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Property market

40

12-month change in total vacancy (bps)

0.9%

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

1.4%

12-month completions (% of inventory)

3.2%

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

Investment market

$123.7

Investment sales (2017, billions of $US)

-12.0%

2017 investment sale growth (%)

4.3%

Average cap rate (%)

flat

12-month change in cap rate (bp)

  • Demand: Office vacancy rises moderately in 2017 as new supply delivered and give-backs increased.
  • Transactions: Office transaction volumes soften to $123.7 billion as the number of trophy sales in
    gateways markets slows.
  • Markets: Secondary markets accounted for an increased shareof transactions due to investors’ need to
    deploy capital and requirement to achieve yield.
  • Sources of capital: Share of off-shore investment holds steady, with more foreign investors targeting secondary markets.
  • Sources of risk: Value add liquidity remains elevated and is being productively deployed.

U.S. Office cap rate map


Primary and secondary market Class A office cap rates stabilizing amid normalized transactions activity.


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

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Download the report

View the complete H2 2017 U.S. Office Investment Outlook for more on these latest office trends.