In this article, we examine the current context of the U.S. office market and highlight the key performance indicators in the second quarter of 2019.

The U.S. office market posted a solid second quarter. Occupancy and rents held firm at cycle highs and net absorption and sales volume bounced back. Demand remains largely dominated by tech and coworking firms. Tenants continue to focus on leasing the best space in order to attract and retain talent. Class A space accounted for 90% of second-quarter absorption. Construction has reached a record high. Any supply concerns remain localized and submarket specific. Sales volume increased and suburban markets continued to see the greatest share of capital being placed.

Vacancy Remains at a Record Low

Rents are Holding Firm

 Absorption Bounces Back

  Construction is Still Rising

Uptick in Sales Volumes

For more insights, check out our Q2 2019 Top Office Markets Report and stay tuned for our Q2 2019 Office Market Outlook Report, to be published soon.

About the author:

Stephen is the National Director of Office Research for Colliers International, where he focuses on analyzing office property trends, compiling Colliers’ thought leadership and delivering timely market projections to provide clients with a leading edge in our industry.