Key Takeaways

  • Cumberland/Galleria’s second quarter was highlighted by HD Supply’s occupancy into its new headquarters building. The industrial distributor relocated from Cumberland Center II to the new 22,000 square foot office at Encore Center.
  • The move by HD Supply helped push absorption into positive territory this quarter; despite large vacancies by AEO, GE, and the Weather Channel hitting the market.
  • Vacancy rose 0.4% in the Cumberland/Galleria submarket. This is mostly due to net absorption being lower than the total amount of square feet added this quarter.
  • The overall average rental rate for the submarket increased yet again this quarter; however, Class A rates remained relatively flat.
  • Occupancy gains are expected to continue through the end of the year in Cumberland/Galleria. Though some large spaces are expected to become available, overall office leasing is steady.