Investors return to market while leasing activity increases
With markets across the country continuing to recover and positive economic momentum picking up, corporate confidence has been increasing and higher levels of hiring occurring, according to a third quarter U.S. office sentiment survey conducted by JLL. Creative space, amenities and density are driving leasing activity.
Respondents to the survey stated that 35 percent of the markets during the third quarter were driven by growth. But 99 percent of markets indicate a preference for higher density overall companies. And the preference for creative space is leading landlords to make capital improvements to buildings and build out spec suites.
The increased leasing momentum and tighter fundamentals helped boost sales activity, but markets such as Long Island, N.Y., San Francisco and Tysons Corner, Va., are seeing fewer assets come to market. In approximately 70 percent of markets surveyed, the increased capital is flowing to core suburbs, followed by core CBDs (43