Big Box Development Activity Picks Up, Vacancy Falls
New leases totaled 4.1 million square feet among 19 new leases signed in big box buildings during the second quarter of 2018, the greatest quarterly new leasing volume since 2016. This activity pushed the big box vacancy rate down for the second consecutive quarter to 9.04 percent. This rate is 60 basis points below the 9.64 percent rate recorded at the end of 2017, but well above the 7.71 percent rate recorded during the second quarter of 2017.
Net absorption was nearly equal to last quarter, totaling 3.5 million square feet between April and June. Significant new leasing activity, combined with the completion of two build-to-suit projects and one big box user sale outpaced the effects of four vacant speculative construction projects totaling 2.1 million square feet being delivered during the quarter.
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