In the third quarter of 2014, nearly 15.7 million square feet of office space was absorbed, and through the first nine months of 2014, occupancy levels jumped by 38 million square feet (44.0 percent). Not only is growth escalating, but it is dispersing. Ninety percent of markets displayed increased occupancy levels compared to year-end 2013 levels and 88.0 percent of markets posted quarterly occupancy gains for the second quarter in a row. JLL’s Managing Director of U.S. office market research, John Sikaitis, discusses the state of the office market and expectations for the coming months, as of October 2014.
- 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.
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