Colliers International

Q4 2017 U.S. Top Office Metros Snapshot

by CoyDavidson on February 15, 2018

2017 Closes Out on a Positive Note as Major Office Markets Remain Strong

The Q4 2017 U.S. Top Office Metros Snapshot report shows that the major office markets remained healthy in the fourth quarter, with rents holding steady in seven of the 10 major markets and rising in two.

Only one market saw a rise in vacancy during the fourth quarter and the rent growth witnessed in earlier quarters has tapered off, replaced by stable rents. Unsurprisingly, tech tenants are the major drivers of leasing activity as tech companies continue to expand their office footprint.


  • The major office markets in the U.S. remain healthy, as tech tenants continue to lead the charge. The majority of leasing by tech firms is pure expansion, and there is no slowdown in sight. Co-working space operators, and WeWork in particular, are expanding aggressively.
  • High-end, Class A space is in strong demand and setting record rents in the most prestigious submarkets. Tenants appear willing to pay more for the best space configurations and locations as they seek to retain and attract the most skilled employees.
  • Markets where tech is a key driver lead the way. Manhattan, San Francisco and Seattle continue to dominate. San Francisco boasts the highest rents in the nation. Driven by further activity by Amazon, Seattle has the lowest vacancy rate of the major markets. All 10 markets covered in this report are on Amazon’s shortlist of potential locations for its second U.S. headquarters.
  • Leasing volume in Manhattan is at close to record levels and Boston is one of the most dynamic markets in the top 10. Known tenant requirements are translating into leases signed and a further series of large leases are expected to occur over the next few months.
  • Supply-side risk is diminishing, but Los Angeles still merits a note of caution. Construction is elevated in LA’s core locations while leasing activity remains stubbornly low. Concerns in Washington, D.C. have shifted from an oversupply of new product to the amount of older space left behind.
  • Houston is still the most challenged of the top 10 markets, but a rise in the price of crude oil portends a potential upturn in fortunes. Dallas remains on a solid footing, but absorption is set to slow once the final major tenant move-ins in Far North Dallas are completed.

Learn more about Colliers Tenant Representation Services

You might also like:

Get my posts via e-mail: here


Colliers International Launches Real Estate Technology Accelerator with Techstars

January 18, 2018 Announcements

Partnership with Global Technology Investor and Accelerator Leader Highlights Commitment to Real Estate Industry Innovation Colliers International Group Inc. (NASDAQ:CIGI) and (TSX:CIGI), a global leader in commercial real estate services, today announced the launch of the Colliers Proptech Accelerator powered by Techstars. “Disruptive changes in technology, evolving demographics, fierce global competition and increased connectivity are factors impacting […]

Read the full article →

Top Blog Posts for November 2017

December 2, 2017 Colliers International

Most Popular Blog Posts from The Tenant Advisor (November 2017) In case you missed them, below are links to the most popular posts from The Tenant Advisor for the month of November 2017. Law Firm Services | 2017 Spotlight Report Colliers International has released the Law Firm Services Group Fall 2017 Spotlight Report. Law firms have […]

Read the full article →

Colliers International Offices – Toronto

November 27, 2017 Architecture / Space Planning

The Office of the Future – Colliers International Modernizes its Toronto Downtown Office Colliers International decided it was time to move and modernize its Toronto office after spending over 25 years at its old location, choosing Brookfield Place, at 181 Bay Street, as its new home. Workplace strategy historically was about properly maintaining facilities, controlling […]

Read the full article →

2017 Capital Flows Midyear Update

September 29, 2017 Capital Markets

U.S. Property Markets Shake Off Slowdown and Power On Our 1H 2017 Capital Flows Midyear Update addresses the recent slowdown in U.S. property markets. Despite several quarters of decline in year-over-year transaction volume, the rate of decline has been falling, suggesting markets are stabilizing. Price appreciation has renewed and price gains have been broad-based across […]

Read the full article →

Q2 2017 U.S. Industrial Market Outlook Report

August 30, 2017 Colliers International

Tight Vacancies Lead to Robust Development Our Q2 2017 U.S. Industrial Market Outlook Report highlights that demand from e-commerce and third-party logistics users is driving industrial absorption and keeping the overall vacancy rate at an all-time-record low. Development remains strong in core industrial markets and appears set to pick up pace with 216 million square […]

Read the full article →

Q2 2017 U.S. Office Market Outlook Report

August 23, 2017 Colliers International

Steady as She Goes: U.S. Office Market Remains on Solid Ground Despite the fact that the U.S. office market is cooling, the market overall is solid and stable with occupancy at peak levels and record rents in several markets. Our Q2 2017 U.S. Office Market Outlook Report reveals that investors remain committed to the office […]

Read the full article →

Houston Retail Market Report | Q2 2017

August 7, 2017 Colliers International

Houston’s retail market continues to expand following increased population, jobs and housing growth in suburbs Houston’s retail market has remained healthy through mid-year 2017, with low vacancy, steady leasing activity and positive absorption. Despite 1.5M SF of new construction deliveries in Q2 2017, the average vacancy rate remained unchanged from last quarter, at 5.6%. Almost […]

Read the full article →

Texas Office Market Update | Q2 2017

August 5, 2017 Austin

The State of the Texas Office Market Mid-Year Office Market Reports for Austin, Dallas-Fort Worth and Houston. Austin Austin’s Office Market Continues to Deliver As We Hit the Midyear Mark In the second quarter of 2017, Austin’s office market saw 599,982 SF of positive net absorption. This sets the year-to-date absorption at 551,119 SF of […]

Read the full article →