CBRE Report: Strong Demand for Commercial Real Estate in Cville - NBC29 WVIR Charlottesville, VA News, Sports and Weather

CBRE Report: Strong Demand for Commercial Real Estate in Cville

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Despite the real estate market's drop during the recession, commercial real estate is now in strong demand around Charlottesville.

A new report from commercial real estate firm CBRE shows limited vacancy of office space downtown - meaning businesses are growing and new commercial construction is around the corner.

The report says that there are 1.8 million square feet of office space, but only13.8 percent of that is vacant. 

According to the report, the Charlottesville percentage is a few points below the national average of 15.4 percent.

The low vacancy rates are directly attributable to local businesses.

"Low vacancy is attributable to the startup businesses here that have started here in Charlottesville and have grown up here in Charlottesville… those businesses that started here with 1500 square feet and grew into 15, 20,00 square feet," said Carolyn Shears, CBRE vice president.

The report also notes that rent for the Charlottesville business community has gone up slightly and that unemployment rate for Charlottesville in 2012 fell to 5.7 percent – below the national average of 8.1 percent.

To read the full report, click here.

Reported by Maria Hallas 

Charlottesville Regional Chamber of Commerce
Press Release

(Charlottesville, Virginia – April 24th) CBRE | Charlottesville, a leading commercial real estate firm, today reported to the Charlottesville Regional Chamber of Commerce, that its 2012 data reveals a stable Class A commercial market in the Greater Charlottesville Metropolitan Statistical Area with particularly strong demand and limited vacancy in downtown.

"Overall we describe the region as ‘stable', since modest declines in certain market segments were off-set by modest gains in others. For example, despite an uptick in vacancy in both the North and the East quadrants, rental rates increased in the market on average year-over-year, with Downtown experiencing positive net absorption and a continued shortage of available Class A office space", stated Cass Kawecki, Vice President at CBRE.

The report notes that as of 2012 there was approximately 1.8 million square feet of Class A commercial space in the Greater Charlottesville Region (excluding owner-occupied, condominiums and institutional space), of which 13.8% was vacant, below the national average vacancy for Class A commercial office space for the same period of 15.4%.

Other regional 2012 economic indicators include:

  • A slight increase in average rental rates, from $22.19 / sq. ft. to $22.30 / sq. ft.;
  • A slight increase in vacancy of Class A space from 11.7% in 2011 to 13.8% in 2012 (still below the 2012 national average vacancy of 15.4%);
  • Negative net absorption overall in the market primarily due to increased availability in the University of Virginia Research Park on US29 North; and,
  • Continued unemployment rates below national and state averages.

"This is a comprehensive report on Class A commercial space here in our community," stated Valerie Wagner Long, of Williams Mullen, who serves as the 2013 Chair of the Chamber Board of Directors. "It shows a marketplace that is sound and stable and presents opportunity for new growth and development. We thank CBRE for this important effort.

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