US Office Construction Pipeline Increases

CHICAGO—Economic growth may have gotten a little uneven, but the US office market seems poised for more steady growth in 2016, according to a report on market conditions just released by Colliers International Group Inc. The 2015 Q3 US Office Market Outlook notes that some firms did cut back on production to shrink bloated inventories, and the strength of the dollar reduced exports. But Colliers considers these factors as no more than temporary drags on the economy.

“We anticipate positive momentum in Q4, particularly with the renewed strength in job growth creating added demand in the office sector,” said Cynthia Foster, president of national office services at Colliers, in a prepared statement. GlobeSt.com will provide a more in-depth discussion of the report later this week. “Overall, third quarter market health is encouraging as the national vacancy rate declined 30 bps, a full 70 bps lower than a year prior. The majority of markets are enjoying this growth, with only 20% of metro areas seeing rising vacancies.”