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- December 1, 2016: Vol. 28, Number 11

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Slow and steady economic growth drives U.S. office market

by Jody Barhanovich

U.S. office leasing volume totaled nearly 60 million square feet in the third quarter, according to JLL’s third quarter 2016U.S. Office Outlook.

Slow and steady economic 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 near term. Expansionary leases accounted for the largest share of rentals for spaces 20,000 square feet and larger, totaling 47.1 percent.

The JLL report gives five metrics to watch over the next year:

Job openings: Economic growth pushed job openings up by 3.9 percent in September, and labor force participation increased by 10 basis points. Nevertheless, limited slack in the labor market is making it hard for employers to fill job postings.

Sublease space: More sublease space is expected from relocations into new developments, rather than faltering economic conditions. Large development markets — such as D

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