Submarket Snapshot_4Q2023_Office_Interactive

OFFICE 4Q23 SUBMARKET SNAPSHOT SOUTHEAST SUBURBAN

SES MARKET

4Q 2023

3Q 2023

4Q 2022

Inventory (SF)

33,965,892

34,204,853

34,204,853

Under Construction (SF)

10,050

0

0

Direct Vacancy (all Classes)

17.1%

18.9%

18.8%

Direct Vacancy – Class A

18.5%

19.9%

19.8%

Direct Vacancy – Class B

15.4%

17.8%

17.7%

Sublease Availability

1,815,472

1,629,264

1,803,904

Avg. Direct FSG Asking Rate (all Classes)

$28.23

$28.26

$28.21

Avg. Direct FSG Asking Rate – Class A

$31.11

$30.68

$30.78

Avg. Direct FSG Asking Rate – Class B

$23.58

$24.16

$24.02

Net Absorption – Current Qtr. (SF)

68,633

-118,808

-80,341

Net Absorption – YTD (SF)

-294,977

-709,657

-590,849

Leasing Activity – Current Qtr. (SF)

644,248

269,000

329,687

Leasing Activity – YTD (SF)

2,524,442

1,682,331

1,413,331

RENTAL RATE VS. VACANCY RATE

LEASING ACTIVITY VS. ABSORPTION

(1,000,000) (500,000) - 500,000 1,000,000 1,500,000

$25.00 $26.00 $27.00 $28.00 $29.00 $30.00

10.0% 14.0% 18.0% 22.0% 26.0%

Direct Gross Rental Rate

Overall Gross Rental Rate

Leasing Activity Net Absorption

Direct Vacancy

Overall Vacancy