November 4, 2016

  • Office market performance in the Americas was mixed in the third quarter of 2016, with healthy office-using job growth in the U.S. offset by a summer slowdown in net absorption and heightened caution ahead of the November election.
  • In Canada, the energy slowdown coupled with high levels of new supply drove up the overall vacancy rate.
  • In Mexico, year-to-date net absorption in Mexico City increased significantly compared with the year-earlier period.
  • U.S. venture capital (VC) funding slowed from the robust pace of 2015 but remained strong, with the Q3 2016 year-to-date total reaching the second-highest level since 2001 and supporting continued tech-tenant demand.
  • In an increasingly competitive labor market, tenants are seeking high-quality space offering ample amenities and located in dynamic live-work-play environments, both in downtown and suburban markets.
  • Despite uncertainty amid political and economic risk factors, we expect solid U.S. office-using job growth to support continued demand for office space through year-end 2016.