New leasing activity totaled 264,000 sq. ft. in Q4 2020, a 68% increase from Q3, but 22% behind the five-year quarterly average.
Renewals accounted for 109,000 sq. ft. in Q4, lifting the year-end total to 259,000 sq. ft.
Total velocity (new leases and renewals) reached 373,000 sq. ft. in Q4, raising the 2020 total to 1.63 million sq. ft.—down 25% from the 2019 level.
The availability rate increased 70 basis points (bps) from the previous quarter to 22.4% and climbed 160 bps from a year earlier.
Net absorption totaled negative 369,000 sq. ft. during the fourth quarter, bringing the year-to-date total to negative 764,000 sq. ft.
The average asking rent remained virtually unchanged from the prior quarter at $46.99 per sq. ft. but was up 7% year-over-year.
Total available sublease space rose 28% to 1.01 million sq. ft. from Q3 2020 and now represents 9% of all available space. The sublease availability rate rose to 2.1%.