Market Trends
- Vacancy remained unchanged quarter over quarter but has risen steadily from Q1 2022. As over 60% of the construction pipeline remains available, expect upward pressure on vacancy and a gradual shift to a more tenant-friendly market.
- Quarterly leasing activity of 2.0 million square feet (msf) represents a 46.3% decline from one year ago. Landlords that can afford to be patient have shifted focus to the credit and securitization of tenants and are not seeking undue risk in an uncertain economic environment.
- Expect strong quarterly net absorption to continue through 2023 as tenants take occupancy from deals signed in 2022 and as built-to-suit projects deliver. Trammel Crow’s 3.5 msfAmazon fulfillment center in Loveland, projected to deliver in August, is set to provide the largest quarterly boost.