The 59,138 sq. ft. of construction projects completed in 2017 was the highest as well.
The post-recession upward trend in vacancy rate halted this year, and a 210-bps decline year-over-year was recorded – the largest year-over-year decline since the recession.
Although the level of positive net absorption this year was not as high as those between 2004 and 2008, it is notable that net absorption has improved every year since 2014, when the market recorded the lowest year-end net absorption of negative 400,000 sq. ft.
Class A and Class B buildings performed well with year-end positive net absorption. This was largely due to existing tenants seeking higher quality spaces.
Vacancy in Class A buildings reached the lowest levels in recent market history at 10.7%.
It is premature to expect significant statistical market improvements, however new large tenant prospects, coupled with increasing office-using jobs gives rise to cautious optimism for the coming year.