Research

United States Q2 2018 office outlook

Growing competition among landlords for tenants and steadily rising vacancy are compressing effective rents

The U.S. office market maintained steady growth in Q2, with sustained occupancy and rent growth and a healthy supply pipeline that will provide further options for tenants. Although the pace of occupancy gains (12 million square feet year-to-date) slowed from peak levels and rising concession packages put pressure on net effective rents in select markets, solid macroeconomic and employment growth have bolstered both leasing demand and investment sales activity in the office sector.

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