Saturation nation? Developers to add 68M sf of office inventory in US: report

The deliveries will be the greatest increase of office market since 2008

TRD NATIONAL /
Dec.December 19, 2018 10:20 AM

(Credit: iStock)

The U.S. office market could turn to slosh in 2019, as developers were expected to add 68 million square feet of space this year — the highest increase since 2008.

The massive development could lead to downward pressure on the country’s office rent growth, the Wall Street Journal reported. Citing a Cushman & Wakefield report, the Journal reported office rents have been rising across the U.S. for the past several years. From January through September, that reached an average of $30.95 a square foot, an increase of 2.1 percent compared to the same period in 2017.

“We are moving into greater opportunities for tenants,” Revathi Greenwood, Americas head of research for Cushman & Wakefield, told the Journal. Greenwood added that the vacancy rate is expect to rise to 13.7 percent in 2019 from 13.3 this year.

In Chicago, through the third quarter, downtown office rents stayed flat and absorption slowed, potentially signaling a better environment for tenants.

The new forecast could also temper expectations for Manhattan office condo sales, which has seen a 23 percent price growth over the five-year average to $934 a square foot.  [WSJ] — David Jeans 


Related Articles

arrow_forward_ios

Chicago’s ice-cold office market is finally heating up. But don’t get too excited

An example of roll-off waste management (Credit: YouTube, iStock)

Big building owners prevent city from dumping container-pickup in trash-collection reform

“I can talk about erections all day”: NAR tech consultant’s bizarre fireside chat

California passes landmark rent control law

Council member Vanessa Gibson (Credit: New York City Council)

Commercial landlords face new fines as City Council passes anti-harassment bill

As House begins impeachment inquiry, here’s what we know about Trump’s Ukraine-real estate ties

Embattled Prodigy Network CEO Rodrigo Niño to step down

The Watchtower building at 25 Columbia Heights, CIM Group’s Shaul Kuba (right) and LIVWRK’s Asher Abehsera (Credit: Wikipedia, CIM Group, and LinkedIn)

JPMorgan leads $335M refi for CIM and LIVWRK’s Watchtower renovation

arrow_forward_ios