The metroplex saw its third consecutive quarter of negative net absorption this year, as vacancies continued to outweigh new leases. However, there was a substantial increase in leasing activity in Q4, as absorption was up 77% from Q3.
Occupancy also saw a slight decrease of 30 basis points, ending the year at 92.8%.
The most important stimulus tool is the vaccines that are now being deployed. They will not prevent a difficult winter but should allow for some normalization of activity by mid-Q2 2021.
Presently, we anticipate GDP growth nearing 5% in 2021 with upside risk. The outlook will be uneven across sectors with the travel and hospitality industry likely to operate below potential for some time whilst technology and goods-production should see a quicker path to recovery.