Healthy Demand and New Supply Keep Office Markets on Par

  • U.S. office market conditions continue to favor owners, as healthy demand chips away at availability despite five consecutive quarters of completions exceeding 10 million sq. ft.
  • Cyclical-high completion rates have caused rent growth to decelerate over the past year, especially in owner-favorable markets such as Manhattan, San Francisco, San Jose and Seattle.
  • The technology and financial services industries remain the leaders in current and anticipated office leasing activity.
  • Many of the tenants actively seeking space are in the South and the West, where office-using job growth has been particularly strong.