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​​U.S. Office investment*
$58.6
Investment sales (H1, billions of $US)
-11.9%
H1 investment sale growth (%)
4.2%
Average cap rate (%)
-13
12-month change in cap rate (bp)
U.S. Office property market*
20
12-month change in total vacancy (bps)
0.7%
​​12-month net absorption (% of inventory)
1.3%
12-month completions (% of inventory)
3.2%
12-month rent growth (per unit, %)
  • Since the second quarter of 2010, office markets posted 29 consecutive quarters of positive absorption.

  • Although construction starts have slowed, new deliveries expected by year-end total roughly 65.9 million square feet, 41.3 percent higher than the 2016 total.

  • Office construction volumes remain flat at 108.8 million square feet with minimal further growth expected this cycle.

  • Volumes made a resurgence this quarter, falling just 3.6 percent year-over-year and reaching $31.5 billion.

  • Of single asset transactions in the first six months of the year, roughly 24.0 percent were joint ventures.

  • Pricing levels remain stable, with market averages for institutional product ranging between 3.6 and 4.9 percent across the primary markets and 4.1 and 7.8 percent across the secondary markets.

 

*Data is from H1 2017 U.S. Office Investment Outlook

U.S. Office cap rate map



Map data is from H1 2017

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