LEASING RISES
Deal volume in the third quarter totaled 1.8 million square feet (msf), rising from 1.6 msf transacted in the second quarter. Tenants have leased 7.8 msf in the last four quarters, a 3.6% below the long-term annual average.
AVAILABILITY FALLS
The market’s overall availability rate dipped by 60 basis points to 18.7%. Similarly, the Class A availability rate dropped by 40 basis points to 17.0%. Of note, both the overall and Class A availability rates have increased compared to the third quarter of 2017.
RENT DECREASES
Overall asking rent in the region inched lower by 0.7%, falling from $28.39 to $28.19. Average Class A asking rent also fell slightly, dipping by 0.5% to $30.33, but rose by 5.5% year-on-year.
SALES DOWN
Office property sales during the first seven months of the year totaled $1.1 billion, a 27% decrease compared to the first seven months of 2017.
“Several medium to large-sized tenants have decided to relocate in the CBD, loosening up the logjam of uncertainty and potentially changing the market dynamics over the next 12 to 24 months."
Greg Soffian, Executive Vice President