The market experienced the lowest quarterly absorption since Q3 of 2012 with 13,776 SF of negative absorption. What is noteworthy regarding Q3 of 2012 was also right before a presidential election. Thereafter, the market achieved new heights. Whether or not that will be the case here is to be determined, but we do maintain a positive outlook on Q4 with several deals we are tracking expected to get signed in Q4, improving absorption.
The negative absorption can be attributed to several large tenant move-outs which created a drag despite several larger new deals being completed. This resulted in an increase in the vacancy rate from 6.89% in Q2 to 7.52% in Q3. However, this is not necessarily a bad omen for the market. Our vacancy rates have been at historical lows, and most would agree our current vacancy rate is still healthy.Read More