2018: A Look Back

  • SUPPLY: 10 buildings delivered in 2018 totaling 3.1 million sq. ft.—the highest level since 2009. The addition of 1.2 million sq. ft. of vacant space contributed to elevating vacancy rates.
  • DEMAND: Two large leases accounted for 50% of the year’s total positive absorption, while the coworking sector contributed half of the remaining occupancy gains.
  • PRICING: Asking rates held steady in 2018 with concessions remaining at an all-time high.

2019: A Look forward

  • SUPPLY: While 2019 deliveries are expected to surpass 2018, construction starts have begun to slow, signaling a tightening development pipeline starting 2020.
  • DEMAND: With eight leases totaling 752,000 sq. ft. pending execution, the start of 2019 will be brisk.
  • PRICING: As vacancy rises due to new supply, net effective rents will likely remain static as a result of elevated concessions, especially for commodity space in lower-to-mid level floors.