Key Takeaways

  • The Cumberland/Galleria submarket started the year in negative territory as more space was vacated than occupied in the first quarter. There were few move-ins over the past three months to prop up the amount of space absorbed.
  • Overall vacancy in the submarket increased 0.5% in Q1, and is up 1.2% year-over-year. This is mostly due to the amount of office space delivered in Cumberland/Galleria more than anything else.
  • Landlords remain bullish on quoted rates as rents increased by their highest quarterly amount in two years. Leasing activity continues to be steady from both new and existing tenants. This demand is why rents have continued to trend upwards.
  • Positive activity is expected to return to Cumberland/Galleria next quarter. HD Supply is anticipated to occupy its new 222,000 SF office tower in Q2. In addition, a number of leases signed over the past 6 months are expected to take occupancy next quarter.