Low vacancy & strong demand favor owners
- U.S. office market conditions continue to favor owners, as vacancy decreased by 10 basis points to 12.8% in Q3, the lowest level since 2007.
- Although downtown completions have slowed, suburban construction remains robust, driven by owner-favorable markets like Dallas/Ft. Worth, Orange County and Baltimore.
- The technology, business services and financial services industries remain the leaders in leasing activity year-to-date, with technology’s share of total leasing up significantly from 2017.
- Sixty percent of the active users in the market are concentrated in the East and the West, with financial services tenants in the East and technology tenants in the West currently looking for the most space.