Northeastern Pennsylvania -
The following results were based on the two-and-a-half-month period prior to the pandemic shutdown.
The overall vacancy remained at 9.0%. Class A vacancy increased from 11.5% to 12.1% due to smaller space givebacks. The Class B vacancy rate decreased from 7.3% to 7.0%.
The weighted average asking rent remained essentially flat for Class A and Class B space. > Leasing activity was very limited even before the statewide business shutdown. General uncertainty about the duration of this economic event and the assessment of longer-term impacts are likely to impact business decisions for the next one to two quarters at the minimum.
No immediate, sharp increase in vacancy is anticipated, and asking rental rates are projected to remain flat for the next quarter. However, there may be signiɑ cant changes to future office space needs. Companies have had to adjust to having a remote workforce and are likely to have to provide flexibility for employees who want to continue working from home. The office environment may also be adjusted to provide more room for employees, ending the trend of tightly grouped, collaborative workspaces. With these changes, it is expected that despite the economic uncertainty going forward, office space needs will remain constant, and the amount of space needed per employee may actually increase.
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