U.S. Office Market Statistics: Q1 2014

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Market momentum defined the first quarter of 2014 as fundamentals across geographies tightened, driving occupancy, rents and construction upward. Conditions remain favorable to landlords in the majority of U.S. markets, with tenants having far less leverage particularly across urbanized, core markets in Trophy and Class A space.

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U.S. Office Market Statistics: Q1 2014

  1. 1. Momentum building across and through markets United States Office Review Q1 2014
  2. 2. Market momentum defined the first quarter as fundamentals across geographies tightened, driving occupancy, rents and construction upward.
  3. 3. Pace of the recovery beings to accelerate as most fundamentals demonstrate tightening 2 Source: JLL Research Leasing activity • Q1 posted 58.3 million square feet of leasing activity. • Leasing levels down 4.9 percent from Q4 2013. • Compared to Q1 2013, leasing volume is down 4.1 percent. Absorption • Absorption levels increase, resulting in the 16th consecutive quarter of occupancy growth. • Absorption gains totaled 8.4 million square feet in the quarter and overall in 2013, the highest first-quarter activity seen in the recovery so far. • This quarter’s biggest contributors to absorption were Houston, Atlanta, Silicon Valley, Baltimore, Los Angeles and Phoenix. Vacancy • Vacancy stayed stable at 16.6 percent as new space begins to slowly come to the market despite increased occupancy gains. • Similarly, CBD total vacancy remained at 13.9 percent and suburban total vacancy stayed firm at 18.2 percent. Rents • Tenants have far less leverage across urbanized, core markets, especially in Trophy and Class A buildings. • Rents have now increased in 13 of the past 14 quarters. • Class A rent growth continues to trump Class B rent movement across the board. • Rents growing 1.6 times faster in CBDs than suburbs as the latter see a boost in momentum • Concessions continue to erode and are now at 2008 levels nationally, but rate of decline slowing. Construction • Construction starts no longer dominated by specific geographies. • Most markets will not see new deliveries enter the market until 2015, presenting challenges for large tenants, especially in CBDs.
  4. 4. 36.0 percent of markets report declines in leasing activity; sentiment is evenly split 3 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2011 2012 2013 2014 Up Neutral Down Source: JLL Research
  5. 5. Leasing activity totaled 58.3 million square feet, down 4.9 percent from Q4 2013 4 0 10,000,000 20,000,000 30,000,000 40,000,000 50,000,000 60,000,000 70,000,000 80,000,000 90,000,000 2007 2008 2009 2010 2011 2012 2013 2014 Leasingactivity(s.f.) Source: JLL Research
  6. 6. Although the second consecutive quarter of leasing decline, Q1 2014 fares better than majority of recent first quarters 5 58,252,653 65,224,522 50,241,243 61,609,985 71,966,387 58,110,671 60,769,296 58,292,828 0 10,000,000 20,000,000 30,000,000 40,000,000 50,000,000 60,000,000 70,000,000 80,000,000 Q1 2007 Q1 2008 Q1 2009 Q1 2010 Q1 2011 Q1 2012 Q1 2013 Q1 2014 Leasing activity (s.f.) Source: JLL Research
  7. 7. Outside of top markets, leasing activity relatively even across geographies 6 0 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 NewYork Washington,DC Chicago Boston Philadelphia SanFrancisco LosAngeles NewJersey Denver Dallas OrangeCounty Minneapolis Baltimore Atlanta Tampa Seattle Houston Portland SanDiego Austin Raleigh-Durham Charlotte Detroit SiliconValley FairfieldCounty Phoenix Oakland-EastBay Pittsburgh Jacksonville St.Louis Sacramento HamptonRoads SanFranciscoPeninsula Cincinnati SaltLakeCity Miami Cleveland Columbus Milwaukee FortLauderdale Richmond WestPalmBeach WestchesterCounty Orlando SanAntonio LongIsland Indianapolis Leasingactivity(s.f.) Source: JLL Research 40.0% 19.0% 41.0%
  8. 8. Q1 marks 16th consecutive quarter of positive net absorption and keeps pace with historical averages 7 -1.0% -0.5% 0.0% 0.5% 1.0% 1.5% 2008 2009 2010 2011 2012 2013 2014 Quarterlynetabsorption(as%ofinventory) Source: JLL Research 15-year trailing annual average
  9. 9. YTD absorption represents roughly 20.9 percent of last year’s occupancy gains 8 -4.0% -3.0% -2.0% -1.0% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 YTDnetabsorption(as%ofinventory) Source: JLL Research 15-year trailing annual average
  10. 10. Suburban Class A space comprises the majority of absorption, with Class B presence growing 9 -6,000,000 -4,000,000 -2,000,000 0 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 14,000,000 16,000,000 2010 2011 2012 2013 2014 Quarterlynetabsorption(s.f.) Class A (CBD) Class A (suburban) Class B (CBD) Class B (suburban) Class C (CBD) Class C (suburban) Source: JLL Research
  11. 11. Sunbelt posts 430-basis-point absorption growth, while all of New York’s gains were found in tech-heavy Midtown South 10 Source: JLL Research NYC and DC (*excludes Midtown South) Tech markets (*includes Midtown South) Energy markets Sunbelt All other markets 70.0% 29.7% 6.4% 2010 5.1% 33.5% 19.0% 18.4% 23.9% 2011 5.1% 33.5% 19.0% 18.4% 23.9% 2012 11.1% 21.6% 22.3% 18.6% 26.4% 2013 0.0% 34.2% 23.2% 22.9% 19.7% 2014
  12. 12. …but a far greater number of markets are now contributing to occupancy growth 11 -1,000,000 -500,000 0 500,000 1,000,000 1,500,000 Houston Atlanta SiliconValley Baltimore LosAngeles Phoenix Denver Dallas FairfieldCounty Raleigh-Durham Portland St.Louis Detroit Boston Seattle-Bellevue Charlotte NewYork Columbus TampaBay Chicago WestPalmBeach SanFrancisco Oakland-EastBay SanFranciscoPeninsula LongIsland Cincinnati SaltLakeCity Miami FortLauderdale Jacksonville HamptonRoads Milwaukee SanDiego Sacramento Minneapolis Cleveland Austin Orlando Indianapolis NewJersey Pittsburgh Philadelphia WestchesterCounty SanAntonio Richmond OrangeCounty Washington,DC YTDnetabsorption(s.f.) Source: JLL Research
  13. 13. Energy, tech and Sunbelt markets all posting above-average absorption; energy and tech remain ahead 12 0.2% 0.4% 0.8% 0.6% 0.2% 0.3% 0.5% 1.4% 0.8% 0.2% 0.8% 0.8% 0.0% 0.2% 0.4% 0.6% 0.8% 1.0% 1.2% 1.4% 1.6% YTDnetabsorption(s.f.) Source: JLL Research Energy Tech Sunbelt U.S. average
  14. 14. West Coast leads occupancy gains, but all regions nearly level in terms of absorption, speaking to diversified nature of the recovery 13 -100% -80% -60% -40% -20% 0% 20% 40% 60% 80% 100% 2010 2011 2012 2013 2014 Shareofquarterlynetabsorption East Coast Central West Coast Source: JLL Research
  15. 15. Atlanta and South Florida remain disproportionate contributors, responsible for 53.8 percent of East Coast absorption in Q1 14 Source: JLL Research -10,000,000 -5,000,000 0 5,000,000 10,000,000 15,000,000 20,000,000 2010 2011 2012 2013 2014 Netabsorption(s.f.) Atlanta South Florida Rest of the East Coast
  16. 16. -3,000,000 -2,000,000 -1,000,000 0 1,000,000 2,000,000 3,000,000 2010 2011 2012 2013 2014 Netabsorption(s.f.) Atlanta Chicago Los Angeles Miami Philadelphia Phoenix As diversified markets recover, Atlanta and Phoenix lead the pack 15 Source: JLL Research Atlanta and Phoenix have absorbed a combined 12.2 million square feet since 2010, or 72.6 percent of cumulative total.
  17. 17. Class B absorption over the past four quarters has exceeded all Class B occupancy gains from 2010 to Q1 2013 16 Source: JLL Research 8,676,599 10,564,556 0 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 2010-Q1 2013 Past four quarters ClassBnetabsorption(s.f.) 667,430 s.f. per quarter 2,641,139 s.f. per quarter
  18. 18. …but Class A has remains the leader in absorption since 2011 17 Source: JLL Research Trophy and Class A net absorption 89.0 m.s.f.2011-2014 Class B and C net absorption 22.6 m.s.f.2011-2014
  19. 19. However, it has resulted in Class A’s share of quarterly absorption falling to its second-lowest level during the recovery so far 18 133.5% 93.9% 74.5% 76.3% 295.2% 98.5% 82.0% 78.3% 45.2% 73.4% 63.5% 80.9% 57.3% 0.0% 50.0% 100.0% 150.0% 200.0% 250.0% 300.0% 350.0% 2011 2012 2013 2014 ClassAshareofquarterlyabsorption Source: JLL Research
  20. 20. The same holds true for CBDs, with Class A absorbing slightly less than half of all core space… 19 166.2% 90.4% 88.8% 80.8% 100.0% 106.1% 74.8% 0.0% 88.1% 86.5% 49.6% 92.0% 48.8% 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% 120.0% 140.0% 160.0% 180.0% 2011 2012 2013 2014 ClassAshareofquarterlyabsorption Source: JLL Research
  21. 21. …and while Class A’s share of absorption is higher in the suburbs, it also displays a downward trend 20 116.9% 97.9% 62.3% 75.1% 167.8% 102.5% 84.3% 85.3% 43.2% 73.4% 72.8% 70.3% 61.1% 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% 120.0% 140.0% 160.0% 180.0% 2011 2012 2013 2014 ClassAshareofquarterlyabsorption Source: JLL Research
  22. 22. A variety of secondary markets posted strongest Class B absorption in Q1 2014 21 2.3% 1.6% 1.4% 1.3% 1.2% 1.1% 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% Fairfield County Fort Lauderdale Salt Lake City Austin Atlanta Detroit YTDClassBnetabsorption(%ofinventory) Source: JLL Research U.S. average
  23. 23. Still, Class A continues to trump Class B according to most indicators 22 Source: JLL Research of absorbed space in 2014 has been Class A per square foot difference between Class A and B space… rate at which Class A rates are growing compared to Class B year-on-year difference between Class A and Class B total vacancy
  24. 24. Total vacancy steady at 16.6 percent, in part due to new supply beginning to come to the market 23 15.5% 16.0% 16.5% 17.0% 17.5% 18.0% 18.5% 19.0% 2009 2010 2011 2012 2013 2014 Totalvacancy(%) Source: JLL Research
  25. 25. Still, vacancy levels remain near historical highs 24 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% 20.0% 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 Totalvacancy(%) Source: JLL Research
  26. 26. Total vacancy stable for Class A and B space, down for Class C 25 10.0% 12.0% 14.0% 16.0% 18.0% 20.0% 22.0% 2010 2011 2012 2013 2014 Totalvacancy(%) Class A (CBD) Class A (suburban) Class B (CBD) Class B (suburban) Class C (CBD) Class C (suburban) Source: JLL Research
  27. 27. Industry Real estate footprint Most affected markets State government Contracting California, Illinois, New Jersey Federal government Contracting Washington, DC Media/print Contracting LA, NYC Finance/banking Contracting NYC, Charlotte, Chicago, Palm Beach, Pittsburgh Law firms Contracting (rightsizing) Washington, DC, NYC, SF, Atlanta, LA Consulting Contracting (rightsizing) NYC, Chicago, Washington, DC Accounting Contracting (rightsizing) Chicago, NYC, LA Telecom Stable NJ, Dallas, Atlanta Retail/consumer goods Stable NYC, Atlanta, Los Angeles Education Growing Everywhere Media (digital and TV) Growing Atlanta, NYC, LA, Philadelphia, Washington, DC Green energy/clean technology Growing Pittsburgh, Silicon Valley, Denver Real estate (residential) Growing Southern CA, Nevada, AZ, FL, GA, Carolinas Technology Growing Silicon Valley, San Francisco, Austin, Seattle, Portland, Midtown South NYC, Cambridge, MA Shared office space providers / co-working spaces Growing All markets particularly coastal markets and Chicago Natural gas/oil/energy Growing Denver, Houston, Dallas, Pittsburgh Biotech/pharmaceutical Growing San Francisco, San Diego, NJ/Phil, Boston, RDU Office growth being driven by atypical tenant industries 26 Source: JLL Research
  28. 28. Demographics and technology are driving productivity and utilization and the next evolution of office space use 27 Source: JLL Research 15% space reduction by U.S. law firms and financial services relocating 72% of global CREs plan to aggressively increase density in next 3 years 150 Square-foot-per- employee average target density, down from 225 in 2009 50% of the U.S. workforce was baby boomers in 2010. Gen Y will be 50% by 2020
  29. 29. Many of these changes show stark pre- and post-recession contrasts 28 Source: JLL Research Floor plates Floor plates are up from 25,000 square feet before the recession to 60,000 square feet. Personal space Before the recession, employees had around 300 s.f. per person; now they have 200 s.f. Interaction Employees have gone from rarely running into others to a nine-in-ten chance of bumping into a coworker. Building features Aesthetic and building features such as increased roof heights and floor-to-ceiling windows are “in.”
  30. 30. And, as a result, law firms are shifting 29 Source: JLL Research 15.2% Giveback by law firm across the U.S. when relocating 20.5% Giveback by law firm across the top seven U.S. markets when relocating 24.7% Giveback by law firm across DC when relocating • Going digital • Elimination of law libraries • One-sized fits all office • Higher administrative ratios • Migration to glass boxes • Migration to long and lean • Migration to smaller floorplates
  31. 31. Consulting and accounting are shifting 30 Source: JLL Research 25.0% Giveback by consulting firms across the U.S. when relocating 225 s.f. Average space per consultant in years past 90 s.f. Average space per consultant in the most efficient firms today • Benching • Work flexibly and client officing • Offices gone, collaboration rooms in • Increasingly looking at new construction to meet efficiency standards • Industry giving back most space
  32. 32. Technology companies are shifting 31 Source: JLL Research 22.0% Percent increase in high-tech service jobs since 2009 14.2% Total vacancy in core tech markets, compared to 16.6 percent nation-wide 11.2% Growth in core tech market rents in 2013 • Benching is standard • Less personal space, more shared and amenity space • “Open hangar” design preferred • Migration to Class B+ with character • Space viewed as core to culture • Remote work is waning
  33. 33. Banks are shifting 32 Source: JLL Research 10.1% Give-back by average bank across the U.S. when renewing (flat headcount) 86.0% Percent of banking transactions that no longer need a teller 66.0% Percent of surveyed banks planning to reduce CRE footprint • Regulation and cost pressures forcing portfolio consolidation • Offices shrinking • Business units competing • Branch reductions common • Increasing importance of back office (second- and third-tier markets) • Remote working increasing
  34. 34. Even the federal government is shifting 33 Source: JLL Research 170 s.f. Target utilization rate per employee for federally leased space $1.7 billion Amount spent annually by the GSA for properties deemed underutilized 15.9% Average give-back by GSA across Metro DC in FY 2013 • Telecommuting • Benching • Co-locations • Minimal funds to implement • Consolidations in low cost buildings/submarkets • Migration to off-center locations • Disposition of underutilized assets.
  35. 35. Slower growth in office-using employment mirrored in stalling vacancy decline 34 15.5% 16.0% 16.5% 17.0% 17.5% 18.0% 18.5% 19.0% 26,500 27,000 27,500 28,000 28,500 29,000 29,500 30,000 2011 2012 2013 2014 Totalvacancy(%) Office-usingemployment(thousands) Office-using employment (thousands) Total vacancy (%) Source: JLL Research
  36. 36. CBD and suburban vacancy remain unchanged at 13.9 and 18.2 percent, respectively; CBD approaching historic norms 35 5.0% 7.0% 9.0% 11.0% 13.0% 15.0% 17.0% 19.0% 21.0% 23.0% Totalvacancy(%) Source: JLL Research
  37. 37. Sublease space stable at 54.4 million square feet, declines marginally as vacancy remains same in Q1 36 30,000,000 40,000,000 50,000,000 60,000,000 70,000,000 80,000,000 90,000,000 100,000,000 2009 2010 2011 2012 2013 2014 Subleasespace(s.f.) Source: JLL Research
  38. 38. Marketed rents increase 1.2 percent, registering their 13th straight quarter of increases and second-highest growth during recovery 37 -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 2008 2009 2010 2011 2012 2013 2014 Quarterlyrentgrowth(%) Source: JLL Research
  39. 39. Rental growth fastest in CBD Class A (+2.2 percent year-on-year) space, driving national increases 38 $15.00 $20.00 $25.00 $30.00 $35.00 $40.00 $45.00 $50.00 2010 2011 2012 2013 2014 Averageaskingrents($p.s.f.) Class A (CBD) Class A (suburban) Class B (CBD) Class B (suburban) Class C (CBD) Class C (suburban) Source: JLL Research
  40. 40. U.S. office market moves farther along the clock as more markets shift into landlord-favorable territory 39 Source: JLL Research Peaking phase Falling phase Rising phase Bottoming phase Austin, Seattle-Bellevue Dallas, San Francisco Peninsula Columbus, Long Island, Orlando Miami, Philadelphia, Portland, San Diego Chicago, Cincinnati, Cleveland, Fairfield County, Milwaukee, Minneapolis, Oakland-East Bay, Raleigh-Durham, Richmond, San Antonio Charlotte, Detroit, Hampton Roads, Phoenix Sacramento, St. Louis, Westchester County Salt Lake City, Tampa, United States Houston Baltimore, Fort Lauderdale, Washington, DC West Palm Beach Indianapolis, Los Angeles, Orange County Boston, Denver New York, Pittsburgh San Francisco, Silicon Valley Atlanta, Jacksonville New Jersey
  41. 41. Faster rent growth in CBDs contributing to faster movement along clock 40 Source: JLL Research Peaking phase Falling phase Rising phase Bottoming phase Austin, Houston Charlotte, Cincinnati, Cleveland, Dallas, Detroit, Milwaukee, Raleigh-Durham Miami, Seattle CBD Downtown (New York), Hampton Roads, San Antonio Greenwich CBD, Indianapolis, Portland, Salt Lake City, Stamford CBD Columbus, Fort Lauderdale, Richmond, San Diego, Washington, DC Baltimore, Sacramento Chicago, Minneapolis West Palm Beach Atlanta, Jacksonville, Philadelphia, Tampa, United States Boston, Midtown (New York), Pittsburgh Los Angeles, Oakland CBD, Orlando, White Plains CBD Midtown South (New York) San Francisco Denver, San Jose CBD Phoenix, St. Louis
  42. 42. Suburban markets still struggling with elevated vacancy, with more submarkets still at the bottom of the cycle 41 Source: JLL Research Peaking phase Falling phase Rising phase Bottoming phaseAustin, Pittsburgh Dallas, Silicon Valley Indianapolis, Jacksonville, Long Island (Nassau), Orange County, Portland (Westside), United States Long Island (Suffolk) Chicago, Columbus, Detroit, Miami, Northern Delaware, Portland (Eastside), Raleigh-Durham, Seattle Cincinnati, Cleveland, Minneapolis, Oakland-East Bay, Sacramento, San Antonio Salt Lake City Atlanta, Baltimore, Boston, Lehigh Valley, Milwaukee, Philadelphia, Portland (Vancouver), San Diego, St. Louis Houston Charlotte, Fairfield County, Hampton Roads, Phoenix, Westchester County Central New Jersey, Fort Lauderdale, Northern New Jersey, Orlando West Palm Beach Denver, Richmond, Tampa Cambridge, San Francisco Los Angeles San Francisco Peninsula Bellevue CBD Northern Virginia, Suburban Maryland Southern New Jersey
  43. 43. CBD rent growth jumps faster than suburban, remains more volatile 42 -4.0% -3.0% -2.0% -1.0% 0.0% 1.0% 2.0% 3.0% 4.0% 2011 2012 2013 Quarterlyrentgrowth(%) CBD rent growth Suburban rent growth Source: JLL Research CBD average: 1.0% Suburban average: 0.2%
  44. 44. In turn, faster CBD rent growth results in rent gap widening by $0.38 per square foot in Q1 2014… 43 $20.00 $25.00 $30.00 $35.00 $40.00 $45.00 2010 2011 2012 2013 2014 Averageaskingrent($p.s.f) CBD Suburbs Source: JLL Research $11.36 $15.86
  45. 45. …as did the Class A premium compared to overall rents, which hit a recovery high of $4.97 per square foot 44 $3.00 $3.50 $4.00 $4.50 $5.00 $5.50 2010 2011 2012 2013 2014 ClassApremium($p.s.f.) Source: JLL Research
  46. 46. Concessions wobbling, but overall decline in TI allowances and free months compared to 2012 45 3.5 4.1 5.1 6.1 6.2 5.7 5.5 5.3 5.5 $23.00 $24.00 $25.00 $26.00 $27.00 $28.00 $29.00 $30.00 $31.00 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 2006 2007 2008 2009 2010 2011 2012 2013 2014 TIallowance($p.s.f.) Freemonthsofrent Free months of rent TI allowance ($ p.s.f.) Source: JLL Research
  47. 47. As vacancy falls, so does leverage for tenants and tenant build- out allowances from landlords 46 15.5% 16.0% 16.5% 17.0% 17.5% 18.0% 18.5% 19.0% $26.00 $26.50 $27.00 $27.50 $28.00 $28.50 $29.00 $29.50 $30.00 $30.50 2009 2010 2011 2012 2013 2014 Totalvacancy(%) TIallowance($p.s.f.) TI allowance ($ p.s.f.) Total vacancy (%) Source: JLL Research
  48. 48. New supply coming to market slowly increasing, but still well below historic norms 47 0 20,000,000 40,000,000 60,000,000 80,000,000 100,000,000 120,000,000 140,000,000 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Completions(s.f.) Source: JLL Research Average annual completions
  49. 49. The vast majority of new completions are Class A, with an increasing share in the suburbs 48 0 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 2010 2011 2012 2013 YTD 2014 YTDcompletions(s.f.) Class A (CBD) Class A (suburban) Class B (CBD) Class B (suburban) Class C (CBD) Class C (suburban) Source: JLL Research
  50. 50. Fewer than one-third of markets have no construction underway as development activity jumps to 56.0 million square feet 49 0 20,000,000 40,000,000 60,000,000 80,000,000 100,000,000 120,000,000 140,000,000 160,000,000 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Underconstruction(s.f.) Source: JLL Research
  51. 51. The majority of new construction is now in suburbs rather than CBDs 50 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2010 2011 2012 2013 2014 Shareofconstruction CBD Suburbs Source: JLL Research
  52. 52. 32.0 percent of markets reported an increase in construction starts… 51 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2011 2012 2013 2014 Up Neutral Down Source: JLL Research
  53. 53. …resulting in 11.8 million square feet of starts in the first quarter alone 52 11,843,789 18,490,244 17,558,896 22,251,850 11,818,372 0 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 2010 2011 2012 2013 YTD 2014 Constructionstarts(s.f.) Source: JLL Research
  54. 54. Houston’s development boom dominated national groundbreakings during Q1 of 2014 53 0 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 Constructionstarts(s.f.) Source: JLL Research
  55. 55. A gap of another 15 to 18 months until the next cycle of developments deliver in late 2015 will yield continued market tightening and consistent rent growth exceeding 12 percent around the country through 2015.
  56. 56. COPYRIGHT © JONES LANG LASALLE IP, INC. 2014 John Sikaitis Managing Director – Office and Local Markets Research +1 202 719 5839 John.Sikaitis@am.jll.com Phil Ryan Research Analyst, Office and Economy Research +1 202 719 6295 Phil.Ryan@am.jll.com >> Click to access our complete report on the current state of the U.S. office market

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