Dive Brief:
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Although construction of office space in the U.S. slowed slightly during the first quarter of the year, more square feet of space came online than during any quarter since late 2009, according to Colliers International.
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The 2015 Q1 North American Research & Forecast Office Report predicted a “strong 2015” for the office market, pointing to a vacancy rate unchanged from the prior quarter — at 12.9%.
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Investor demand for U.S. and Canadian office buildings is expected to “remain robust,” according to the report, which said construction activity is greatest in markets that have led the U.S. economic recovery.
Dive Insight:
More office space was leased or sold in Dallas than in other cities during the first quarter, and Houston took second place, even though activity there was half what it was during the prior quarter.
The reason for Houston’s dip: Its economy is dependent on the energy industry, which is suffering from low oil prices. A more diverse economy in Dallas boosted that city’s demand for office space.
The strongest driver of demand for office space is the tech industry, making Boston, Silicon Valley, San Francisco and parts of Manhattan attractive to investors.
