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.
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