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Property market

10

12-month change in total vacancy (bps)

0.9%

​​12-month net absorption (as % of inventory)

1.4%

12-month completions (as % of inventory)

3.1%

12-month rent growth (p.s.f.)

Investment market

$29.5

Investment sales (YTD, billions of $US)

-5.6%

YTD investment sales growth

4.4%

Average cap rate

10

12-month change in cap rate (bps)

  • Demand: Deliveries will boost vacancy, which will drive further growth in concessions.
  • Transactions: One-off transactions lifting office volumes to higher than expected levels.
  • Markets: Share of transactions in primary markets increases but pricing continues to hamper investors' aspirations.
  • Sources of capital: Cross-border investment has normalized, with participation now on par with the prior peak.
  • Sources of risk: Prolonged period of cap rate compression testing investors' ability to achieve desired yield.

U.S. Office cap rate map


Though broader trend of stabilization apparent, select secondary markets starting to show signs of softening in cap rates.


Methodology: Cap rates pertain to JLL’s expected average ranges for Class A assets being priced as of Q1 2018.

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View the complete Q1 2018 U.S. Office Investment Quick Look for more on these latest office trends.