Net absorption surged in Q4 2017, surpassing one million sq. ft. In total, 1,716,603 sq. ft. was net absorbed in 2017.
The overall vacancy rate decreased sizably quarter-over-quarter, dropping 40 basis points (bps) to 3.9%. Vacancy and availability rates are now at a post-recession lows.
Average asking rates for low-finish product increased quarter-over-quarter by $0.03 to a post-recession high of $0.90 NNN. High-finish product increased $0.05 quarter-over-quarter to $1.43 NNN, also a post-recession high.
Construction activity continued to boom relative to recent years as eight new buildings broke ground in Q4 2017. Overall construction activity totals more than 3.4 million sq. ft. as of year-end 2017, a post-recession high.