The U.S. office market has maintained strong footing despite economic uncertainty due to the upcoming election according to Stephen Newbold, national director of office research at Colliers International USA.
Newbold said that the office net absorption is up 22% year-over-year and office vacancy is at a record low of 11.4%.
In regards to office trends, Newbold believes that as we get closer to the election, there will likely be a slowdown in business decisions. Despite this, demand should rain in the positives.
“Widespread rental growth is largely over but increases should still occur in markets with strong tech demand and those where high-quality new supply is being delivered,” said Newbold. “Barring a marked drop in leasing activity, we don’t anticipate a supply/demand imbalance at the national level. Any supply concerns remain localized and submarket specific.”
The biggest challenge office owners are facing is attracting and retaining the best talent. As office space absorption leans towards Class A office space, it becomes difficult to fill older spaces.
As far as technology goes, buildings have started adopting tenant experience apps which often include building and suite access, discounts to surrounding fitness classes, on-site meal services and events geared towards tenants and more.
One of the biggest trends in flexible workspaces is the adoption of landlord and operator partnerships. Additionally, there has been an increase in landlords offering their own flexible workspace options.