Lease rate growth slowed with only a 2.7% year over year increase from $2.58 per sq. ft. in Q2 2019 to $2.65 per sq. ft. in Q2 2020. The quarterly rental rate grew by $0.05 per sq. ft. in Q2 2020 as compared with Q1 2020.
Leasing activity was significantly reduced by more than 72% year over year, due to increased uncertainty in the market.
Vacancy increased 20 basis points (bps) from 3.8% in Q1 2020 to 4.0% in Q2 2020. Year over year (YOY) increase was 6% (from 3.4% in Q2 2019) mainly due to big box departures like Toys R Us, Sears, Macy’s, Lowe’s, Orchard Hardware Supply, etc., within the last 12 months.