CBRE Q1 2017 U.S. Office MarketView Snapshot: New Supply Drives Increase in Vacancy Rate
•Office-using employment increased by 129,000 jobs in Q1 2017, more than double the number in Q4 2016 when job growth lessened likely due to election-related uncertainty.
•Overall net absorption totaled 7.2 million sq. ft., reflecting continued steady demand.
•Developers completed nearly 12 million sq. ft. of space, the second-highest quarterly total since 2009.
•The overall office vacancy rate ticked up by 10 basis points (bps) to 13.0% due to the increase in new supply.
•Gross asking rent growth slowed to an annual rate of 4.9%, dropping below 5% for the first time since Q3 2015.