OFFICE:
STILL GROWING
The office market continues to grow with about 800,000 s/f currently under construction in the Lehigh Valley. About 25% of the new construction is planned to be completed within the next twelve months. Majority of the total 8.2% office vacancies still fall into class B or C office, with class A product holding a 14.6% vacancy overall. Prominent office parks filled with an abundance of class A space remain available in Allentown, Bethlehem, Center Valley, and suburban areas; with an average rental rate of $23.77/s/f in the beginning of 2020. With rates increasing as predicted, class A space is now averaging $24.20/s/f. Class B and C locations previously averaged a rental rate of $18.41/s/f, slightly increasing to $19.00/s/f. Lease activity is stable and remains the same throughout 2020, forecasting no major changes on the horizon.