Roanoke Valley office occupancy rate is 84 percent for 2017, according to report
New leases in Roanoke’s Central Business District have helped stabilize the Roanoke Valley’s office occupancy rate, according to an annual office market survey by Poe & Cronk Real Estate Group.
The 31st survey reported an occupancy rate of 84 percent in 2017.
“Occupancy rates in the Roanoke Valley have strengthened in the Central Business District from 85 percent to 88 percent year over year. The strongest increase in several years is due largely to recent announcements of three new leases in Franklin Plaza and One Ten Franklin office buildings,” Dennis Cronk, president and CEO of Roanoke-based Poe & Cronk said in a statement.
The leases are Associated Asphalt, 19,632 square feet; Atlantic Credit and Finance, 54,000 square feet; and Power School, 40,000 square feet. The 113,632 square feet of newly leased space is expected to bring about 580 new employees to downtown Roanoke at the intersection of Franklin and Williamson roads.
In the suburban South Business District, occupancy decreased by 2 percent to 80 percent, compared to 2016. The primary impact came from the announcement that Metis Holdings acquired the former Allstate Insurance building on Electric Road and would be occupying 75,000 square feet of the 165,000 square feet.
This district was impacted by the closing of ITT Technical Institute and Liberty Medical at Lee-Hi Business Center, which added 67,000 square feet to the available inventory.
Occupancy in another suburban area, the North Business District, increased by 95,396 square feet, equal to 2 percent year over year. The largest impact came from a number of new leases at The Park at Valley Pointe and Valley Court.
“The increase in consumer confidence and demand for quality office space will continue to produce positive results in the office market in 2018,” said Cronk. “However, we must keep in mind the increase in the number of new employees moving into downtown reduces the number of accessible monthly parking spaces. This lack of monthly parking could have a negative impact moving into 2018 and beyond.”
Poe & Cronk developed Roanoke’s original office market survey in 1987 and has conducted it annually using consistent criteria and methods of reporting. The survey incorporates data covering more than 100 non-governmental office buildings measuring 10,000 square feet or more.