DALLAS—A strong tech sector and the effects of a robust construction pipeline influenced US office fundamentals during 2017's third quarter, according to Cushman & Wakefield. The commercial real estate services firm's statistics demonstrated that national markets remained stable during the past three months.
“More and more, the office market's fortunes in 2017 are linked to the rise of the tech sector,” said Cushman & Wakefield's Revathi Greenwood, head of research, Americas. “The flow of tenants into new construction is beginning to impact fundamentals in some markets. Developers delivered more than 11 million square feet of office space nationwide during the third quarter. The pipeline of new product is and will remain an important influence on the US office market for the balance of 2017 and beyond.”
Overall, though, the strength of top markets–including Midtown Manhattan and Dallas–was offset by significant negative absorption elsewhere. Out of the 87 markets tracked by Cushman & Wakefield, 27 markets posted a combined total of 5.3 million square feet of negative absorption during the third quarter, a third more than the 3.4 million square feet of negative absorption recorded in the second quarter.
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Lisa Brown
Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.
