Office and Retail decline while Industrial posts positive demand
The Industrial market continues its surprised demand with distribution space driving the market to its 25th consecutive quarter of positive new demand.
- Net absorption increased to 696,000 SF
- Average asking rates increased to $9.88/SF
- Vacancy dropped to 9.7%
- 1.34 million SF of new construction continues forward.
Office vacancy continues to increase as negative market fundamentals continue in the office market.
- Vacancy increased to 13.4%
- Average office asking rates increased to $39.36/SF quarter over quarter with increases in operating expenses.
- Development is flat with new construction appearing to have halted.
- 29 projects with 6 million + SF are still under construction.
- Last quarter over 200,000 SF came online
Retail continued its slide noting -426,428 SF of net demand
- Occupancy is down to 94.6% in Q3
- Average asking rent fell to $20.25/SF
- Development activity has slowed. Construction activity continues but few new projects appear to be on the horizon.