PROVIDENCE – Downtown Providence office vacancy was 10.2 percent in the second quarter of 2018, a 1.8 percentage-point decline year over year, according to CBRE New England Friday.
CBRE said the decline in office vacancy can be attributed to 108,688 square feet of net positive absorption in the city.
- Class B offices accounted for the largest square footage in Providence for the quarter at 3.5 million square feet, which was leased at an average rate of $22.62 per square foot. There was 380,100 square feet available at the end of the quarter.
- Class A office space accounted for 2.1 million square feet of Providence office space, with an average lease rate of $32.63 per square foot. There was 204,480 square feet reported to be available at the end of the second quarter, according to the report.
- Class C office space made up just 537,608 square feet in the second quarter, of which 41,568 square feet was available. The average lease price for the class C office was $20.88 per square foot.
In downtown Providence, CBRE found the Capital Center District submarket to be the most expensive per square foot at $33.53.
The Financial District submarket was found to have the most available office space at 293,813 square feet at an average lease rate of $26.84 per square foot.
Vacancy rates in the Rhode Island suburban markets was 10.8 percent in the quarter. In the five districts measured, Aquidneck Island, the East Bay, Northern Rhode Island, Suburban Providence and the West Bay, there was found to be 954,264 available square feet of a total 8.8 million square feet.
Lease rates per square foot:
- Aquidneck Island: $15.51
- East Bay: $16.97
- Northern Rhode Island: $18.37
- Suburban Providence: $19.17
- West Bay: $18.96
CBRE also predicted the second half of the year would continue growth: “With numerous construction cranes dotting the sky for residential, hotel and office use, the Providence market expects to continue the positive momentum in the second half of 2018,” the report noted.
Chris Bergenheim is the PBN web editor.
