Demand for Flex/R&D space increased in Q3 2020 with over 110,000 sq. ft. of net absorption.
Warehouse/distribution asking rates reached a new record high, closing the quarter at an average of $5.77 NNN per sq. ft. in Q3 2020. This is mainly due to an influx of new Class A product hitting the market with premium rates.
Vacancy increased roughly 160 basis points from 12.6% in Q2 2020 to 14.2% in Q3 2020. Much of this is due to four speculative projects delivering this quarter, adding over 841,000 sq. ft. of vacant space to the market.
13 projects remain underway totaling 1.8 million sq. ft., with the lion’s share stemming from the Northeast submarket.