OFFICE: ONE WORD…GROWING!
Currently over one million s/f of office is under construction in our region. Due to the influx of availabilities and new space, office owners are left to reflect on their property and challenging them to consider potential upgrades and incentives to attract new tenants. The majority of available locations fall into class B or C office. 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. Class B and C locations average a rental rate of $18.41/s/f. The rental rates have been at a slow rise since 2018 and only appear to continue to increase throughout 2020, even though leasing activity has continued to decline this quarter. As of the new year, the Lehigh Valley held more than 2.5 million s/f on the market including approximately 20 office sites for sale, with the majority holding less than 50% vacancy. This struggle appears to have no immediate end in sight with ample office buildings being currently built.