Market Trends
- Vacancy, up 210 basis points (bps) year over year, observed a bounce back quarter of net absorption following the -1.7 million square feet (msf) posted in Q1. Leading the way was Maersk, backfilling 1.1 msf vacated by TJX in the Southeast submarket.
- Despite positive quarterly net absorption, bulk occupier move-outs persisted as Honeywell/Neovia vacated 845,000 square feet (sf) in the Madison submarket and Zulily vacated 737,000 sf in the Southeast.
- Vacancy spikes from speculative deliveries is nearly over, as the current construction pipeline counts 2.8 million square feet (msf) of speculative and available projects. If delivered fully vacant, vacancy will move just one percentage point from the additional supply.