Obsolescence Equals Opportunity_final (002)
Evaluating Supply by Quality:
• The rest of the world, however, has much higher share of newer product. Over half of office inventory in Greater China and the rest of APAC is currently under construction or was delivered in the past eight years. LATAM (24%) and EMEA (18%) also have higher proportions of new office construction than North America, but still likely not enough to meet the coming demand for this type of space.
Despite the increased demand driving price premiums, there isn’t enough new product to meet the needs of occupiers increasingly focused on quality, location, amenities and experience. • Shown in Chart 9, about 9% of U.S. office product classifies as the "best" category. • Canada is in a similar range with 11% of inventory currently under construction or delivered since 2015.
CHART 9: CURRENT SHARE OF U.S. OFFICE INVENTORY BY “CLASS”
CHART 10: CONSTRUCTION ACTIVITY BY GLOBAL REGION New deliveries Since 2015 & Currently Under Construction, Global Regions
800
80%
9%
600
60%
40%
400
40%
MSF
200
20%
51%
0
0%
Greater China
APAC LATAM EMEA Canada United States
Last 8 Years Under Construction Share of Inventory (rhs)
Newer, High Quality Class A "Older" Class A Class B/C
Source: Cushman & Wakefield Research
Source: Cushman & Wakefield Research
18 | OBSOLESCENCE EQUALS OPPORTUNITY
Made with FlippingBook Digital Proposal Maker