July’s 1.1% year-over-year asking rate growth underscores healthy demand for space
SANTA BARBARA, Calif., Aug. 29, 2019 – Professional business services jobs in the U.S., led by computer design services, grew 1.7% year-over-year in July 2019, driving a 1.1% year-over-year increase in office asking rates, according to a new report from Yardi® Matrix.
Asking rates grew that month in 16 of the top 23 markets surveyed by Yardi Matrix. Late-cycle construction remains robust, with 174 million square feet of space under construction, representing inventory growth of 2.8% when delivered.
Capital market volatility has yet to impact office space demand. “Economic growth has been running at an annualized rate of about 2.5%, and fundamentals such as employment and consumer spending remain healthy, so a recession does not appear to be on the immediate horizon,” the report says.
More information about U.S. office property demand, lease rates, occupancy trends, transaction volume and more is available in the national office report for August 2019.
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