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Office leasing activity hits highest level in two years
- December 1, 2017: Vol. 29, Number 11

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Office leasing activity hits highest level in two years

by Jody Barhanovich

The U.S. office market continued to show strength in the third quarter, as leasing activity surged with tenants finding more options among new and second-generation blocks of space, according to JLL research.

Third-quarter leasing volume reached 62.4 million square feet, the highest figure in more than two years, according to JLL. Leases larger than 250,000 square feet were responsible for much of the activity and totaled more than 10.9 million square feet, accounting for 17.5 percent of all deals completed in the first three quarters of 2017.

The Dallas and Seattle markets were the most active for office leasing, accounting for 35.6 percent of all U.S. growth in the first nine months of the year. Both cities are being driven by hot employment markets.

Despite increased leasing activity, office vacancy has risen for the fourth consecutive quarter as new deliveries outpace absorption. Development is hovering near its cyclical high at 101.4 million square feet but

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