AVAILABILITY RATES STABLE
The national overall availability rate was essentially unchanged, dipping from 17.47% to 17.44%. The Class A availability rate ticked up from 18.3% to 18.5%. Austin registered the largest quarter-on-quarter decrease, posting a 230 basis point drop in its Class A rate from 16.4% to 14.1%. Raleigh/Durham’s Class A availability rate dropped by 80 basis points to 10%. In contrast, New York City’s Class A rate jumped by 90 basis points to 13.2%.
ASKING RENT INCREASES
On a quarterly comparison, the national overall asking rent rose by 1.0% from $33.47 to $33.80. Compared to the first quarter of 2017, asking rent has jumped by 2.8%. Class A asking rent increased by 0.8% to $37.52 in the first quarter and has jumped by 3.1% compared to the first quarter of 2017.
TRAILING LEASING PUSHES HIGHER
National four-quarter trailing leasing (the sum of activity over the last four quarters) increased from 218.5 msf to 222.1 msf – its highest mark since the first quarter of 2017.
"Confidence among U.S. businesses and households is as strong as it has been at any point in this recovery. Reduced corporate taxes and a relaxed regulatory environment are supporting more aggressive investment in R&D, construction and payroll growth. As companies and families go about their business and daily lives, they watch Washington warily – looking to see if additional stimulus is to come or if more divisive measures are enacted."
Keith DeCoster, Savills Studley Research