CHICAGO—The US office market remained vigorous in 2017 with occupancy staying at peak levels and rents holding firm, according to a new report from Colliers International. The vacancy rate has been quite low for an unusually long stretch of time, and experts say the economy will most likely generate enough demand to sustain that dynamism even longer.
“We are in new territory,” Stephen Newbold, Colliers' national director of office research, tells GlobeSt.com. “Normally, we see dramatic ups and downs,” but by the end of 2017, the vacancy rate had been static for eight successive quarters as supply and demand were in relative balance. It fell 30 bps in the fourth quarter to just 12.0%, or marginally lower than the level seen at the peak of the previous cycle.
As reported in GlobeSt.com, tech-oriented tenants have played a key role. Strip out this sector, Newbold says, and the overall picture would look quite different. Law firms continue to downsize, at least in terms of their office footprints, and while those in finance may be expanding headcounts, many still have empty spaces they can expand into.
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Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
