Market Trends
- Quarterly net absorption fell to 19,102 square feet (sf) from 795,395 sf in Q2 2026. Vacancy rose to 9.0% while average monthly asking rents declined to $1.29 per square foot (psf), reflecting a continued softness in the market.
- South County accounted for all 612,240 square feet (sf) of Q3 deliveries and recorded the county’s highest vacancy rate at 14.3%. Construction declined to 0.6 million square feet (msf), potentially easing future supply pressures.
- Four of the quarter’s notable leases were renewals, led by Northrop Grumman’s 223,000-square-foot (sf) commitment in Central County, suggesting tenants are retaining existing space rather than expanding.