The Darkest Hour is Right Before the Dawn Q1 2023

After five years of breakneck growth across the Eastside, the bloom is off the rose. 2023 kicked off with another rise in vacancy, and ominously the availability rate reached a recent historic high. Eastside vacancy stands at 9.7%, which is up from a cycle low of 5.9% in 2019. The availability rate – the combination of vacancy, sublease and marketed space – is the most relevant leading indicator in a deteriorating market, and currently 20% of the Eastside is listed as available. Landlords will soon be saddled with an avalanche of vacant space.