Key Takeaways

  • Downtown saw a slight drop in occupancy levels in the first quarter, mostly due to move-ins and move-outs cancelling one another out.
  • The 13.8% office vacancy rate still represents a relatively healthy level for the submarket. Given the absence of new supply, existing space will be all that is available to those seeking offices here.
  • Leasing demand for Downtown office picked up in the first quarter. Expansions and new leases were abundant over the past three months, averaging around 10,000 square feet per transaction.
  • Office rents increased for a fourth consecutive quarter. The overall average remains at its highest level ever in the submarket.
  • Given the increase of interest in numerous projects and announcements taking place Downtown, the submarket is expected to see leasing momentum continue over the course of the year. Another solid performance should be in store for the CBD in 2018.