Submarket Snapshot_4Q2023_Office_Interactive

SUBMARKET SNAPSHOT CENTRAL BUSINESS DISTRICT

OFFICE 4Q23

CBD MARKET

4Q 2023

3Q 2023

4Q 2022

Inventory (SF)

32,086,025

32,174,750

32,200,334

Under Construction (SF)

704,036

704,036

704,036

Direct Vacancy (all Classes)

22.2%

25.4%

24.7%

Direct Vacancy – Class A

19.6%

22.4%

22.3%

Direct Vacancy – Class B

32.3%

37.2%

34.5%

Sublease Availability

1,891,465

1,896,873

1,836,229

Avg. FSG Direct Asking Rate (all Classes)

$38.89

$39.26

$39.34

Avg. FSG Direct Asking Rate – Class A

$42.67

$42.69

$42.63

Avg. FSG Direct Asking Rate – Class B

$33.35

$34.13

$33.93

Net Absorption – Current Qtr. (SF)

123,848

-359,890

-499,490

Net Absorption – YTD (SF)

-611,227

-1,155,332

-795,442

Leasing Activity – Current Qtr. (SF)

366,385

275,543

409,504

Leasing Activity – YTD (SF)

1,723,752

1,234,255

905,590

RENTAL RATE VS. VACANCY RATE

LEASING ACTIVITY VS. ABSORPTION

(600,000) (400,000) (200,000) - 200,000 400,000 600,000 800,000 1,000,000

10.0% 15.0% 20.0% 25.0% 30.0% 35.0%

$35.00 $36.00 $37.00 $38.00 $39.00 $40.00 $41.00

Direct Gross Rental Rate

Overall Gross Rental Rate

Leasing Activity Net Absorption

Direct Vacancy

Overall Vacancy