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Different Perspectives: Here’s What 1,500 CBRE Brokers Think About The Current Office Market

June 26, 2017

CBRE’s most recent Office Trends Report for the 1Q17 questioned 1,500 company professionals concerning the Office market throughout the Americas. Trends seen throughout the industry include tenants shedding excess space and sticking to the essentials, increasing efficiency. Suburban offices are becoming increasingly popular having absorbed 74% of total net absorption. While vacancy slightly rose nationally during the first quarter for the first time in seven years, vacancies fell throughout suburban office markets on the regional scale. Landlords are redesigning and upgrading their units to differentiate themselves from competition, as well as including service-oriented amenities such as cafeterias, bike racks, showers, and day cares to name a few. Increase in density throughout pedestrian-friendly Central Business Districts is also giving rise to the issue of insufficient parking. Overall in the 1Q, Office sales activity fell 12.4% annually and sales activity increased in suburban areas by 7% according to CBRE. Moody’s RCA CPPI Index reports that cap rates remained stable averaging 6.8%.

Different Perspectives: Here’s What 1,500 CBRE Brokers Think About The Current Office Market