Q3 2019 net absorption slowed compared to the previous two quarters but closed in positive territory and was 212,000 sq. ft. larger than Q3 2018 net absorption. Year-to-date, 2019 net absorption was the highest seen the market had seen, 10,000 sq. ft. above of the previous record of 2.9 million sq. ft. set in 2015.
Market-wide and Class A vacancy rates ticked up quarter-over-quarter, due mostly to the delivery of vacant speculative space, but remained at historical lows. Compared to Q3 2018, market-wide rates fell by 210 basis points (bps) and Class A by 160 bps.
Class A asking rents rose $0.19 per sq. ft. above Q2 2019 rents and $0.43 per sq. ft. higher than Q3 2018 rents. This marked yet another new record high for Class A asking rents..
Following several quarters of declining, but above average demand, Q3 2019 user demand increased by 950,000 sq. ft. quarter-over-quarter and by 200,000 sq. ft. year-over-year.
Q3 2019 saw the delivery of six spec projects: five new buildings and an expansion. Of the 950,000 sq. ft. of space delivered, more than half was pre-leased.