Office vacancy rate falls to 4 percent in the Charlottesville area
The office market vacancy rate for the Charlottesville area has declined sharply in the past year, according to CBRE | Charlottesville.
The commercial real estate firm reports that the office market fundaments improved in every quadrant of the Charlottesville market during the past 12 months.
Because of sustained demand for space without any increase in supply, the vacancy rate fell from 7.5 percent in 2015 to 4 percent this year.
Average asking rental rates have climbed 4.6 percent during the period to $24.84 per square foot.
“Charlottesville has transitioned to a highly landlord favorable market as scarce available product has created significant upward pressure on rental rates,” the report said.
The report notes that the Charlottesville area’s total employment rose at an annualized rate of 3.5 percent through the third quarter after robust growth of 4.1 percent last year.
Because of that trend, demand for Class A office space is expected to continue to grow, the report said.