• Net absorption totaled 14.4 million sq. ft. in Q3 2017, nearly equaling the 15.1 million sq. ft. of net absorption in the first half of the year. 
  • Completions remained near cyclical highs at 11.6 million sq. ft., exceeding 10 million sq. ft. for the fifth consecutive quarter. 
  • More than 80% of metros registered positive net absorption in Q3, as well as year to date, reflecting healthy demand in most markets. 
  • The overall vacancy rate decreased by 10 basis points (bps) to 12.9%, matching the recent low in Q4 2016.
  • The vacancy rate has hovered between 12.9% and 13.1% for the past eight quarters, as new supply and net absorption have remained roughly in balance. 
  • The suburban market registered a 20-bps decrease in vacancy to 14.1%, while the downtown vacancy rate fell by 10 bps to 10.6% in Q3. 
  • Despite strong demand, rent growth has decelerated over the past year due to increases in new supply.  
  • Overall gross asking rent grew by 3.2% on a year-over-year basis in Q3 2017, down from 6.3% in Q3 2016.