Demand for Flex/R&D space increased in Q3 2020 with over 110,000 sq. ft. of net absorption.
Warehouse/distribution asking rates fell slightly quarter-over-quarter from $5.22 in Q2 2020 to $5.12 per sq. ft. in Q3 2020.
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.