Deal volume in the second quarter totaled 1.5 million square feet (msf), falling from 2.0 msf transacted in the first quarter. Tenants have leased 8.1 msf in the last four quarters, 0.3% above the long-term annual average.
The market’s overall availability rate was unchanged, remaining at 19.3%. The Class A availability rate rose by 40 basis points to 17.4%, but this was offset by a 50 basis point decline to 22.6% in Class B and C properties.
Overall asking rent in the region inched lower by 0.2%, falling from $28.46 to $28.39. Average Class A asking rent rose by 0.2% to $30.48 and has jumped by 2.3% year-on-year.
Investors have acquired $968 million in office properties through May of 2018. This represents a 24% decrease from the $1.3 billion transacted in the previous six months.
“A group of tenants seeking between 50,000-125,000 sf has caused the market to evaluate and pause, to see where the chips will fall, as these tenants patiently select locations."Greg Soffian, Corporate Managing Director