• The office market’s healthy fundamentals fueled from strong tenant demand put downward pressure on vacancy, which resulted in a rise in asking rental rates over the last year.
  • Net absorption in the second quarter totaled 371,504 sq. ft., resulting in 1.9 million sq. ft. of gross absorption. This is the 36th consecutive quarter where the market has seen positive absorption.
  • Net absorption for the year totals 953,813 sq. ft. with 3.1M sq.ft. of gross activity.
  • Despite relatively high levels of new supply, market-wide vacancy of 14.9% in Q2 2019 was the lowest rate in a decade.
  • The market’s average asking rental rate at the end of the quarter was $26.89 per sq. ft. (FSG annual), a 5.0% annual increase.
  • Average rent for Class A and Class B properties increased 3.1% and 4.0% year over year to $35.30 and $26.25 per sq. ft., respectively.
  • During the second quarter, developers delivered 423,370 sq. ft. of speculative office.
  • Approximately 2.5 million sq. ft. are under construction in the metro, in which 43.7% is preleased.