Steady leasing activity was not enough to counterbalance the negative net absorption in Q4 2019. As a result, vacancy ticked up 10 bps quarter over quarter to 8.2%.
The leasing momentum achieved in 2019 resulted in 443,780 sq. ft. of positive net absorption. Net absorption turned negative in Q4 2019 due to vacancies by retailers such as Pier I Imports, Fallas, and Office Depot.
The IE’s average asking lease rate increased slightly from $2.11 per sq. ft. in Q3 2019 to $2.12 per sq. ft. in Q4 2019.