MARKET TRENDS

• Average rental rates saw modest downward pressure this quarter, declining 2.5% year over year as elevated vacancy persists amid ongoing absorption of recently delivered product.
• The rate of vacancy growth has slowed materially as new construction activity has tapered, with vacancy rising just 30 basis points (bps) year over year in 2025 versus a 270-bps increase in the year prior.
• Net absorption finished 2025 at -939,561 square feet (sf), largely driven by Christianbook’s 461,604-sf space at 140 Summit Drive in Peabody becoming fully available in Q4 2025.

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