A Cushman & Wakefield Research Publication - 2017 Global Forecast

GLOBAL

AMERICAS

APAC

APPENDIX

EUROPE

SUPPLY & DEMAND In the U.S., the bulk of the new construction is concentrated in the country’s largest cities, for example San Jose/Silicon Valley, Dallas, the Washington, DC Metro, San Francisco and New York. In all of these cities, supply will outstrip demand and vacancy will inch up, but not dramatically so. Some smaller markets are also ramping up construction. Nashville has the lowest vacancy rate in the U.S. at the moment and developers seem to be keenly aware. Nashville will see new completions nearly quadruple over the next 3 years relative to the prior 3 years. The construction pipeline is also heating up in Charlotte, Raleigh/Durham, and Denver—all generally healthy absorption markets, but new supply will likely outstrip demand, resulting in

higher vacancy. Outside of the U.S., Montreal and Mexico City fall into a similar category—where completions look relatively high to net absorption. On the other end of the spectrum, developers in some markets appear to be underestimating future demand. This includes Orlando, Phoenix, Portland and Philadelphia—in all of these markets, office-using job growth remains solid, and in some, is shifting into a higher gear. These markets stand out as some of the strongest opportunities for future development.

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