US office market statistics, trends and outlook

United States office outlook  - Q2 2019

Leasing activity remains robust as rising concessions and new supply slowly tilt leverage toward tenants.

July 19, 2019

The U.S. office market continued its solid expansion in the second quarter, with sustained leasing velocity and broad-based macroeconomic growth leading to 23.3 million square feet of occupancy gains, a healthy 0.8% increase in asking rents and further demand for new product, with more than 62.1 million square feet of supply to deliver over the next four quarters alone. Tenants will find a more flexible environment opening up over the short term, although the potential for oversupply remains subdued as a pullback in construction starts will scale back the development pipeline gradually beginning in 2021.

Click through the tabs below to compare market performance across key categories.

Rental rates ($)

Asking rents rose by 0.8% over the quarter on aggregate, although faster growth in concessions is eating into effective rents.

Market Rental rates ($)
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YTD net absorption (s.f.)

Expansion into new supply and sustained demand to accommodate headcount growth kept absorption in robust in Q2.

Market YTD net absorption (s.f.)
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Vacancy (%)

Vacancy is on the verge of stabilizing and likely to increase incrementally in the coming quarters.

Market Total vacancy (%)
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Under construction (s.f.)

The pipeline reached a new high of 113.4 m.s.f. in Q2, but is likely to start decreasing as large-scale developments hit the market in 2020 and 2021.

Market Under construction (s.f.)
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United States office property clock
JLL Office Outlook clock (image)

Source: JLL

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United States office insight - Q2 2019

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