From Colliers: Q2 2014 North American Office Report
- Both the U.S. and Canada surmounted the effects of “Frozenomics” in Q2. The U.S. added more than 200,000 jobs each month between February and July – the longest stretch since 1997. Projected job growth and rising business confidence levels bode well for office demand through the remainder of 2014.
- The U.S. economic recovery is broadening: half of the metro areas tracked by Colliers have recovered all of the office-using jobs lost during the recession, including hard-hit markets like Atlanta, Miami and Jacksonville.
- Continuing the trend of recent quarters, the overall U.S. vacancy rate decreased by 21 basis points to 13.72% in Q2 2014 and the overall Canadian vacancy rate increased by 52 basis points to 8.52%. Of the markets tracked by Colliers reportingboth Q1 and Q2 data, 56 of 72 U.S. markets posted quarterly vacancy decreases, whereas vacancies declined in only one of the seven Canadian markets.
- North American absorption totaled about 16.9 million square feet in Q2 2014, up from 15.3 million square feet in Q1 2014. The U.S. posted just under 17 million square feet of positive absorption, compared with 83,530 square feet of negative absorption in Canada.
- Construction activity continued to increase in both countries, but at a faster pace in the U.S. At mid-year, 101.8 million square feet were under construction in the U.S. and Canadian markets tracked by Colliers, up from 92.1 million square feet at the end of Q1