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New York, N.Y. — Nov. 11, 2014 – Commercial real estate services firm Cushman & Wakefield has released its 2015-2016 Global Office Forecast. The report tracks current and anticipated Class A office market trends in The Americas, Asia Pacific, and Europe.
“From a global perspective, 2014 was a stronger year for the office real estate sector, with many markets heading into 2015 on solid footing,” noted Maria T. Sicola, who heads Cushman & Wakefield’s Research for the Americas group.
“Of course, some markets in or near areas of political instability and those with stalled economic growth continue to struggle; but overall, things are in better shape than they were 12 months ago.”
As the North American market bright spots, U.S. cities are experiencing economic expansion – even beyond those dominated by the robust technology and energy sectors – which is translating into strong office market fundamentals.
“Demand, particularly for newly constructed or refurbished space, is on the upswing,” Sicola said. “While rental growth has moderated in some markets, more than 80 percent of the locations in the study will experience rent growth exceeding inflation.”
The changing workforce presents a significant driver of the U.S. office market recovery. “The millennial generation is exerting its influence on where it wants to work,” Sicola said. “Atlanta, Chicago and Dallas are experiencing increased leasing velocity and have joined the ranks of San Francisco, Seattle, Boston, New York, and Houston with respect to improved fundamentals.”
The Canadian office market continues along a path of recovery as well. Strong demand in Toronto is ushering a new era of growth; 5.1 million square feet of new space will come online through 2017. In Montreal, the Deloitte Tower will rise, while Calgary and Vancouver both will see new supply come online as well. Consolidations and densification remain the norm in most Canadian markets, while the flight to quality is creating vacancies in some older office stock.
