ROANOKE, VA. — Poe & Cronk Real Estate Group released the results of its 31st Annual Office Market Survey today, reporting a net absorption of 56,000 SF as compared to the previous year, stabilizing the Roanoke Valley office occupancy rate at 84%.
According to Dennis Cronk, President/CEO of Poe & Cronk, “Occupancy rates in the Roanoke Valley have strengthened in the Central Business District from 85% to 88% 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.” The leases are Associated Asphalt (19,632 SF), Atlantic Credit and Finance (54,000 SF) and Power School (40,000 SF). According to published articles the 113,632 SF of newly leased space will bring about 580 new employees to downtown Roanoke at the intersection of Franklin and Williamson roads.
In the South Business District, occupancy decreased by 2% to 80% year over year. 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 SF of the 165,000 SF. This news was impacted by the closing of ITT Technical Institute and Liberty Medical at Lee-Hi Business Center which added 67,000 SF to the available inventory.
Occupancy in the North Business District increased by 95,396 SF equal to 2% year over year. The largest impact came from a number of new leases at The Park at Valley Pointe and Valley Court.
According to Cronk, “The increase in consumer confidence and demand for quality office space will continue to produce positive results in the office market in 2018. 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.