Healthy U.S. Office Market Performance in Q2 2019
As highlighted in Colliers’ Q2 2019 U.S. Office Market Outlook Report, even though the U.S. office market had a quiet start to 2019, occupancy remains at a record high. Rents have surpassed previous cyclical peaks in several markets. Although net absorption and sales volume were down, this is common for most first quarters. The amount of office space under construction is at its highest-ever level.
- Vacancy remains tight: U.S. office vacancy held firm in Q2 2019 and remains at a record low.
- Sales volume increases: Office sales volume is up year over year. Cap rates and pricing are holding firm.
- Absorption rises: Net absorption almost tripled in Q2 2019 with CBD markets registering gains after a fall-off in Q1 2019.
- Construction reaches a new high: Office construction rose again in the second quarter and has surpassed the peak of the prior cycle by a fair margin.
- Rents rise on premium space: Average asking rents held steady in the first quarter but some central business district (CBD) markets are recording new rental highs on the best space. There was a modest increase in suburban rates.
For more details on the latest office trends, download the U.S. Office Market Outlook. Be sure to also explore the Q2 2019 update to Your Market Insights Hub | U.S. Office, which presents the latest data and forecasts in a detailed, interactive format – including a new metro map feature.