.jpg "Image treatment")
LEASING DECLINES AS SPACE OPTIONS REMAIN TIGHT
Tenants leased 1.1 million square feet (msf), a 23.1% decline compared to the previous quarter. Brisk competition for space, particularly in new buildings, has depleted options for tenants. Deal volume totaled 6.2 msf in the four most recent quarters.
SHARP DROP IN CLASS A AVAILABILITY
Aggressive leasing among top firms continues to make a dent in the Class A availability rate. The Class A availability rate fell by 210 basis points to 13.3%. Class B and C availability rose slightly, increasing by 60 basis points to 12.3%. The overall availability rate dropped by 70 basis points to 12.9%.
LITTLE CHANGE IN RENT
Class A asking rent for the entire region inched up by 0.2% to $39.62. Class B and C asking rent averaged $28.65, down by 3.9% from a quarter ago.
SALES DOWN
Office property sales during the first seven months of the year totaled $698 million, a 42% decrease compared to the first seven months of 2017.
"There seems to be no end in sight for demand for space, particularly new product, from top tech firms. Facebook, HomeAway and others dipped further into the next wave of proposed buildings, increasing the possibility that massive projects such as Broadmoor could get started in this cycle. "
Brad Hauser, Research Director