Koontz McCombs Realty Services Inc. Unlike the handful of large leases and expansions that resulted in the weighty absorption figures in the first quarter of 2000, the office-market data for the first quarter of 2001 reflected a number of smaller transactions, says Kim Gatley, director of market research for Koontz McCombs.
Absorption measures the change in occupied space.
Vacancy figures and rental rates posted for all classes citywide also reflect the continued strength of the office market, Gatley continues. While Class-A space recorded a negative absorption of 41,717 square feet for the first quarter of this year, the overall vacancy and rental rates of these properties point to a strong market, according to the report. Between the last quarter of 2000 and the first quarter of 2001, these classes absorbed 35,126 square feet of space and 25,910 square feet of space, respectively. Average rental rates for both classes also were up. When you have owners that are willing to quote higher rates across the board, that shows that there is confidence in the market.