Market Trends
- Vacancy has climbed precipitously behind the second largest construction pipeline in the U.S. The Northwest and Southwest submarkets have provided the lion share of speculative construction deliveries in Q3, combining to total 9.8 million square feet (msf), of which 8.0 msf remains available.
- Net absorption has slowed compared to 2022, through the first three quarters of the year tenants have absorbed 14.2 msf, a 35% decline from the 22.0 msf observed through the first three quarters of 2022. However, despite the slow down the market is on track to record another healthy year of net absorption.
- The two largest deals of the quarter were signed in the Northwest submarket, as FIGS and Parts Town both committed to speculative construction projects at Lexington North at PV|303 and C|303 Glendale, both projected to deliver in the following two quarters.