ROANOKE, VA. (February 22nd 2021)— Poe & Cronk Real Estate Group today released the results of its 34th Annual Office Market Survey, reporting an encouraging increase in the overall Roanoke Valley office market occupancy rate during 2020. The region’s office occupancy rate increased by 1% in one of the most challenging years in recent memory to end the year at a stable 88%.
According to Matt Huff, President of Poe & Cronk, “Office occupancy rates in our market are remaining healthy. Roanoke looks to benefit from the economic effects of 2020. We have an outdoor based community with a low cost of living and a low cost of doing business. This helped keep demand strong for both commercial and residential real estate. 2021 is showing increased momentum and there are a significant number of ‘pent-up demand’ projects that are moving forward.”
While office users may not be currently using all of their office space, most are not ready to permanently commit to never needing it again. Offices and flexible workforces will look different moving forward, but each will be utilized. Employers and employees both are trending towards a return to the office in 2021. Most employers recognize that the best ideas and fastest execution happen with in-person collaboration. Employees are generally looking forward to a return to a delineation between professional and home life.
Evidence of stability in Roanoke’s economy can be found in the Southern Business District’s success in attracting new suburban tenants. The SBD saw occupancy growth from 85% to 88% in 2020, the largest increase in several years.
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.