M A R K E T B E AT

ROANOKE
Office Q3 2020

YoY 12-Mo. ECONOMIC OVERVIEW: Coronavirus Recovery

Chg Forecast

5.3% The COVID-19 pandemic continues to affect the economy. The economy has improved slightly over the third quarter as
government regulations eased. Unemployment has decreased as businesses reopen; however, the unemployment rate
Vacancy Rate
remains historically high and business activity continues to be stunted by the pandemic. Access the most recent information
specific to COVID here. In other economic news unrelated to the pandemic, Kroger announced it will be relocating their mid-
13K Atlantic regional office from their 60,000 square foot (sf) building on Peters Creek Road to Richmond, affecting approximately 100
Net Absorption, SF
employees in the market.

$20.51 SUPPLY/DEMAND: Limited Activity

Asking Rent, PSF
(Overall, All Property Classes) While some companies are returning to work, many continue to work remotely with plans to reevaluate in Q1 2021. The impacts from
the pandemic have postponed real estate decisions and, consequently, leasing activity is limited. The Roanoke office market,
however, has not seen the increase in sublease availability that other markets are experiencing. The most notable lease transaction
ECONOMIC INDICATORS during the quarter was 13,257-sf leased in Southwest Roanoke for Prosperity Service Group., Sales volume during the third quarter
Q3 2020 was $2.1 million for a total of 33.5 thousand square feet (sf) sold. The most significant transaction was the sale of 1421 3 rd Street SW
– a 9,159-sf office building that sold for $1.145 million in July 2020.
YoY 12-Mo.
Chg Forecast
153k PRICING: Stable
Roanoke
Employment The Roanoke office market has not experienced significant change in vacancy during the pandemic. Pricing remains flat and is
expected to remain stable for the foreseeable future, although there was a slight increase in Class A office asking rents over the last
12 months.
6.6%
Roanoke SPACE DEMAND / DELIVERIES OVERALL VACANCY & ASKING RENT
Unemployment Rate
200 $22 12%

8.8% 150
100
$20

$18
10%

8%
U.S.
Thousands

50
$16 6%
Unemployment Rate 0
$14 4%
-50
Source: BLS -100 $12 2%
-150 $10 0%
2016 2017 2018 2019 YTD 2020 2015 2016 2017 2018 2019 2020
PRICE GUTSHALL
Net Absorption, SF Construction Completions, SF Asking Rent, $ PSF Vacancy Rate
Senior Associate
+1 540 767 3011 A CUSHMAN & WAKEFIELD RESEARCH PUBLICATION Cushman & Wakefield (NYSE: CWK) is a leading global real estate services firm that delivers exceptional value
price.gutshall@thalhimer.com for real estate occupiers and owners. Cushman & Wakefield is among the largest real estate services firms with approximately 53,000 employees in 400 offices and 60 countries. In
2019, the firm had revenue of $8.8 billion across core services of property, facilities and project management, leasing, capital markets, valuation and other services.
©2020 Cushman & Wakefield. All rights reserved. The information contained within this report is gathered from multiple sources believed to be reliable. The information may contain
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