Slowing absorption and a pending wave of new supply are setting the stage for muted growth.
A combination of decelerating leasing velocity and a lower level of “mega leasing” resulted in just 6.5 million square feet of net absorption during the fourth quarter. Near-full employment and a shortage of skilled talent suppressed leasing activity in several major technology hubs.
Despite these workforce constraints, tech remained the office market’s primary demand driver, representing 24.4 percent of national leasing activity and helping offset suppressed tenant demand in the legal and financial services sectors.
Learn more about what happened in Q4, and what to watch for in 2017, in our complete Office First Look.
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