Big-Box deliveries picked up in Q2, after an unusually slow Q1. Seven properties totaling 3.5 million square feet were delivered, almost double last quarter’s total. Deliveries YTD are 5 million square feet behind the half-year mark in 2017. Pre-leasing activity is still healthy; delivered properties were 60% leased as of quarter end.
Vacancy declined 0.6% from the previous quarter and is down 1% from the prior year. Sublet space on the market continues to be high at 1.5 million square feet. Expect vacancy to continue its downward trend for the rest of the year, as e-commerce demand is strong and deliveries this year are expected to total 15 million square feet, almost 6 million square feet less than 2017.