The third quarter of 2023 in the Suburban and Beltline market was quite slow in comparison to the activity reported in the previous two quarters, with net absorption totaling only 35,101 square feet.
- Overall vacancy decreased once again continuing the positive sentiment being experienced this year, with vacancy reducing to 22.55%. The reduction in vacancy can largely be attributed to a handful of sizable leases completed, coupled with movement among numerous smaller tenants.
- The combined beltline and suburban vacancy rate quarter-over-quarter decreased 12 basis points (bps) from 22.67% to 22.55%, demonstrating that there was a lower amount of deal velocity throughout Q3.
- The tightening of the availability of move-in ready office space has created a conversation around construction costs and building space out to meet the needs of tenants.