Optimism and demand, from tenants and buyers, helped fuel the Fresno and Clovis office market last year boosting sales and leasing volume to its highest level in a decade, according to a Colliers International report.
The vacancy rate is also down to 11.4 percent in the first quarter of this year compared to 12.8 percent last year. About 2.4 million square feet of space is available for lease or sublease in a market with nearly 21.3 million square feet of office space, said the first quarter 2017 report released by the commercial real estate firm’s Fresno office.
Not included in the total are government-owned and occupied office buildings which would push the total office market space to nearly 25.5 million square feet.
The market has seen little new construction – just a few buildings in the Palm Bluffs area – allowing the existing inventory to be absorbed, said Brian Decker, Collier’s president for Fresno, Bakersfield, Central California Coast.
The West Herndon Avenue and Palm Bluffs areas had the lowest vacancy rate at 8.5 percent. Office vacancy in Clovis, central Fresno and around the airport was under 10 percent, a healthy number, the report said. Downtown Fresno and West Shaw Avenue showed minor increases in vacancy.
“We were very bullish that 2016 would be a strong and active year in office leasing and sales, predicting that the momentum we had experienced in the three prior years would continue,” the report said. “That prediction proved true and then some, as 2016 turned out to be a very memorable year.”
Significant sales transactions completed by Colliers in 2016 included:
▪ 117,662-square-foot North Pointe Center at Palm and Herndon avenues.
▪ 39,305-square-foot Fresno Browning Office Center on North Fresno Street, south of Bullard Avenue.
▪ 39,293-square-foot Schneider Electric office building at 333 W. Pontiac Way in Clovis.