Office leasing activity up year-over-year
Office leasing activity has slowed since 2016, but was 1.5 million square feet higher in first quarter 2019 than first quarter 2018, reported Transwestern’s U.S. office first quarter 2019 report.
Office vacancy rates have not budged in three quarters, according to Transwestern, and were only 20 basis points lower than one year ago.
Net absorption fell to 10.9 million square feet in first quarter 2019, with sublet space recording negative growth of 1.6 million square feet.
Construction activity jumped 9.7 percent over the past year, the highest level in the current cycle. Deliveries recorded a slight uptick from fourth quarter 2018 and are expected to rise further in 2019 as current construction projects are completed.
Transwestern reported 45 of 49 U.S. markets sampled had positive rent growth, with 24 markets recording rates above 3 percent.
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