MARKET TRENDS
- Total availability of 22.0% increased 40 basis points year over year, leaving tenants with an abundance of space options, as well as heightened leverage in lease negotiations
- Expect increased availability and ample sublease options, alongside potential landlord loan distress, to support tenant-friendly market conditions through year-end 2024
- Rental rates are up due to higher construction costs and greater tenant demand for high-quality office space, though Fed interest rate cuts may ease financial pressure for developers