Availability increases with new deliveries; strong pre-leasing activity will leave few large options
With 3.4 million square feet (msf) of new construction in the development pipeline, both availability and asking rents increased with the start of the new year. Overall availability ticked up 190 basis points year-over-year to 12.7%. Class A availability saw a more pronounced increase, rising 300 basis points over the year to 11.1%. Outside of new construction, large-block options are scarce. With strong demand for large blocks as well as new and top-tier space, availability will be chipped away at quickly. The addition of new space, coupled with scarcity of large options, is also placing upward pressure on asking rents. Overall rents increased 17.0% year-over-year to $38.85 per square foot (psf), while class A asking rents increased 12.6% over the same period to $47.33 psf.