Market Trends
- The vacancy rate ticked up slightly by 10 basis points (bps) from the previous quarter. This negligible increase is a result of slowing demand and space being delivered vacant.
- As economic uncertainty continues to rise, developers are becoming more cautious about initiating new projects, potentially resulting in a reduced pace of future development.
- In Q2, the construction pipeline decreased to 4.7 million square feet (msf) from a year ago of 5.4 msf. The average over the past two years has been 4.8 msf.