u.s. office market statistics: q1 2014

Momentum building across and

through markets

United States Office Review Q1 2014

Market momentum defined the first quarter as fundamentals across geographies tightened, driving occupancy, rents and construction upward.

Pace of the recovery beings to accelerate as most fundamentals

demonstrate tightening

2

Source: JLL Research

Leasing activity • Q1 posted 58.3 million square feet of leasing activity.

• Leasing levels down 4.9 percent from Q4 2013.

• Compared to Q1 2013, leasing volume is down 4.1 percent.

Absorption

• Absorption levels increase, resulting in the 16th consecutive quarter of occupancy growth.

• Absorption gains totaled 8.4 million square feet in the quarter and overall in 2013, the highest first-quarter

activity seen in the recovery so far.

• This quarter’s biggest contributors to absorption were Houston, Atlanta, Silicon Valley, Baltimore, Los Angeles

and Phoenix.

Vacancy • Vacancy stayed stable at 16.6 percent as new space begins to slowly come to the market despite increased

occupancy gains.

• Similarly, CBD total vacancy remained at 13.9 percent and suburban total vacancy stayed firm at 18.2 percent.

Rents

• Tenants have far less leverage across urbanized, core markets, especially in Trophy and Class A buildings.

• Rents have now increased in 13 of the past 14 quarters.

• Class A rent growth continues to trump Class B rent movement across the board.

• Rents growing 1.6 times faster in CBDs than suburbs as the latter see a boost in momentum

• Concessions continue to erode and are now at 2008 levels nationally, but rate of decline slowing.

Construction • Construction starts no longer dominated by specific geographies.

• Most markets will not see new deliveries enter the market until 2015, presenting challenges for large tenants,

especially in CBDs.

36.0 percent of markets report declines in leasing activity;

sentiment is evenly split

3

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2011 2012 2013 2014

Up Neutral Down


Leasing activity totaled 58.3 million square feet, down 4.9

percent from Q4 2013

4

0

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

70,000,000

80,000,000

90,000,000

2007 2008 2009 2010 2011 2012 2013 2014

Leas

ing

activ

ity (

s.f.)


Although the second consecutive quarter of leasing decline, Q1

2014 fares better than majority of recent first quarters

5

58,252,653

65,224,522

50,241,243

61,609,985

71,966,387

58,110,671

60,769,296

58,292,828

0 10,000,000 20,000,000 30,000,000 40,000,000 50,000,000 60,000,000 70,000,000 80,000,000

Q1 2007

Q1 2008

Q1 2009

Q1 2010

Q1 2011

Q1 2012

Q1 2013

Q1 2014

Leasing activity (s.f.)


Outside of top markets, leasing activity relatively even across

geographies

6

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000N

ew Y

ork

Was

hing

ton,

DC

Chi

cago

Bos

ton

Phi

lade

lphi

a

San

Fra

ncis

co

Los

Ang

eles

New

Jer

sey

Den

ver

Dal

las

Ora

nge

Cou

nty

Min

neap

olis

Bal

timor

e

Atla

nta

Tam

pa

Sea

ttle

Hou

ston

Por

tland

San

Die

go

Aus

tin

Ral

eigh

-Dur

ham

Cha

rlotte

Det

roit

Sili

con

Val

ley

Fai

rfie

ld C

ount

y

Pho

enix

Oak

land

-Eas

t Bay

Pitt

sbur

gh

Jack

sonv

ille

St.

Loui

s

Sac

ram

ento

Ham

pton

Roa

ds

San

Fra

ncis

co P

enin

sula

Cin

cinn

ati

Sal

t Lak

e C

ity

Mia

mi

Cle

vela

nd

Col

umbu

s

Milw

auke

e

For

t Lau

derd

ale

Ric

hmon

d

Wes

t Pal

m B

each

Wes

tche

ster

Cou

nty

Orla

ndo

San

Ant

onio

Long

Isla

nd

Indi

anap

olis

Leas

ing

activ

ity (

s.f.)


40.0% 19.0% 41.0%

Q1 marks 16th consecutive quarter of positive net absorption and

keeps pace with historical averages

7

-1.0%

-0.5%

0.0%

0.5%

1.0%

1.5%

2008 2009 2010 2011 2012 2013 2014

Qua

rter

ly n

et a

bsor

ptio

n (a

s %

of i

nven

tory

)


15-year trailing annual average

YTD absorption represents roughly 20.9 percent of last year’s

occupancy gains

8

-4.0%

-3.0%

-2.0%

-1.0%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

YT

D n

et a

bsor

ptio

n (a

s %

of i

nven

tory

)


15-year trailing annual average

Suburban Class A space comprises the majority of absorption,

with Class B presence growing

9

-6,000,000

-4,000,000

-2,000,000

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

16,000,000

2010 2011 2012 2013 2014

Qua

rter

ly n

et a

bsor

ptio

n (s

.f.)

Class A (CBD) Class A (suburban)

Class B (CBD) Class B (suburban)

Class C (CBD) Class C (suburban)


Sunbelt posts 430-basis-point absorption growth, while all of

New York’s gains were found in tech-heavy Midtown South

10


NYC and DC (*excludes Midtown South)

Tech markets (*includes Midtown South)

Energy markets

Sunbelt

All other markets

70.0%

29.7%

6.4%

2010

5.1%

33.5%

19.0%

18.4%

23.9%

2011

5.1%

33.5%

19.0%

18.4%

23.9%

2012

11.1%

21.6%

22.3%

18.6%

26.4%

2013

0.0%

34.2%

23.2%

22.9%

19.7%

2014

…but a far greater number of markets are now contributing to

occupancy growth

11

-1,000,000

-500,000

0

500,000

1,000,000

1,500,000H

oust

on

Atla

nta

Sili

con

Val

ley

Bal

timor

e

Los

Ang

eles

Pho

enix

Den

ver

Dal

las

Fai

rfie

ld C

ount

y

Ral

eigh

-Dur

ham

Por

tland

St.

Loui

s

Det

roit

Bos

ton

Sea

ttle-

Bel

levu

e

Cha

rlotte

New

Yor

k

Col

umbu

s

Tam

pa B

ay

Chi

cago

Wes

t Pal

m B

each

San

Fra

ncis

co

Oak

land

-Eas

t Bay

San

Fra

ncis

co P

enin

sula

Long

Isla

nd

Cin

cinn

ati

Sal

t Lak

e C

ity

Mia

mi

For

t Lau

derd

ale

Jack

sonv

ille

Ham

pton

Roa

ds

Milw

auke

e

San

Die

go

Sac

ram

ento

Min

neap

olis

Cle

vela

nd

Aus

tin

Orla

ndo

Indi

anap

olis

New

Jer

sey

Pitt

sbur

gh

Phi

lade

lphi

a

Wes

tche

ster

Cou

nty

San

Ant

onio

Ric

hmon

d

Ora

nge

Cou

nty

Was

hing

ton,

DC

YT

D n

et a

bsor

ptio

n (s

.f.)


Energy, tech and Sunbelt markets all posting above-average

absorption; energy and tech remain ahead

12

0.2%

0.4%

0.8%

0.6%

0.2%

0.3%

0.5%

1.4%

0.8%

0.2%

0.8% 0.8%

0.0%

0.2%

0.4%

0.6%

0.8%

1.0%

1.2%

1.4%

1.6%

YT

D n

et a

bsor

ptio

n (s

.f.)


Energy Tech Sunbelt

U.S. average

West Coast leads occupancy gains, but all regions nearly level in

terms of absorption, speaking to diversified nature of the

recovery

13

-100%

-80%

-60%

-40%

-20%

0%

20%

40%

60%

80%

100%

2010 2011 2012 2013 2014

Sha

re o

f qua

rter

ly n

et a

bsor

ptio

n

East Coast Central West Coast


Atlanta and South Florida remain disproportionate contributors,

responsible for 53.8 percent of East Coast absorption in Q1

14


-10,000,000

-5,000,000

0

5,000,000

10,000,000

15,000,000

20,000,000

2010 2011 2012 2013 2014

Net

abs

orpt

ion

(s.f.

)

Atlanta South Florida Rest of the East Coast

-3,000,000

-2,000,000

-1,000,000

0

1,000,000

2,000,000

3,000,000

2010 2011 2012 2013 2014

Net

abs

orpt

ion

(s.f.

)

Atlanta Chicago Los Angeles Miami Philadelphia Phoenix

As diversified markets recover, Atlanta and Phoenix lead the

pack

15


Atlanta and Phoenix have

absorbed a combined 12.2

million square feet since

2010, or 72.6 percent of

cumulative total.

Class B absorption over the past four quarters has exceeded all

Class B occupancy gains from 2010 to Q1 2013

16


8,676,599

10,564,556

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

2010-Q1 2013 Past four quarters

Cla

ss B

net

abs

orpt

ion

(s.f.

)

667,430 s.f. per quarter 2,641,139 s.f. per quarter

…but Class A has remains the leader in absorption since 2011

17


Trophy and Class A

net absorption

89.0 m.s.f.

2011-2014

Class B and C net

absorption

22.6 m.s.f.

2011-2014

However, it has resulted in Class A’s share of quarterly absorption

falling to its second-lowest level during the recovery so far

18

133.5%

93.9%

74.5% 76.3%

295.2%

98.5%

82.0% 78.3%

45.2%

73.4% 63.5%

80.9%

57.3%

0.0%

50.0%

100.0%

150.0%

200.0%

250.0%

300.0%

350.0%

2011 2012 2013 2014

Cla

ss A

sha

re o

f qua

rter

ly a

bsor

ptio

n


The same holds true for CBDs, with Class A absorbing slightly

less than half of all core space…

19

166.2%

90.4% 88.8% 80.8%

100.0% 106.1%

74.8%

0.0%

88.1% 86.5%

49.6%

92.0%

48.8%

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

120.0%

140.0%

160.0%

180.0%

2011 2012 2013 2014

Cla

ss A

sha

re o

f qua

rter

ly a

bsor

ptio

n


…and while Class A’s share of absorption is higher in the

suburbs, it also displays a downward trend

20

116.9%

97.9%

62.3%

75.1%

167.8%

102.5%

84.3% 85.3%

43.2%

73.4% 72.8% 70.3%

61.1%

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

120.0%

140.0%

160.0%

180.0%

2011 2012 2013 2014

Cla

ss A

sha

re o

f qua

rter

ly a

bsor

ptio

n


A variety of secondary markets posted strongest Class B

absorption in Q1 2014

21

2.3%

1.6%

1.4% 1.3%

1.2% 1.1%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

Fairfield County Fort Lauderdale Salt Lake City Austin Atlanta Detroit

YT

D C

lass

B n

et a

bsor

ptio

n (%

of i

nven

tory

)


U.S. average

Still, Class A continues to trump Class B according to most

indicators

22


of absorbed space in 2014

has been Class A

per square foot difference

between Class A and B space…

rate at which Class A rates are growing

compared to Class B year-on-year

difference between Class A and

Class B total vacancy

Total vacancy steady at 16.6 percent, in part due to new supply

beginning to come to the market

23

15.5%

16.0%

16.5%

17.0%

17.5%

18.0%

18.5%

19.0%

2009 2010 2011 2012 2013 2014

Tota

l vac

ancy

(%

)


Still, vacancy levels remain near historical highs

24

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

20.0%

1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014

Tota

l vac

ancy

(%

)


Total vacancy stable for Class A and B space, down for Class C

25

10.0%

12.0%

14.0%

16.0%

18.0%

20.0%

22.0%

2010 2011 2012 2013 2014

Tota

l vac

ancy

(%

)

Class A (CBD) Class A (suburban) Class B (CBD)

Class B (suburban) Class C (CBD) Class C (suburban)


Industry Real estate footprint Most affected markets

State government Contracting California, Illinois, New Jersey

Federal government Contracting Washington, DC

Media/print Contracting LA, NYC

Finance/banking Contracting NYC, Charlotte, Chicago, Palm Beach, Pittsburgh

Law firms Contracting (rightsizing) Washington, DC, NYC, SF, Atlanta, LA

Consulting Contracting (rightsizing) NYC, Chicago, Washington, DC

Accounting Contracting (rightsizing) Chicago, NYC, LA

Telecom Stable NJ, Dallas, Atlanta

Retail/consumer goods Stable NYC, Atlanta, Los Angeles

Education Growing Everywhere

Media (digital and TV) Growing Atlanta, NYC, LA, Philadelphia, Washington, DC

Green energy/clean technology Growing Pittsburgh, Silicon Valley, Denver

Real estate (residential) Growing Southern CA, Nevada, AZ, FL, GA, Carolinas

Technology Growing Silicon Valley, San Francisco, Austin, Seattle, Portland, Midtown South NYC, Cambridge, MA

Shared office space providers / co-working spaces Growing All markets particularly coastal markets and Chicago

Natural gas/oil/energy Growing Denver, Houston, Dallas, Pittsburgh

Biotech/pharmaceutical Growing San Francisco, San Diego, NJ/Phil, Boston, RDU

Office growth being driven by atypical tenant industries

26


Demographics and technology are driving productivity and

utilization and the next evolution of office space use

27


15%

space reduction by

U.S. law firms and

financial services

relocating

72%

of global CREs plan

to aggressively

increase density in

next 3 years

150

Square-foot-per-

employee average

target density, down

from 225 in 2009

50%

of the U.S.

workforce was

baby boomers in

2010. Gen Y will

be 50% by 2020

Many of these changes show stark pre- and post-recession

contrasts

28


Floor plates

Floor plates are up

from 25,000

square feet before

the recession to

60,000 square

feet.

Personal space

Before the

recession,

employees had

around 300 s.f. per

person; now they

have 200 s.f.

Interaction

Employees have

gone from rarely

running into others

to a nine-in-ten

chance of bumping

into a coworker.

Building features

Aesthetic and

building features

such as increased

roof heights and

floor-to-ceiling

windows are “in.”

And, as a result, law firms are shifting

29


15.2% Giveback by law firm

across the U.S. when

relocating


across the top seven U.S.

markets when relocating


across DC when

relocating

• Going digital

• Elimination of law libraries

• One-sized fits all office

• Higher administrative ratios

• Migration to glass boxes

• Migration to long and lean

• Migration to smaller floorplates

Consulting and accounting are shifting

30


25.0% Giveback by consulting

firms across the U.S.

when relocating

225 s.f. Average space per

consultant in

years past

90 s.f. Average space per

consultant in the most

efficient firms today

• Benching

• Work flexibly and client officing

• Offices gone, collaboration rooms in

• Increasingly looking at new

construction to meet efficiency

standards

• Industry giving back most space

Technology companies are shifting

31


22.0% Percent increase in

high-tech service jobs

since 2009

14.2% Total vacancy in core tech

markets, compared to 16.6

percent nation-wide

11.2% Growth in

core tech market

rents in 2013

• Benching is standard

• Less personal space, more shared

and amenity space

• “Open hangar” design preferred

• Migration to Class B+ with

character

• Space viewed as core to culture

• Remote work is waning

Banks are shifting

32


10.1% Give-back by average bank

across the U.S. when

renewing (flat headcount)

86.0% Percent of banking

transactions that no

longer need a teller

66.0% Percent of surveyed

banks planning to

reduce CRE footprint

• Regulation and cost pressures

forcing portfolio consolidation

• Offices shrinking

• Business units competing

• Branch reductions common

• Increasing importance of back

office (second- and third-tier

markets)

• Remote working increasing

Even the federal government is shifting

33


170 s.f. Target utilization rate per

employee for federally

leased space

$1.7 billion Amount spent annually

by the GSA for properties

deemed underutilized

15.9% Average give-back by

GSA across Metro DC

in FY 2013

• Telecommuting

• Benching

• Co-locations

• Minimal funds to implement

• Consolidations in low cost

buildings/submarkets

• Migration to off-center locations

• Disposition of underutilized

assets.

Slower growth in office-using employment mirrored in stalling

vacancy decline

34

15.5%

16.0%

16.5%

17.0%

17.5%

18.0%

18.5%

19.0%

26,500

27,000

27,500

28,000

28,500

29,000

29,500

30,000

2011 2012 2013 2014

Tota

l vac

ancy

(%

)

Offi

ce-u

sing

em

ploy

men

t (th

ousa

nds)

Office-using employment (thousands) Total vacancy (%)


CBD and suburban vacancy remain unchanged at 13.9 and 18.2

percent, respectively; CBD approaching historic norms

35

5.0%

7.0%

9.0%

11.0%

13.0%

15.0%

17.0%

19.0%

21.0%

23.0%

Tota

l vac

ancy

(%

)


Sublease space stable at 54.4 million square feet, declines

marginally as vacancy remains same in Q1

36

30,000,000

40,000,000

50,000,000

60,000,000

70,000,000

80,000,000

90,000,000

100,000,000

2009 2010 2011 2012 2013 2014

Sub

leas

e sp

ace

(s.f.

)


Marketed rents increase 1.2 percent, registering their 13th straight

quarter of increases and second-highest growth during recovery

37

-6.0%

-4.0%

-2.0%

0.0%

2.0%

4.0%

6.0%

2008 2009 2010 2011 2012 2013 2014

Qua

rter

ly r

ent g

row

th (

%)


Rental growth fastest in CBD Class A (+2.2 percent year-on-year)

space, driving national increases

38

$15.00

$20.00

$25.00

$30.00

$35.00

$40.00

$45.00

$50.00

2010 2011 2012 2013 2014

Ave

rage

ask

ing

rent

s ($

p.s

.f.)




U.S. office market moves farther along the clock as more markets

shift into landlord-favorable territory

39


Peaking

phase

Falling

phase

Rising

phase

Bottoming

phase

Austin, Seattle-Bellevue

Dallas, San Francisco Peninsula

Columbus, Long Island, Orlando

Miami, Philadelphia, Portland, San Diego

Chicago, Cincinnati, Cleveland, Fairfield County,

Milwaukee, Minneapolis, Oakland-East Bay,

Raleigh-Durham, Richmond, San Antonio

Charlotte, Detroit, Hampton Roads, Phoenix

Sacramento, St. Louis, Westchester County

Salt Lake City, Tampa, United States

Houston

Baltimore, Fort Lauderdale,

Washington, DC

West Palm Beach Indianapolis, Los Angeles, Orange County

Boston, Denver

New York, Pittsburgh

San Francisco, Silicon Valley

Atlanta, Jacksonville

New Jersey

Faster rent growth in CBDs contributing to faster movement

along clock

40


Peaking

phase

Falling

phase

Rising

phase

Bottoming

phase

Austin, Houston

Charlotte, Cincinnati, Cleveland, Dallas,

Detroit, Milwaukee, Raleigh-Durham

Miami, Seattle CBD

Downtown (New York),

Hampton Roads, San Antonio

Greenwich CBD, Indianapolis, Portland,

Salt Lake City, Stamford CBD

Columbus, Fort Lauderdale,

Richmond, San Diego,

Washington, DC

Baltimore, Sacramento

Chicago, Minneapolis

West Palm Beach

Atlanta, Jacksonville, Philadelphia,

Tampa, United States

Boston, Midtown (New York), Pittsburgh

Los Angeles, Oakland CBD,

Orlando, White Plains CBD

Midtown South (New York)

San Francisco

Denver, San Jose CBD

Phoenix, St. Louis

Suburban markets still struggling with elevated vacancy, with

more submarkets still at the bottom of the cycle

41


Peaking

phase

Falling

phase

Rising

phase

Bottoming

phase Austin, Pittsburgh

Dallas, Silicon Valley

Indianapolis, Jacksonville,

Long Island (Nassau), Orange County,

Portland (Westside), United States

Long Island (Suffolk)

Chicago, Columbus, Detroit, Miami,

Northern Delaware, Portland

(Eastside), Raleigh-Durham, Seattle

Cincinnati, Cleveland, Minneapolis,

Oakland-East Bay, Sacramento, San Antonio

Salt Lake City

Atlanta, Baltimore, Boston, Lehigh Valley, Milwaukee,

Philadelphia, Portland (Vancouver), San Diego, St. Louis

Houston

Charlotte, Fairfield County, Hampton Roads,

Phoenix, Westchester County

Central New Jersey, Fort Lauderdale,

Northern New Jersey, Orlando

West Palm Beach

Denver, Richmond, Tampa

Cambridge, San Francisco

Los Angeles

San Francisco Peninsula

Bellevue CBD

Northern Virginia,

Suburban Maryland

Southern New Jersey

CBD rent growth jumps faster than suburban, remains more

volatile

42

-4.0%

-3.0%

-2.0%

-1.0%

0.0%

1.0%

2.0%

3.0%

4.0%

2011 2012 2013

Qua

rter

ly r

ent g

row

th (

%)

CBD rent growth Suburban rent growth


CBD average: 1.0%

Suburban average: 0.2%

In turn, faster CBD rent growth results in rent gap widening by

$0.38 per square foot in Q1 2014…

43

$20.00

$25.00

$30.00

$35.00

$40.00

$45.00

2010 2011 2012 2013 2014

Ave

rage

ask

ing

rent

($

p.s.

f)

CBD Suburbs


$11.36

$15.86

…as did the Class A premium compared to overall rents, which

hit a recovery high of $4.97 per square foot

44

$3.00

$3.50

$4.00

$4.50

$5.00

$5.50

2010 2011 2012 2013 2014

Cla

ss A

pre

miu

m (

$ p.

s.f.)


Concessions wobbling, but overall decline in TI allowances and

free months compared to 2012

45

3.5

4.1

5.1

6.1 6.2

5.7 5.5

5.3 5.5

$23.00

$24.00

$25.00

$26.00

$27.00

$28.00

$29.00

$30.00

$31.00

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

2006 2007 2008 2009 2010 2011 2012 2013 2014

TI a

llow

ance

($

p.s.

f.)

Fre

e m

onth

s of

ren

t

Free months of rent TI allowance ($ p.s.f.)


As vacancy falls, so does leverage for tenants and tenant build-

out allowances from landlords

46

15.5%

16.0%

16.5%

17.0%

17.5%

18.0%

18.5%

19.0%

$26.00

$26.50

$27.00

$27.50

$28.00

$28.50

$29.00

$29.50

$30.00

$30.50

2009 2010 2011 2012 2013 2014

Tota

l vac

ancy

(%

)

TI a

llow

ance

($

p.s.

f.)

TI allowance ($ p.s.f.) Total vacancy (%)


New supply coming to market slowly increasing, but still well

below historic norms

47

0

20,000,000

40,000,000

60,000,000

80,000,000

100,000,000

120,000,000

140,000,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Com

plet

ions

(s.

f.)


Average annual completions

The vast majority of new completions are Class A, with an

increasing share in the suburbs

48

0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

2010 2011 2012 2013 YTD 2014

YT

D c

ompl

etio

ns (

s.f.)




Fewer than one-third of markets have no construction underway

as development activity jumps to 56.0 million square feet

49

0

20,000,000

40,000,000

60,000,000

80,000,000

100,000,000

120,000,000

140,000,000

160,000,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Und

er c

onst

ruct

ion

(s.f.

)


The majority of new construction is now in suburbs rather than

CBDs

50

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2010 2011 2012 2013 2014

Sha

re o

f con

stru

ctio

n

CBD Suburbs


32.0 percent of markets reported an increase in construction

starts…

51

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2011 2012 2013 2014

Up Neutral Down


…resulting in 11.8 million square feet of starts in the first quarter

alone

52

11,843,789

18,490,244 17,558,896

22,251,850

11,818,372

0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

2010 2011 2012 2013 YTD 2014

Con

stru

ctio

n st

arts

(s.

f.)


Houston’s development boom dominated national

groundbreakings during Q1 of 2014

53

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

Con

stru

ctio

n st

arts

(s.

f.)


A gap of another 15 to 18 months until the next cycle of developments deliver in late 2015 will yield continued market tightening and consistent rent growth exceeding 12 percent around the country through 2015.

COPYRIGHT © JONES LANG LASALLE IP, INC. 2014

John Sikaitis

Managing Director – Office and Local Markets Research

+1 202 719 5839

[email protected]

Phil Ryan

Research Analyst, Office and Economy Research

+1 202 719 6295

[email protected]

>> Click to access our complete report on the

current state of the U.S. office market

http://marketing.am.jll.com/acton/form/3030/00d4:d-0001/0/index.htm?id=00d4

u.s. office market statistics: q1 2014

Real Estate