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Market Trends
- Vacancy increased by 50 basis points (bps) over the last year, with net absorption coming in below its fiveyear quarterly average in each of the last three quarters.
- Construction activity is declining, with vacancies rising and demand softening. Just 0.8 million square feet (msf) is under construction, compared to a peak of 5.4 msf in Q2 2022.
- The consumer goods industry accounted for several of the quarter’s largest leases, including a new lease from Lifestyle Furniture for 106,000 square feet (sf) at 725 Rockville Pike.