Fredericksburg-area vacancy rates decline

Cushman & Wakefield | Thalhimer reports that the overall industrial vacancy rate in the Fredericksburg area declined 4.5 percentage points to 8.1 percent in the third quarter.

The commercial real estate firm said the area’s overall office vacancy rate meanwhile declined one-tenth of a percentage point to 13.8 percent during the third quarter.

The report notes that the region’s unemployment rate in August was 4.2 percent and 1,353 jobs were added in the area since August 2015.

Industrial net absorption stood at 170,000 square feet in the third quarter compared with 53,000 square feet in the same quarter last year.

Office net absorption was 29,000 square feet in this year’s third quarter, down from 33,000 square feet in the same quarter last year.

“The majority of the Class A industrial space has been absorbed and as the market continues to tighten, previously stagnant Class B and C vacant units are beginning to see a rise in activity,” the report said. “Smaller flex units are experiencing increased activity as well, which is allowing landlords to sign stronger tenants for longer term leases.”

The report noted that while third quarter office absorption was down compared with the same quarter last year, year-to-date absorption was up 122 percent, to 77,250 square feet.