Availability and vacancy rates have risen to levels last seen in 2017 (2.9% and 1.7% respectively); however, demand remains high as nearly 60.0% of all space for lease larger than 75,000 sq. ft. are under contract/offer.
The aggressive pace of absorption carrying from the past 20 quarters (average of 1.1 million sq. ft.) was offset by a wave of new availabilities. Nearly one-quarter of all available space was tracked as coming available on/after May 1, 2020 marking a 72.3% growth in market activity quarter-over-quarter.
Space available for sublease has nearly doubled to 834,241sq. ft., up 95.7% from the 426,379 sq. ft. available in Q1 2020. Nearly 70.0% of this growth has come available on/after May 1, 2020.
The 2,061,059 sq. ft. of new supply this quarter marks a 10-year high, of which 74.6% was pre-committed. Just over 2.5 million sq. ft. of the 4.1 million sq. ft. currently under construction is expected to deliver by the end of 2020, of which 64.1% has been pre-committed to.