Rent growth slows in face of new supply

  • U.S. office market conditions continue to favor owners, although demand slowed and vacancy ticked up slightly in Q1.
  • A relatively high rate of completions has caused rent growth to slow over the past year, although newer high-end space is being quickly absorbed in owner-favorable markets such as Midtown-South Manhattan, San Francisco, San Jose and Boston.
  • The technology, business services and financial services industries remain the leaders in current leasing activity, on par with last year.
  • Many of the active users in the market are concentrated in the East and the West, with financial services tenants focused on the East and technology tenants focused on the West.