California Employment Development Department shows unemployment at 5 percent, its lowest level since the third quarter 2008. Unemployment has now declined for five consecutive quarters. This trend falls in line with the overall improvement we are seeing in the local office market.
2013 Q2 | Walnut Creek Office | Market Report
