Vacancy steadies as flight to quality shapes rent performance
Vacancy ended Q3 2026 at 11.7%, down 20 basis points (bps) year over year and below the 12.0% peak reached in early 2026, even as 2.2 million square feet (msf) of deliveries came online. Asking rents rose 6.0% year over year to $8.53 per square foot (psf), although effective rent growth is more modest as free rent and tenant improvement packages become more common. Modern Class A facilities continue to command premiums while Class B and C buildings are competing through adaptable lease structures and capital investments, such as power upgrades and office build-outs.