Market Highlights

• Overall vacancy rose to 21.2% in Q1, an increase of 700 basis points year-over-year. Direct vacancy also climbed, up 150 basis points quarter-over-quarter to 14.7%, reflecting sustained pressure across the market.
• The construction pipeline continues to slow as recently delivered projects struggle to lease; developments completed since Q1 2022 are reporting an overall vacancy rate of 35.9%.
• Decreased funding and heightened market uncertainty have kept leasing activity limited, with only a few notable exceptions such as Biogen’s 580,000-square-foot (sf) commitment at 75 Broadway, slated for 2028.

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