37 million sq. ft. of net absorption expected in 2019, marking the 10th-straight year of positive absorption; Flexible space offerings could account for 10% of
Class A space by 2028
Office-using employment growth, albeit at a slower rate due to labor market constraints, will drive further office market expansion in 2019. Relatively high levels of new supply will bring the market into greater balance, although construction levels remain below previous cyclical highs. New product will help meet strong tenant demand for modern, efficient, highly amenitized space to attract and retain employees in an increasingly competitive labor market. Occupiers will continue to seek flexible space offerings and lease structures that keep them adaptable to changes in the economy and their organizational needs. Learn how to be in an advantageous position next year by exploring CBRE’s 2019 Office/Occupier Outlook Report.
Office-Using Employment Growth
Source: CBRE Research, CBRE Econometric Advisors, Q3 2018.