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Leasing Picking Up Steam as Limited Development
Shifts Expanding Firms to Existing Offices
Improved demand fuels absorption, helping maintain stable vacancy. Less than 300,000 square feet of new office product is slated for completion in 2025 — well below historical norms
— steering tenants toward existing stock and boosting renewal velocity. Stable corporate budgets and expansions in technology and financial services further reinforced leasing momentum, driving net absorption to 2 million square feet in 2024 — the strongest annual total in a decade. Meanwhile, ongoing office-to-industrial conversions keep tightening supply, funneling more firms into discounted Class A or Class B layouts. Landlords dealing with elevated debt pressures are keeping asking rents stable and sweetening concession packages with free rent and tenant improvements to preserve occupancy. Barring a significant change in tenant preference, minimal new supply and continued conversions should hold vacancy near its historical average through 2025.