U.S. office absorption up slightly during Q2 2019
The current outlook for the U.S. office market indicates that it is likely to maintain a path of methodical growth through the rest of 2019, reported Newmark Knight Frank.
Notably, consensus points to a gradual slowing of the economy over the next two years and suggests that real estate will continue to offer relatively good value for investors on a risk-adjusted basis. Here are some key findings of this report:
Absorption was positive in 42 of the 56 markets tracked by Newmark Knight Frank, up slightly in the second quarter of 2019 compared with the same period in 2018. Additionally, the vacancy rate of 12.9 percent declined 50 basis points from one year ago.
The construction pipeline remains robust at 97.2 million square feet, reaching its highest level of the cycle. Tenants continue to show interest in new, efficient trophy projects, but it remains a challenge