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U.S. Office Fundamentals Continue to Weaken in Q1 2023
The softening in key U.S. office market fundamentals, seen in Q4 2022, accelerated in Q1 2023. As a result, net absorption remained negative and occupancy losses increased, while vacancy rose at a faster pace, and sublease space hit a new record high
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U.S. Recessionary Concerns Remain at the Start of the Year
The year-end economic indicators exhibited mixed results, with certain factors, such as consumer sentiment and GDP, reflecting signs of growth. However, other factors like consumer sentiment and manufacturing PMI experienced a decline.
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Bulk Activity Exceeds Expectations in 2022
Despite widespread speculation that the U.S. industrial market would see signs of cooling, occupier activity in bulk industrial space outperformed 2021 transactions at the end of the year.
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U.S. Office Market Softens in Q4 2022
Pending a resurgence in demand, vacancy rates and sublease availability are set to continue to rise over the year ahead, placing increased pressure on rents.