Leasing stabilizes following historic Q1 surge

After a record-setting first quarter of leasing activity, volume declined in the second quarter to 883,807 square feet (sf). Although this represented an 8.4% increase compared to the same period last year, it was the first time in four quarters that leasing activity fell below the five-year quarterly average. The quarter’s largest deals were primarily driven by tenant renewals, including those by HDR, Cox Enterprises, and General Dynamics Information Technology. In addition, Architecture, Engineering and Construction firms, as well as tech firms, led the largest transactions in the region. Office-using employment in the region dipped slightly by 0.3% year-over-year between May 2024 and May 2025, according to data from the Bureau of Labor Statistics. This contraction underscores the continued challenges facing the regional office sector.

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