The Office market continues to be dominated by two trends, owner user purchases and moderately healthy leasing activity primarily from existing Billings tenants. NAI has assisted with approximately 100,000 SF of office market purchases, year to date, with the bulk of Billings activity coming from existing Billings tenants or building owners purchasing their first office building or moving facilities. Small micro office space under 500 SF continue to see strong demand while leasing between 1,500 – 5,000 SF has increased, year over year. However, almost all of these tenants are moving from other existing Billings facilities so vacancy has remained relatively unchanged at approximately 19% city-wide, with pockets of downtown office vacancy ranging between 24-29%. Midtown and west end office vacancy is lower, ranging from 6-12%.
Triple net equivalent lease rates remain around:
- $6-9/SF for Class C product
- $9-13/SF for Class B
- $13-18/SF for Class A or new construction spaces