Colliers International: Frozenomics Thaw Unfreezes Office Market

| September 11, 2014 | 0 Comments

Colliers International has released its Q2 2014 North American office report, Frozenomics Thaw Unfreezes Office Market in Q2.

A few highlights:

  • The economic and office market recoveries are broadening to include more markets, including many of those hit particularly hard by the housing bust and financial crisis (e.g. Las Vegas, Orange County, Miami). Half of the U.S. metro areas tracked by Colliers have recovered all of the office-using jobs lost during the recession, and more than three-quarters of the North American office markets posted positive absorption in both Q2 2014 and year-to-date 2014.
  • Continuing the trend of recent quarters, the North American vacancy rate decreased modestly, by 15 basis points to 13.36% in Q2 2014, and we anticipate a similar trend during the remainder of the year. Once again, the U.S. vacancy rate decreased, by 21 basis points to 13.72%, and the Canadian vacancy rate increased, by 52 basis points to 8.52%. New supply is contributing to the rise in Canadian vacancies, although the overall vacancy rate remains below the 10% level considered indicative of a balanced market.
  • North American absorption totaled 16.9 MSF in Q2 2014 (17.0 MSF in the US, -83,530 sq. ft. in Canada). In the U.S., the four-quarter trailing quarterly average of more than 17.6 MSF of absorption in Q2 2014 was the highest level during the current recovery. The leading markets in Q2 2014 were Houston, San Francisco, Downtown Manhattan, Orange County, Midtown Manhattan, Atlanta, Dallas, Seattle/Puget Sound, Chicago and Kansas City.

 

You can download the report HERE

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