Rapidly growing tech and creative tenants are finally moving into newly delivered space, leading to a short-term drop in vacancy
October 16, 2019
Fundamentals in the U.S. office market remained solid in the third quarter, albeit with early signs of a slowdown becoming apparent. High-growth tech, creative and life sciences tenants continued to drive occupancy gains, while the coworking sector experienced tapering growth with more friction expected ahead. Despite new supply hitting the market, vacancy currently rests at just 14.2% nationally, while fewer completions led to yet another strong quarter for absorption. Tenants can expect limited availability of top-end options as the flight to quality continues and large-scale occupiers take advantage of effective rent compression and residual space in speculative construction delivering through 2022 and 2023.