Colliers: Global Office Markets Reach for Equilibrium

SEATTLE-According to a new Global Office Report by Colliers International, rebounding global markets are aiming for a state of economic supply and demand equilibrium after weathering challenges in China, the U.S. and Europe. While some markets may still be sluggish, the majority are experiencing more stability than they have in some time.  “Office markets around the world have survived the challenges of a slowing Chinese economy, a mixed American recovery, and a European market that is still finding its economic footing,” said James Cook, director of research at Colliers. “Now, for the first time in several years, we’re experiencing balance on a global level.” Colliers experts point to several key trends in 2013 that underscore this search for equilibrium: United States and Canada: Strength in the ICEE (intellectual capital, energy and education) markets will remain the primary driver of office-using employment growth through this year, with the vacancy rate improving to nearly 14% in the first quarter of 2013, dropping for the fifth consecutive quarter. Meanwhile a strong rebound in the for-sale housing market is poised to benefit U.S. suburban office markets in 2013 a variety of service providers open offices and resume hiring to cater to new developments, particularly in hard-hit markets like Phoenix, Las Vegas and parts of Florida.

Mexico City:  Office development is strong, with 20 new buildings developed in 2012, 54 more under construction in the first quarter of 2013, and a 17% increase in absorption. In the next five years, Mexico City’s office inventory is expected to increase by about 3.2 million square feet, but with a stable vacancy rate, the market should have enough absorption to fill the new properties.