Suburban office is seeing a resurgence, according to Marcus & Millichap’s 2020 North American Investment Forecast for the office sector. Between 2009 and 2019, suburban office vacancy fell 340 basis points to 13.4 percent, while CBD office vacancy fell 220 basis points to 12.7 percent, narrowing the spread between the two asset classes to 70 basis points.

The strongest declines in suburban office vacancy have been in markets with robust job and population growth, especially those with a strong tech presence. Suburban office markets with a more than 800 basis point drop in vacancy over the past decade include Austin; Charlotte, N.C.; Phoenix; and San Jose.

Marcus & Millichap notes: “Core downtown locations remain in demand, but the aging millennials entering their early 30s are beginning to transition with major life milestones such as marriage and family formation. These shifts are spurring demand for suburban workplaces, particularly in areas conn