U.S. office rental market looking up

Office rents and absorption will rise nationwide over the next two years in urban and suburban business districts, according to Cushman & Wakefield’s office market forecast released today. Though office rents remain low in the U.S., the report determined that a lack of new supply coupled with rising demand will force rents upward in half of all central business districts — or urban business centers — by 2013. Suburban office vacancies will decline between now and 2013, but at a slower rate than those of central business districts. Almost half of all suburban markets will see office rent declines between now and 2013, and five areas — including Miami — will see office rents dip below 2010 bottoms. And while 2010 saw just 2.2 million square feet absorbed in cities, by 2012 that number should grow more than six-fold to 13.9 million square feet.

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New York City will lead the charge, along with Washington D.C., Boston, Seattle and Chicago, as those areas will combine to account for nearly two-thirds of that space. TRD