The average asking lease rate closed Q3 2018 at $0.83 per sq. ft., up by 2.3% since Q1 2018.
At the end of Q3 2018, vacancy increased by 20 basis points (bps) to 1.4%, due to new completions outpacing net absorption.
Diverse demand from distribution and cargo-centered users, such as e-commerce, 3PLs, and importers was strongest during Q3 2018 and pushed year-to-date net absorption to 3.9 million sq. ft.
Developers’ ability to find available land kept construction activity on par with the previous quarter. Persistence by developers to find sites over the last 15 months resulted in over 1.8 million sq. ft. of new deliveries during Q3 2018, bringing year-to-date completions to 5.3 million sq. ft.