General market trends remained depressed to close out the year, with little change from the previous quarter. Vacancy rates fell a negligible 0.8% over the quarter to 17.5%. Overall asking rates remained nearly flat, averaging $77.23 per square foot over the quarter. Net absorption remained negative with 260.5 KSF of negative absorption over the quarter despite large move-ins from Figma, Afterpay, and Asana.
On average, costs and lead times for TI buildouts have substantially increased due to inflation, labor shortages, and supply chain constraints. It will be important, moving forward to keep this in mind throughout the leasing process. It is expected that the supply chain issues should take nearly two years to return to normal. Companies with confident insights into their future can take advantage of current market conditions while companies who are unsure of the future of their footprint are stuck in a holding pattern.