Roanoke sees a sluggish quarter
The overall industrial vacancy rate in the Roanoke area remained unchanged at 8.3 percent in the third quarter, according to a report by Cushman & Wakefield | Thalhimer.
Meanwhile overall office vacancy rose 1.3 percentage points to 9.7 percent in the third quarter, the report said.
Industrial net absorption was a negative 71,000 square feet during the quarter compared with a positive 53,000 square feet in the same quarter last year.
In the office market, however, net absorption was 51,000 square feet, up from 19,000 in the same quarter last year.
The report attributes the increased office vacancy rate to the Norfolk Southern in downtown Roanoke and the Allstate building in the city’s Southwest area, both of which were recently vacated.
However, the report notes that the Norfolk Southern building is now under contract with local investors who plan to reposition it as a multi-tenant, Class A office building.