Colliers International just released the 2014-Q3 North American Office Report. The report encompasses 87 markets in the U.S. and Canada, with a combined total of more than 6.4 billion square feet (BSF). The results indicate that the tech and Sun Belt office markets are leading broad recovery, with U.S. and Canada real estate viewed as bright spots for global investment.
Key takeaways regarding the local office market indicate that:
- Greater Philadelphia market continued to under-perform as compared to other ICEE-dominated markets and lower-cost sunbelt and Midwestern metro areas
- Both the Philadelphia-Camden-Wilmington and Allentown-Bethlehem-Easton metro areas registered sub 1.0 percent office using job growth
- Lagging job growth and greater demand for space efficiencies and employee density have constrained occupancy growth
- Investment activity increased, and there has been more interest from out of market buyers
- New development will be increasing with the full construction commencement of the Comcast Innovation and Technology Center and the FMC Tower at Cira South
- Improving hiring trends and tenant activity point to increased, but still moderate, office demand in both the CBD and Suburban markets during the fourth quarter
Read the full report here.