CONTACT US

BARB JOHNSON, CCIM, SIOR
+1 801 869 8019

barb.johnson@cbre.com
www.cbre.com/barb.johnson

LinkedIn

VIC GALANIS, SIOR
+1 801 869 8021
vic.galanis@cbre.com
www.cbre.com/vic.galanis

LinkedIn

COURTNEY OWENS
+1 801 869 8022
courtney.rudolph@cbre.com
www.cbre.com/courtney.rudolph

















































 
U.S. Real Estate Market 2017 Forecast

Happy New Year! We are off and running! What is the real estate market outlook for 2017? CBRE Research provides a very insightful U.S. market forecast for 2017 which covers:
  • Office, Medical Office, and Occupier
  • Industrial
  • Retail
  • Hotel
  • Multifamily
  • Data Centers
  • Life Sciences
The research-based outlook for the U.S. can be found here. A summary of the U.S. office market forecast is included below.

U.S. Office Market Forecast

In 2017, the U.S. should experience a moderate slowdown in office, impacting office vacancy and rental growth. This is due to increased new construction and supply, and decreasing tenant demand for additional office space. Continuing technological and workplace innovation will cause businesses to leverage their human resources in determining how buildings can best serve their employees to produce better products and services thereby increasing their revenue.

The technology industry led our comeback from the great recession, and competition for tech talent is increasingly more challenging. Finding skilled labor will be critical for companies to remain competitive and successful and will be a significant factor in business expansion, ultimately affecting demand for office space. With immigration policy being a hot topic in the Trump presidency, it’s unknown how business will cope with the inability to find U.S. workers for job openings; this could potentially affect revenue. This inability to find qualified workers is exacerbated by low unemployment rates, near-record numbers of job openings, an increasing number of workers quitting, and the lack of real wage growth. Due to labor force constraints, CBRE forecasts a lower net gain in office-using jobs in 2017 as compared to 2016 which is a direct impact on net absorption of office space. In 2017, CBRE expects more than 50 million square feet of office space to be delivered, making it the greatest amount of square footage delivered since 2009. This will result in a slight increase in U.S. vacancy rates, moving up from 13.0% in 2016 to 13.3% in 2017. New construction costs will contribute to an increase in rental rates, but this growth will be slower than that experienced in the recent past. The forecasted national average rent growth for 2017 is 1.5% as compared to the growth rates of 4.0-5.0% achieved from 2014-2015.



The office picture for Utah will mirror the U.S. office forecast. The slowdown in Utah will likely be more moderate than in other large metropolitan areas in the U.S.; rental growth, vacancy and absorption will be impacted in 2017. For additional information and insights, we welcome your calls and emails. The Johnson-Galanis Team is here to advise, guide and help clients find hidden opportunities to increase revenue and achieve their business goals


 


 
Share
You may also unsubscribe by calling toll-free +1 877 CBRE 330 (+1 877 227 3330).

Please consider the environment before printing this email.

CBRE respects your privacy. A copy of our Privacy Policy is available online. If you have questions or concerns about our compliance with this policy, please email PrivacyAdministrator@cbre.com or write to Attn: Marketing Department, Privacy Administrator, CBRE, 200 Park Ave. 19-22 Floors, New York, NY 10166.

Address: 222 South Main 4th Floor, Salt Lake City Utah 84101

THIS IS A MARKETING COMMUNICATION

© 2024 CBRE, Inc. This information has been obtained from sources believed reliable. We have not verified it and make no guarantee, warranty or representation about it. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs.

CBRE and the CBRE logo are service marks of CBRE, Inc. and/or its affiliated or related companies in the United States and other countries. All other marks displayed on this document are the property of their respective owners.

Photos herein are the property of their respective owners and use of these images without the express written consent of the owner is prohibited.