Leasing volume saw a sharp 45.1% decline in Q4 vs. the prior quarter, bringing YTD volume to 0.6% below 2024 levels. New deliveries totaled 688,695 SF this quarter; YTD completions of ~4.9M SF represent an 8.7% decrease from the prior year.

SALES TRENDS

Sales volume rose 6.1% in Q4, contributing to a significant 23.9% YTD increase over last year, reflecting a narrowing gap in pricing expectations. The average cap rate compressed to 5.2%, an 80-bps drop from Q3 and 40-bps below Q4 2024.