Leasing remains healthy as relocations account for a larger share of activity

Leasing activity reached 1.5 million square feet (msf) in Q3, about 0.4 msf above a year ago and slightly above the five-year quarterly average. Relocations accounted for six of the 10 largest transactions, a shift from a year ago when renewals represented eight of the top 10 deals. Amgen's 253,000-square-foot (sf) sale-leaseback in the North Corridor was the quarter's largest transaction, while Sentinel Technologies and Power Construction were among the largest relocations. The O'Hare submarket was particularly active, accounting for four of the 10 largest transactions. The greater share of relocations points to more movement, although vacated space continues to limit the impact of leasing activity on overall availability.

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