OFFICE MARKET HIGHLIGHTS:

• Q2 was the second quarter in a row of negative absorption (98,943 SF) for a combined total of negative 263,088 SF (Q1 & Q2) on the year. The two biggest contributors of this stat are Intrado and CSG moving out of their office spaces.
• The vacancy rate continues to decrease. At the end of Q2 the vacancy rate is 8.53% compared to a year ago Q2 2021 when it was 9.92%. Note that this vacancy rate does not account for 837,455 SF of available sublease space on the market, due to the fact that rent is still being collected on that space.
• 837,455 SF of available sublease space is the largest figure since we have been collecting data. We are preparing to see more sublease space come onto the market which is challenging for
  landlords but creates more opportunities for users.
• We continue to face the obstacle of companies’ desired lease term vs high construction costs. Employers are still navigating future workplace strategies which impact size and lease-term decisions. With future workplace strategies still uncertain, tenants would like the flexibility of shorter lease terms, but high construction costs emphasize the need for longer lease terms.

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