MARKET FUNDAMENTALS IMPROVE ACROSS ALL OFFICE CLASSES
The North I-680 Office leasing market improved across all class segments during the first quarter 2014. Class A vacancy decreased 40 basis points to 15.0 percent, Class B vacancy fell 130 basis points to 13.8 percent and Class C vacancy decreased 20 basis points to 21.4 percent. These changes combined to result in total vacancy falling 60 basis points to 15.6 percent. The market as a whole absorbed 117,436 square feet.
The Walnut Creek Downtown submarket absorbed space in the first quarter. Class A vacancy decreased 10 basis points to 14.2 percent. Class A registered 3,482 square feet of net absorption during the quarter. Class B registered 15,163 square feet of net absorption as vacancy fell 100 basis points to 12.3 percent. At 1850 Mt. Diablo Boulevard, Legacy Risk & Insurance Services leased 9,620 square feet on the fourth floor. Rudolph & Sletten took 3,320 square feet at 800 S Broadway. At 1801 Oakland Boulevard, Proforma Partners leased 2,760 square feet on the second floor.
The Walnut Creek Pleasant Hill BART Class A submarket registered a 230 basis point decrease in vacancy. The submarket tracked 41,011 square feet of net absorption. Vacancy now stands at 11.5 percent returning to a level seen one year ago. The most significant lease transaction was Del Monte Foods 26,835 square foot, sixth floor lease at PMI Plaza.