Year to date, absorption amounted to more than 5.31 million sf, 70% of last year's record. Another record is the decline in the overall vacancy rate, only 2.7% at mid-2000, the lowest ever. A year ago at this time, the rate was 3.2%. Chantilly is the only submarket here where the vacancy rate has risen, to 11.2%, the report says.
In addition, Q2 construction starts amount to 4.8 million sf, the highest since 1997. During this period, 900,000 sf was delivered, 43% of it pre-leased, compared to 2.9 million sf in the first quarter of 2000, 82% pre-leased. Delta projects that as this new supply comes to market vacancy rates will rise to 6% to 7% by the end of next year.
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