IRR-Greensboro Mid-Year Viewpoint 2015 Local Market Report - Office
The Triad Office market had some significant activity in 2014 with 720,000 square feet completed mid-way through the year with another 726,000 square feet proposed. Most of the new development has been in the Winston Salem CBD and totaled 529,000 square feet. The airport submarket in Greensboro had 122,000 square feet delivered by year end 2014. Rental rates still continue to trend upward slightly with a reported average of $17.25 per square foot per square foot for year-end 2014, up from $16.83 in 2013.
However, the vacancy rate has increased to 17.4%, up from 15% in 2013. The Triad Combined MSA lost an average of 1,095 jobs per year over the 7 year period ending in June 2014. Preliminary figures signaled a slowdown in the recovery during the 12-month period ending December of 2014 as a net total of only 1,198 jobs were added, the lowest level of employment growth reported since the contraction reported in 2009. Despite economic gains, the unemployment rate decreased 1.5% to 5.1% during 2014.
A shrinking labor force was the main contributor to the unemployment rate decreases during the 12-month period ending in December 2014. The total labor force decreased by 8,206 persons and as a result, most of the activity is attributed to tenants relocating within the market and not new companies relocating to the Triad area.
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IRR Mid-Year Viewpoint 2015 comprises a National Overview report and 300+ two-page Local Market Reports for all key property types as well as additional resources, including metrics methodology, graphs, and tables; these free reports may be downloaded from IRR’s site here.