North America Suburban Office Trends - March 2017 FIGURES
CBRE Econometric Advisors projects positive net absorption and continued rent growth for the North American suburban office market through 2018. Submarkets with high-quality amenities and efficient buildings capable of handling denser employee layouts will likely perform the best.
Due to improving tenant demand and low overall levels of new supply, the U.S. suburban office vacancy rate has not increased for 27 straight quarters. The vacancy rate was 14.1% in Q4 2016, just 20 basis points (bps) above the prerecession low in Q2 2007.
Many previously lagging suburban markets posted vacancy rate decreases of 200 bps or more in 2016, underscoring the geographic breadth of the suburban recovery.
The Canadian suburban office market recorded positive absorption and only a slight uptick in vacancy in 2016.