Demand for US office space continued to be strong in Q3 of 2018 with stable leasing volumes, rising asking rents, and solid absorption, according to the quarterly update on the market from Cushman & Wakefield, which was cited by Business Insider.
The report showed that tech and finance remained dominant with tech accounting for 27% of the quarter’s large leases; and financial sector companies taking 17% of the top leases.
Meanwhile, the tightest markets all have strong tech demand:
- San Francisco with a vacancy rate of 6.8%;
- Puget Sound, Wash. (7.0%);
- Midtown South Manhattan (7.4%);
- Raleigh/Durham,NC (7.4%); and
- Charlotte,NC (7.5%).
- Midtown South posted the highest asking rent nationwide at $76.42 psf;
- Midtown: $76.12 psf;
- San Francisco: $74.72 psf;
- Downtown Manhattan: $63.72 psf;
- San Mateo, Calif., at $57.98 psf; and
- Washington, DC: $54.41 psf.
“The US office market continues to be in good health,” said Revathi Greenwood, Cushman & Wakefield Head of Americas Research. “While we see some indicators decelerating, demand remains robust, especially in the West and in the tech sector. We predict this momentum will carry over into 2019.”