Despite political and economic uncertainty, office market fundamentals continue to strengthen in the Americas as a whole, but opportunities and risks vary for individual markets.
U.S. employment growth remains strong, and tightening labor market conditions are keeping companies focused on labor cost and availability when selecting new markets. Building amenities that facilitate talent attraction and retention are equally important.
More than 80% of U.S. markets recorded year-over-year rent gains in Q1 2017, with the strongest growth occurring in southeastern and western markets.
The suburban market continues to gain momentum in the U.S. and accounted for 74% of total net absorption in Q1 2017, exceeding the suburbs’ 65% share of total inventory.
Increased competition within Canadian downtown cores has made suburban markets a viable outlet for tenants seeking new space for lower rents. The spillover effect is starting to take shape, with the lion’s share of suburban leasing activity in Q1 2017 taking place in Toronto, Vancouver and Montreal.
In Mexico City, the amount of space under construction remains high despite significant completions last year and in Q1 2017.