Market Trends
- Net absorption in Q4 2024 totaled 0.5 million square feet (msf), bringing year-to-date absorption to 2.4 msf, a sharp drop from 9.1 msfin 2023. This reflects ongoing tenant downsizing and reassessment of space needs, with leasing activity slowing across most submarkets.
- Vacancy rates have risen to 9.1%, with new speculative deliveries offsetting limited tenant activity. Average asking rents held at $9.42 per square foot, supported by Class A demand, though concessions remain elevated to attract tenants.
- Deliveries in Q4 2024 totaled nearly 1.0 msf, bringing the year’s total to 3.2 msf, well below the five-year average of 7.5 msf. This reflects a broader construction slowdown, with under-construction inventory at its lowest point since 2019.