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POE & CRONK RELEASES 35th ANNUAL OFFICE MARKET SURVEY

ROANOKE, VA. — Poe & Cronk Real Estate Group today released the results of its 35th Annual Office Market Survey.  The report reflects remarkably stable occupancy throughout the Roanoke office market for 2021.

Overall, the Roanoke office market remains steady with a total occupancy rate of 85%.  The national office occupancy rate throughout all major US markets averaged 84% as of Q4 2021.

Roanoke’s downtown Central Business District saw just a two percent decrease in occupancy year over year from 89% to 87%. The southern office district had a positive two percent increase to 90% occupancy.  Both metrics are encouraging as the market navigated through another COVID year of hybrid and return to work strategies.

The northern office submarket experienced the largest impact, dropping from 85% to 76% occupancy. This drop is primarily attributable to the more than 250,000 square feet Advance Auto vacated at the Crossroads Office Center.  While this vacancy may have been somewhat accelerated, this change was expected to affect the market regardless of COVID as many Advance Auto jobs have already moved out of the region.

According to Matt Huff, President of Poe & Cronk, “Office occupancy rates in our market remain healthy and demand is steady.  COVID has certainly impacted office use in our region but we are seeing continued strengthening utilization rates and do not have new construction projects adding excess supply.”

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 non-governmental office buildings measuring 10,000 square feet or more.