Cushman & Wakefield report: Timing is money in the U.S. office market
Occupiers seeking to take advantage of “sweet spots” in the U.S. office market may need to move more quickly this time around than during the previous two recessions — the dot-com crash and global financial crisis — according to a recent report published by Cushman & Wakefield.
According to the report, titled Timing the opportunity: U.S. office rent forecasting, in previous recessions, national office asking rents didn’t historically decline until four quarters after vacancy began to increase. While the timeline of rent declines varies by market, there tends to be a consistent pattern, says Cushman & Wakefield.
The current U.S. office market is experiencing this as well, as overall and class A asking rents ended fourth quarter 2020 at all-time highs, with year-over-year increases of 5.6 percent and 3.8 percent, respectively. In the time following the previous two recessions, no U.S. market hit its overall rent trough within a year and only a