U.S. office sector posts lowest vacancy rate of the recovery

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JLL has released its Q3 2014 United States Office Outlook

Q3USreport_blogOverall, the outlook for the U.S. economy is positive, with businesses continuing to invest more in people and products. Economic momentum is picking up, and tenants are continuing to expand.

On the investment sales side, activity is up 38 percent year-to-date, and investment profiles diversified. Most of the large deal flow was heavily concentrated in New York City and San Francisco.

Finally, office development has been soaring – there is currently almost 73 million square feet under construction, mostly driven by tech and energy industries.

Key findings

  • Vacancy levels dropped below 16 percent for the first time since 2008.
  • Asking rents are up 0.1 percent for CBDs and 2.8 percent for suburban markets year-over-year.
  • Class A and B suburban rents posted highest annual rent growth of 2.6 and 3.1 percent.
  • Construction volumes have jumped 49.4 percent compared to Q3 2013 levels, led by Houston.

Download your copy of the Q3 2014 U.S. Office Outlook for a complete market review, or take a sneak peak on SlideShare (below).