United States office outlook – Q4 2019

A robust 2019 will be followed by a more subdued, but still healthy, 2020

January 21, 2020

The fourth quarter wrapped up a robust 2019 characterized by sustained tenant demand (particularly from tech), expansion into new supply leading to widespread occupancy gains, continued but cooler rent growth and a robust development pipeline that will extend the current cycle out to 2023. This bump in activity comes at the same time as the foundations for a number of critical changes in the office market take place, which will lead to a 2020 and 2021 with more modest absorption, neutral effective rent growth on average, further new-block options and continued give-backs exerting additional pressure on vacancy in second-generation assets.

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

Rental rates ($)

Asking rent growth slowed once again in Q4 as give-backs of second-generation space intensified.

Market Rental rates ($)
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Net absorption (s.f.)

Year-to-date absorption approached 70 m.s.f. as expanding tenants finally moved into new space.

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

Vacancy rose by 10 basis points on the back of new supply and give-backs, with further increases in 2010.

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

More than 50 m.s.f. of new supply will deliver in 2020 before pulling back markedly in 2021 and 2022.

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 outlook – Q4 2019

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