Slow and steady economic growth drives U.S. office market
U.S. office leasing volume totaled nearly 60 million square feet in the third quarter, according to JLL’s third quarter 2016 U.S. Office Outlook.
A slow and steady economy growth has helped lead the U.S. office market’s trajectory over the past several years, and JLL does not expect that to change over the next term. Expansionary leases comprised the largest share of 20,000-square-foot-and-larger leases at 47.1 percent.
JLL predicts U.S. office occupancy should continue to expand as long as employment continues to grow. While labor market volatility has increased during the past six months, employment has continued to grow, with more than 2.4 million jobs added over the past 12 months.
Regarding construction, primary markets welcoming new supply are nearing an inflection point as supply begins to catch up to demand. With more than 60 percent of the 105 million-square-foot development pipeline expected to deliver by the end of 2017