Rent continues to increase for office and retail space in Charlottesville area
A major Virginia real estate company that specializes in commercial space has published its latest report on the Charlottesville market. Cushman Wakefield | Thalhimer begins with an overall assessment of the economy.
“After experiencing its highest unemployment rate on record of 10.2 percent in April 2020, Charlottesville employment has rebounded to near pre-pandemic levels of more than 116,000,” reads the top of the retail report.
The vacancy rate for office space is at 9 percent, but some of that is related to the placement of 359,000 square feet of space in the former State Farm Headquarters.
Recently constructed space is beginning to fill in.
“Apex Plaza delivered in the first quarter with a total of 187,000 square feet,” reads the office report. “Home to Apex Clean Energy and The Southern Environmental Law Center among other tenants.”
The report also notes the CODE building is coming online with coworking space and traditional offices. The price to rent these spaces is also increasing.
“Overall market rents reached north of $26 per square foot (psf), a historic high, and downtown Class A office rents are averaging north of $35 psf,” the report continues.
The retail report notes that more than 155,000 square of retail space have been built since 2020, and more is on the way.
“Projects like Albemarle Business Campus and Brookhill Town Center will bring continued growth to the market, delivering office and residential opportunities as well as restaurant and retail spaces, which are now pre-leasing,” reads the retail report.
The average asking rent for retail is $19.04 per square foot.
As for residential properties, I’ll be posting an anecdotal review of transactions early next week. Paid subscribers will get the first look before that content will go over to Information Charlottesville.
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