Sep 21 2014

JLL Report Download | Q3 2014 U.S. Office Sentiment Survey

From JLL’s Q3 2014 U.S. office sentiment survey:

jllq3officesentimentExpansionary momentum builds. As investor activity increases, the next generation of office space emerges. Key takeaways

Markets across the country continue to recover and expand due to increased economic momentum, corporate confidence and thus higher levels of hiring

  • 35 percent of markets responded saying that tenant activity in Q3 was driven by growth
  • But 98 percent of markets indicate a preference for higher density overall by companies.
  • The preference for creative space is leading landlords to make capital improvements to buildings (90 percent of respondents) and build-out spec suites (40 percent of respondents).

Increased leasing momentum and tighter fundamentals supporting increased investment sales activity

  • Bidder activity in 75 percent of markets surveyed has increased since last year; 63 percent of markets surveyed responded that the number of assets for sale is increasing.
  • It’s no surprise then that cap rates are compressing in 48 percent of markets surveyed, driven by institutional investors, followed by private developers and property companies.
  • In 70 percent of markets surveyed, the increased capital is flowing to Core Suburbs, followed by Core CBDs (43 percent of respondents), a shift from recent quarters where CBD activity dominated.

Download Report for detailed analysis and breakdown

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