Cumberland/Galleria experiences its second consecutive quarter of occupancy loss in the final quarter of 2020.
- Cumberland/Galleria experienced -256,741 square feet of occupancy losses in the fourth quarter of 2020.
- Cumberland/Galleria's vacancy rate rose to its highest level in just over a year.
- Leasing activity remained steady throughout the year for the submarket.
- Cumberland/Galleria Class A rental rates increased $0.25/SF year-over-year.
- Anticipated occupancies will lead to a more positive year in 2021 for the submarket.
For a second consecutive quarter, Cumberland/Galleria experienced an occupancy loss, the fourth quarter's totaling -256,741 square feet. This was mostly the result of a number of full-floor vacancies with no significant occupancies to lessen the impact.
Because of the negative absorption, the submarket's vacancy rate rose to its highest level in just over a year. Both property classes have been affected by the increase in vacancy.
Cumberland/Galleria's leasing activity remained steady throughout the year despite the pandemic. Papa John's lease to move its headquarters here was the most significant for the submarket.
Although vacancies have been creeping up here, increases in the average rental rate in the submarket have remained steady throughout the year. The Class A average is up $0.25/SF year-over-year.
The year to come should prove more positive for Cumberland/Galleria given a number of large, anticipated occupancies.