North America Office market outlook - Q1 2015

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U.S. economic and job growth slowed in Q1 2015 due to poor weather conditions, weakness in the energy industry, and reduced exports. However, we believe that, similar to 2014, growth will strengthen during the rest of 2015, sustaining the office market’s recovery.

The North American vacancy rate was essentially flat, at 12.9% in Q1 2015, as the Canadian vacancy rate was up by a modest 19 basis points (bps) to 8.5%, while the vacancy rate in the much larger U.S. market was unchanged at 13.2%. North American office absorption slowed to 10.2 million square feet (MSF) in Q1 2015, with 10.3 MSF of positive absorption in the U.S. and slightly negative absorption in Canada. However, the real story this quarter was the virtual halt in U.S. CBD absorption, while nearly 10 MSF of absorption registered in the suburban market, in which the recovery has been gaining traction after lagging the CBD market coming out of the recession.

Source : Colliers International

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Mots-clés : Colliers International

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