After a record-setting third quarter, substantial move-outs led to negative 756,126 sq. ft. of net absorption in the fourth quarter.
Six new buildings delivered in Q4 adding 337,308 sq. ft. to the base, about one-third of which was pre-leased.
The large volume of newly-delivered vacant space coupled with large move-outs bumped the vacancy rate 50 basis points (bps) quarter over quarter to 4.4%.
The setback in other fundamentals did not negatively impact asking rates. The average asking rate for low-finish product increased $0.01 to $0.95 NNN and high-finish product was unchanged at $1.37 NNN.
Leasing activity was dominated by life sciences, wholesalers and materials manufacturers.