LEASING SLIDES LOWER
Following a burst of activity in the third quarter, leasing dropped off a bit in the final three months of 2018. Leasing totaled just over 1.0 msf, down slightly from the prior quarter. Tenants leased more than 5.0 msf in the four most recent quarters.
AVAILABILITY RATE FLAT
The region’s overall availability rate inched lower, dipping by 5 basis points, from 17.99% to 17.94%. The Class A availability rate fell by 32 basis points to 19.5%.
Overall asking rent ticked up by 1.6% to $33.32 ($2.78/sf). The Class A average rent increased by 2.5% to $38.33 ($3.11/sf).
Office property sales during the first eleven months of 2018 totaled $2.5 billion, a 14.2% increase compared to the same period of 2017.
"Leasing activity cooled a bit in the fourth quarter, but was within range of historical averages. With very negligible construction activity, even slightly subpar leasing volume has drawn down availability in spots.”Savills Studley Research