Avison Young has released its 2016 Canada, U.S. and U.K. Forecast, suggesting that stakeholders "will need to keep a global perspective, stay abreast of changes in the broader environment and, increasingly, devise innovative solutions to complex problems." The company's annual report looks at commercial real estate markets in 55 metropolitan regions in Canada, the U.S. and U.K., analyzing activity from 2015 and prospects for the year ahead. For the U.S. office markets, Avison Young saw overall vacancy declined 60 bps year-over-year to 12.4%, in 2015, with all but six markets recording lower rates when compared with year-end 2014. At year-end 2015, the amount of office space under construction in the U.S. had increased to almost 86 msf (52% preleased), up from 68 msf one year earlier; however, according to Avison Young, there is no real threat of oversupply in the near term.
Avison has forecast "modest improvement" in the U.S. office vacancy rate in the coming year, noting that absorption may be tempered by tenants shifting to smaller and more efficient footprints. "From an occupier perspective, we have seen a slight decrease in capital deployment, primarily related to economic uncertainty, and the occupier tendency toward risk aversion, shorter leases and optimization of space usage may continue in 2016,"said Earl Webb, President, U.S. Operations for Avison Young.
To read the full Avison Young forecast, click here. For more news and information visit Blumberg Partners.
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