Colliers Tingey has released a new report showing five straight years of improvement to the Fresno/Clovis office real estate market. File photo
Written by David Castellon
Back in January, officials with Colliers International forecast that office vacancy rates in the Fresno-Clovis area would continue to decline through the rest of this year.
“We’re pleased to report that this has proven true in the first six months of the year, and we’re optimistic that this will continue throughout the remainder of the year,” according to Colliers’ mid-year office market report.
And that’s no small thing, considering 2016 was the best year for declining vacancy rates the Fresno-Clovis area has seen since the local post-recession economy started to turn around in 2011, said Brian Decker, president of Central California division of Colliers Tingey International, Inc., a global real estate company.
Colliers researchers determined that the overall Fresno-Clovis vacancy rate was 11.12 percent by the mid-year mark, down from 11.4 percent in December of last year, which was down from 12.8 percent vacancy rate in December 2015.
“At mid-year , approximately 2.4 million square feet is currently available for lease or sublease in a market totaling approximately 21.6 million square feet,” not including the additional 4.2 million square feet of office space in the adjoining cities, according to the report
Colliers divided Fresno and Clovis into eight markets, with the lowest vacancy rates being in the northeast/Clovis, at 9.93 percent, and the highest being the West Shaw area at 14.39 percent.
Not all eight markets had declines in vacancies over the first half of this year compared to December, as three — West Herndon/Northwest, Northeast/Clovis, and downtown Fresno — all had slight rises.
Still, the overall vacancy rate was down in the first half of this year. Colliers officials attributed last year’s rise in office space absorption to the local business community having confidence that the improving economy would continue to get better, and that held true for the first half of this year, Decker said.
“Confidence has continued,” he said, adding that it has been spurred by a generally positive stock market, optimism and good interest rates for loans to buy or fix up commercial space.