Q3 2016 U.S. Office OccupierView Snapshot

December 7, 2016

  • While overall U.S. office market conditions remain owner-favorable, both downtown and suburban market conditions are gradually becoming more advantageous for occupiers.
  • Overall net absorption slowed to 7.1 million sq. ft. in Q3, down 46% from the prior year and the weakest quarterly total since Q1 2014. The decline stemmed entirely from weaker demand in downtown markets, which posted 1.7 million sq. ft. of negative absorption.
  • The technology industry continued to account for the largest share of total office leasing activity, although the amount of space leased by high-tech tenants in Q3 was markedly lower than during the first two quarters of 2016.
  • The overall vacancy rate is forecast to remain flat at 13% in 2016 and begin to increase in 2017, as new supply comes online.


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