Avison Young Global Office Market Report (Mid-Year 2019)20 Aug 2019
Total sales volume increases as cap rates remain flat
In first-half 2019, the U.S. continued to experience an ongoing flight to quality, asset repositioning and adaptive reuse of obsolete office buildings. The ever-increasing co-working space model is forcing other landlords to offer flexible workspaces, lease terms and plug-and-play tenant fit-outs. Amenities have taken center stage, becoming critical to attracting and retaining occupancy. Still, it seems clear that transitoriented developments rich in amenities or new, first-class spaces will win the leasing race. Among the issues facing major office markets are rising real estate taxes, which add to already high rental rates, and technology that is fueling more changes in space size and utilization.
These are some of the key trends noted in Avison Young's Mid-Year 2019 Global Office Market Report.
The report covers 79 office markets in eight countries across the globe: Canada, the United States, Mexico, the United Kingdom, Germany, Poland, Romania, and South Korea.