Concord Office Space
In January of 2005, the Concord, CA Class A office market showed a 8.6% vacancy rate. Space demand in Concord has been, and continues to be strong. Currently, direct lease Class A office space asking rates range from $1.85-$2.15/rsf/monthly. In 2004, most direct lease transactions had an effective lease rate of $1.80-$1.95/rsf/monthly - which includes approximately 1 month of free rent per year of term, $10-$20 in Tenant Improvement costs and free parking. Every Concord Class A office building offers the procuring broker a 5% commission for a direct lease transaction.
The demand for sublease space has been greater than direct lease space due to a discounted rental structure and other concessions. Providing furniture, fixtures and wiring with a space will increase the demand, however it will not necessarily increase the sublease rental rate. It is recommended the asking rate for your sublease space would be $1.60-$1.70, in an “AS IS, WHERE IS” condition. It is anticipated the effective sublease rental rates in the $1.30 - $1.60/rsf/monthly range, subject to term, space quality, etc. (I will need to walk your space and review your lease for specifics). Similar to the direct lease commissions, the subleasing fee needs to be no less than 7.5% with the procuring broker receiving a 5% fee, and the listing broker receiving a 2.5% fee.
