Poe & Cronk Real Estate Group in Roanoke has released the results of its 25th Annual Office Market Survey, reporting overall occupancy rates trending lower with rental rates remaining stable.
The occupancy rate in the Central Business District (CBD) decreased from 95 percent to 92 percent largely as a result of Anthem’s reduction of office space in the Franklin Plaza Building. Both the South and North Business District experienced a 2 percent decrease.
Overall occupancy rates in the valley dropped by 3 percent to 88 percent in 2011 adding an additional 130,000 SF of available office space. Roanoke’s 88 percent occupancy rate continues to outpace the 83 percent National average as reported by the National Association of Realtors.'
“Additional inventory is healthy when new construction is non-existent," says Bryan Musselwhite of Poe & Cronk. "In the past 12 months alone, we have seen a substantial increase in activity from both existing tenants looking to expand and new businesses interested in locating in the Roanoke Valley. The most recent example is Optima Health which located its regional headquarters in Downtown Roanoke at the corner of Williamson Road and Campbell Avenue."
Poe & Cronk developed Roanoke’s Original Office Market Survey in 1987 and have conducted it annually using consistent criteria and methods of reporting. This year’s survey incorporates data covering more than 100 existing nongovernmental office buildings measuring 10,000 square feet or larger.