Several key variables affect the status of an office market and its ability to absorb new or redeveloped office space. You will gather relevant data by reviewing the following resources and reports:

Costar Office Fairfax Center Submarket

Jones Lang Lasalle

Newmark

ESRI Community Profile

Fairfax County Maps and Geographic ApplicationsLinks to an external site.

Data to determine for your site$$s market area:

Total amount of space in the current office inventory in square feet

Vacancy rate for office space

Absorption rate: The amount of office space that has been absorbed annually over the last five years

Average rental rates per square foot for office space

Total amount of office space under construction

Percentage of under construction space that is pre$-$leased

Projected job growth within your site$$s county, MSA, or region

With these figures, use the market fundamentals from this week$$s reading to determine if current conditions for the site$$s office market are oversupplied, limited$,$ or robust. With a limited market, a small amount of office construction on the site might be appropriate. With a robust market for new construction, a more aggressive office program should be considered.

Additional research is necessary to further refine the market potential for the subject site. This investigation often involves studying business news and$/$or contacting the economic development staff at a city or county level. From these sources, you are seeking insight into new projects on the horizon, any growth industries in the area, or any targeted industries that are the focus of local economic development efforts. With this knowledge, you will be able to identify any potential factors that could alter the outcome of your office market assessment.

As a final step, make a determination of the percentage of potential office demand for your market area can be reasonably captured at the subject site. Prepare an overview of office space that is currently available or other sites where office buildings could be constructed. Evaluate your site against these opportunities to assess how competitive your site would be in attracting office tenants.