Office market fundamentals continue to shift into more balanced, neutral territory. New deliveries are providing a wider range of options for tenants and greater competition among landlords is pushing up concession packages, even as asking rents continue to climb.
Despite the length of this expansionary cycle, the U.S. economic outlook continues to be favorable. With the recent passing of the Tax Cuts and Jobs Act, GDP growth in 2018 is expected to exceed last year’s increases. This is sustaining strong fundamentals, notwithstanding that supply-side pressures remain elevated.