Positive Movement for Both Sectors
While positive absorption is struggling to resurface, clear positive momentum is happening. Although citywide net absorption was negative 70,505 SF this quarter, it still represents an 80% improvement over the previous quarter. On a year-over-year basis, absorption increased by approximately 785,500 SF.
Hot Tenant Demand Encourages High Rents Despite Vacancy
Leasing activity in the city remained strong, with 2.6 million SF recorded during the quarter, bringing the year-to-date total to 5.2 million SF. This marks a 67% increase over the halfway mark of 2024 and puts the city at pace for its highest annual leasing volume since 2019, when 9.3 million SF were recorded.
Investment Volume Scarce but VC Funding Active
Investor activity was notably strong in Q2, with eleven recorded transactions totaling 2.4 million square feet and $398 million in sales volume. This figure significantly outperforms previous quarterly totals by an average of $282 million and represents the highest recorded sales volume in the past three years.
