The Recovery Is Spreading Geographically
  • 2010: New York and DC comprise 70.0 percent of absorption.
  • 2011: Tech and energy emerge, comprising 52.5 percent of absorption; New York and DC fall to 5.1 percent.
  • 2012: Sunbelt markets grow to over one - third of absorpion, but tech and energy remail dominant (58.2 percent of 2012 absorption); New York and DC both post negative annual absorption.
  • 2013: No sector or region contributes more than one quarter of nnual absorpion, all others contribute 26.4 percent.
  • Source: Jones Lang LaSalle Research

US Economy Is Still Digging Out
  • Consumer confidence is on the rise even though unemployment has not declined noticeably in months.
  • Despite climate vagaries, the U.S. economy remains on solid footing. Both consumer and business balance sheets are at near-record health.
  • The household debt-to-service ratio (includes consumer debt and mortgage loans) is at its lowest level in nearly 35 years. The amount of debt that was suppressing consumer spending in the first three years of the economic recovery has been mostly refinanced or paid down.
  • Real GDP grew by 3.7% in the last six months of last year, the strongest rate of growth in almost two years
  • Sources: BEA,Moody's Analytics, PPR                     

Energy, Tech and Sunbelt Markets
  • Class B absorption has risen in line with Class A rents as tenants seek affordable space options, but Class A has remains the leader in absorption since 2011.
  • Suburban Class A space comprises the majority of absorption, with Class B presence growing.
  • Total vacancy down across building classes and geographies, but with significant variance [suburban Class A vacancy dropped the most dramatically from 2010-2013 compared to other building classes in suburban and CBD].According to CBRE, at the end of 2013 many US office markets were in the rental growth phase and a majority were in the West.
  • Source: Jones Lang La Salle Research