office investment outlook
- Net absorption of approximately 83 million square feet will generate a 20-basis-point decline in the U.S. vacancy rate to 14.3 percent, marking the low point of the current cycle. The reduction in vacancy will spur an increase in the average asking rent of 3.5 percent.
- This year likely marks the high point in completions for the current cycle, as construction lenders maintain a conservative approach to underwriting office construction. Developers will complete 82 million square feet of