Skip to main content Skip to footer

Top Office Markets Snapshot | Q2 2021

Download Report
Q22021_TopOffice_DigitalAssetsHero11536x1040

The Outlook for the Leading U.S. Office Markets is Improving

The downturn in office market fundamentals continued in Q2 2021, but the pace of decline slowed. Net absorption was negative in all but one of the top 10 markets and vacancy rates rose in seven. Rents remain under pressure and are falling in four markets.

Asking rates across the 10 markets fell by an average of 0.8% in Q2 2021, with the greatest falls occurring in the San Francisco Bay Area (-3.1%) and Boston (-1.9%). Effective rents continue to decline across all markets due to increased incentives on offer.

While net absorption across the 10 markets in the second quarter was a combined negative 9.1 million square feet, out of a U.S. total of negative 18.6 million square feet, the pace of occupancy losses has slowed. Combined net absorption across the 10 markets was negative 24.4 million square feet in Q1 2021.

Manhattan once again dominated these occupancy losses, with 4.9 million square feet of negative net absorption, compared to negative 11 million square feet in the first quarter. Conversely, in Atlanta, absorption turned positive to the tune of 383,630 square feet. While absorption remained negative in the remaining eight markets, levels were lower in every market except Los Angeles.


Q22021_TopOffice_DigitalAssetsSearch1024x972

Top Office Markets Snapshot | Q2 2021

Download Report
Related Experts

Scott Nelson

CEO, Occupier Services | Global

Atlanta

Scott Nelson is CEO, Occupier Services | Global at Colliers International and is responsible for global strategy and leadership of the Occupier Services business unit. Occupier Services makes up the platform of tools and talent that supports our clients directly and through transaction advisory professionals leading Occupier client relationships.  These engagements include tenant representation and project management assignments, multi-market accounts, to Corporate Solutions outsourcing.  Occupier Services includes service lines such as Account Management, Client Experience, Consulting, Technology Services (including our Colliers360 technology), Lease Administration, Transaction Management and Project Management.  Occupier Services is directly accountable for the major client engagements based in all regions of Americas, EMEA and APAC.  

View expert

Kevin Morgan

President, Northwest/North Central Region and Head of Agency Leasing, U.S.

Reno

As President of the Northwest/North Central Region for Colliers International Kevin P. Morgan leads Colliers' operations and business strategy in the region with a focus on developing, recruiting and retaining top brokerage professionals and providing clients with the highest level of service.

With more than 20 years of international commercial real estate experience, Kevin is a strategic operator driving real estate deals, team development, transaction management and negotiations for global real estate portfolios. Prior to joining Colliers, Kevin was Executive Vice President and CEO for multinational corporation Crystal Lagoons, where he led offices spanning 15 countries and managed 55+ real estate partnerships valued at $364M+ in revenue with leading development and investment companies.

Kevin's role with Crystal Lagoons represents his unique skillset in building market leading corporations out of start-up cultures. This role saw Kevin lead a significant portfolio of transactions spanning multi-family, hospitality, retail, mixed-use, office and land in 17 countries across Central America, Latin America, Europe, Middle East, Asia, and Australia.

Prior to his role with Crystal Lagoons, for over a decade Kevin held national and international senior leadership positions with The John Buck Company (JBC), an international real estate development, investment and asset management firm, based in Chicago. JBC has delivered 44M SF of mixed-use real estate, raised $700M+ in private and institutional capital, representing $11B+ in project financing.

During his tenure Kevin launched and co-directed a joint venture real estate development company between JBC and Mubadala Investment Company (an Abu Dhabi sovereign wealth fund). While based in Abu Dhabi, he was a key member of the executive team that led a culturally diverse team of 250 professionals across three business units responsible for $7.5B+ of development projects.

Additional roles at JBC spanned ownership leasing for new office development projects and expanding relationships with new capital partners on a domestic and international scale.

Kevin brings to Colliers a commitment to service excellence and strategic partnership to drive success for its people and its clients.

View expert

Stephen Newbold

Director of National Office Research

Washington, DC

Stephen has over 30 years of Commercial Real Estate (CRE) Research experience gained in both the U.S. and U.K.  He has an expert knowledge of many CRE markets across the U.S. Having worked with brokerage firms, asset managers and data providers he has a broad spectrum of experience and is adept in forecasting, analysis and strategy. Prior to joining Colliers, Stephen was a Research Director with CoStar based in Washington D.C. His career history also includes eight years as Director of U.S. Office Research with Deutsche Asset Management and six years as Head of Research with Newmark Knight Frank in London, U.K.

At Colliers, Stephen is responsible for all aspects of U.S. National Office research including authoring quarterly reports, press interviews and multi-market analysis. He works closely with multiple Colliers' business lines including Office Services, Capital Markets, Healthcare, Law Firm Services, Life Sciences, Property Management and Occupier Services. He’s a frequent author of blogs and thought leadership pieces as well as giving presentations to clients and industry groups.

View expert