Deliveries amounted to 2.2 million sf, half of which was pre-leased on delivery. Last year, 7.5 million sf was delivered, but only 36% of it was pre-leased, according to Delta. So far this year, rents have risen at about 2.5%, on an annualized basis, although some submarkets are enjoying double those increases.
Major trends here include increased absorption of class A buildings, which began to go up in 1998 after a 15-year lull. Also, less office space is being erected now than in 1998-99, which has tamped fears of overbuilding.
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