Market Trends
- Vacancy decreased by 30 basis points (bps) year over year to 8.8%, while Q3 net absorption totaled 513,086 square feet (sf), driven primarily by the Airport Area and West County submarkets.
- There is 477,458 sf currently under construction, with 420,748 sf delivered in Q3. Although this is the smallest pipeline in five years, inventory continues to grow through office-to-industrial conversions.
- As vacancy remains elevated, asking rents continue to decline, falling to $1.31 per square foot (psf), down 3.0% from the previous quarter and 9.7% year over year. Recent positive absorption may help steady rates.