OFFICE MARKET HIGHLIGHTS:

• Today there is 458,266 SF available for sublease. Although this is high for historical purposes, its dramatically improved from the post covid high of 1,004,476 SF available in Q4 2022 and the 841,829 SF available in Q2 2023.
• The vacancy rate has increased 60 basis points year over year from 6.9% in Q3 2023 to 7.5% in Q3 2024. This increase can be attributed to the following:
  • As current leases expire, available sublease spaces are starting to turn into vacancies.
  • As noted in our last report, medical staffing firms are decreasing their space needs.
• One of the most active tenants in the market is behavioral and development support service organizations. Their needs are very specific, as they require first-floor spaces and restrooms within their suite. As a result, these tenants may not be compatible with every building.
• 42 leases were signed in Q3 2024 while 48 lease were signed in Q2 2024, these are some points to note:
  • There has been a 54% increase in deals above 5,000 SF from Q2 2024 to Q3 2024.
  • The largest lease of the year was signed this quarter. Olsson leased 65,000 SF at Heartwood Preserve.

To read and download the complete report please click here.