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LEASING ACTIVITY INCREASES OVER LAST QUARTERS
VACANCY SPIKE; NET ABSORPTION BEGINS TO STABILIZE
Last quarters spike in negative net absorption presented firms who have
been trying to expand their operations in the Tri-Cities office market
an opportunity to do so. Kaiser Permanente, ATI Systems International and
other firms are expanding their operations and leasing activity increased
to 585,600 SF for the quarter, more than double the level of leasing activity
that occurred in the previous quarter.
Soft spots remain in the Tri-Cities office market, especially in the home
mortgage and finance sectors, and significant amounts of space has returned
to the market. Other industries, such as entertainment and health-care,
have picking up the slack and so far these two factors have balanced each
other out; vacancy rates and net absorption remain virtually unchanged
over the previous quarter.
As market conditions further improved during Q1 2008, asking rents have
resumed their march upwards. Average asking rents increased $0.07 during
the quarter to end at $3.05 PSF / month FSG.
Contact Thomas Galvin at 909.937.6309 for more information.
  OFFTRI08Q1.pdf
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