Hot Off The Press: MPC’s Annual Office Market Analysis Now Available
Each year, MPC reaches out to local office property owners and managers with a survey asking about space availability, rents, and tenant activities.
That information is supplemented with online and field research to compile an inventory of local office buildings. Staff researchers then take a look at local and national trends in construction, vacancies, and pricing to evaluate conditions of the Knoxville office market.
Last week, the 2016 edition of the Office Market Analysis was released, marking the 33rd year the report has been prepared. Here are a few highlights from this year’s study:
- With an areawide vacancy rate of10.7 percent, Knoxville’s office market achieved a fourth consecutive year of improvement and marked its strongest showing since 2008.
- Positive absorption and limited new supply contributed to the 290-basis point drop in local vacancy rate since last year.
- Areawide absorption totaled 728,443 square feet this year, the bulk of those gains reported in the suburbs.
- Knoxville’s performance metrics were healthier than those reported nationwide: the U.S. metropolitan vacancy average improved to 13.0 percent over last year’s 13.4 percent but was higher than the local level. Knoxville outshined most of its Southeast Region competitors – the local areawide vacancy rate was bested only by Charlotte and Nashville.
- With nearly 4.7 million square feet of rentable space, or 23.0 percent of areawide total, the Downtown sub-market led all others in supply. It also made a strong showing in occupancy – its 8.3 percent vacancy rate was third lowest among the area’s seven sub-markets.
- West City sub-market captured a 19.2 percent share of areawide inventory and recorded the second lowest vacancy rate, 7.5 percent.
- Central/East/South rounded out the top three in supply and had the lowest vacancy rate areawide, 6.3 percent.
For more information about the 2016 Office Market Analysis or to purchase a copy of the full report, contact Terry Gilhula (terry.gilhula@knoxmpc.org / 865-215-3819).
