2015 was another robust year for the U.S. office market, and by many measures the best since the recession. All of the key metrics experienced positive growth – increased absorption, occupancy, asking rent, construction and investment activity – with many U.S. markets reaching historical new peaks on multiple counts.
Nearly 40% of the 80 markets Colliers tracks have vacancy rates at or below their pre-recession lows. In addition, absorption in CBDs was the second highest since 2006, though it dipped modestly from 26.5 MSF in 2014 to 24.4 MSF in 2015. Meanwhile, the suburban total of 62.2 MSF was the largest total since 2006. The CBD asking rent ($49.24/SF) is the highest since the third quarter of 2008, and just under the peak of $49.99/SF reached the quarter before that. The $29.00/SF asking rent in the suburbs marks a new peak, eclipsing the $28.75/SF from the first quarter of 2008. On the investment side, cross-border investment fueled nearly 20% of the total volume in 2015, with over $25 billion in investment - surpassing the prior peak of $21 billion in 2006.
Source : Colliers International