A Flat Summer
The office market experienced a decline in activity during the summer months in the third quarter. With the uncertainty of the return-to-office timeline due to the rising number of Delta variant cases, interest in leasing space has paused. As fewer deals transacted during the third quarter, the total gross absorption registered 226,873 square feet, a 2.4 percent decrease compared to a year ago. Marketwide vacancy increased 206 basis points to 14.8 percent from a year ago, resulting in a net occupancy loss of 37,876 square feet for the quarter. Asking rates decreased 3.6 percent to $2.71 per square foot from the previous year.
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