As highlighted in Colliers’ Q3 2019 U.S. Office Market Outlook, the U.S. office market posted another solid quarter in Q3 2019. Net absorption fell but occupancy remains at a record high and rents continue to inch upwards, despite growth being lower than the prior quarter. Net absorption remains positive and is up by 22% year over year. Occupancy gains remain largely dominated by tech firms, which continue to expand apace.
- Vacancy remains tight: U.S. office vacancy fell slightly in Q3 2019 and stands at a record low despite a fall in net absorption.
- Absorption falls: Net absorption fell in Q3 2019, with suburban markets registering the bulk of any increases.
- Construction reaches a new high: Office construction rose again in the third quarter and has surpassed the peak of the prior cycle by a fair margin.
- Sales volume increases: Office sales volume is down year over year, but pricing has increased.
- Slight increase in rents: Average asking rents increased marginally in the third quarter. Central business district (CBD) markets are showing stronger growth than in the suburbs, where there was only a modest increase.
For more details on the latest office trends, download the U.S. Office Market Outlook. Be sure to also explore the Q3 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.