MARKET TRENDS
- Vacancy increased 350 basis points (bps) from one year ago; Northern Delaware’s vacancy rate increased 250 bps to 6.7% due to 1.2 million square feet (msf) delivering unleased and, therefore, unoccupied.
- The overall average asking rent increased from the first quarter of 2023 by 6.7% to $12.08 per square foot (psf); landlords of new developments are not discounting asking rents and will use concessions to attract tenants.
- Metro construction deliveries decreased by 25.0% from one year ago to 2.1 million square feet, while properties under construction fell 58.0%; expect regional construction starts to further slow in the coming year with fewer large requirements.