The second quarter of 2021 saw the pendulum begin to swing back to center as negative absorption and increasing vacancy began to slow down significantly.
Numerous companies this quarter removed and reoccupied space they had placed on the sublease market in 2020, showing the demand for office space is continually rising.
While vacancy continued to increase in Q2 2021, the rate of increase began to exhibit signs of slowing down. Vacancy rose 140 basis points (bps) quarter-over-quarter to 20.5%. Similarly, availability increased 30 bps to 25.2%.
The trend of slowing development activity continued in Q2 2021, with under construction projects decreasing to 4.8 million sq. ft.