Q3 2020 Office Market Outlook Report

Download Report
Q3OfficeOutlookHero11536x1040

U.S. Office Absorption Hits a New Low as Sublease Space Rises Sharply

Our latest report dives into key factors that are currently impacting the U.S. office market. We discuss vacancy rates, absorption, rents, construction, and the investment market, among others. We also explore trends in downtown and suburban markets throughout the U.S.

U.S. office absorption fell significantly in Q3 2020 as the effects of COVID-19 placed an even greater toll on the market than in the preceding quarter. Concurrently, the vacancy rate posted its greatest quarterly increase in more than 10 years as leasing activity remained subdued and the amount of sublease space on the market rose sharply. Construction levels remain elevated and, while there was a slight increase in sales volume in the third quarter, most investors remain on the sidelines.

As tenants continue to assess their future space needs, the amount of sublease space on the market is set to continue to rise. On the positive side for tenants that are active in the market, there is an opportunity to lease high quality, well fit-out space at a point in time when lease terms are becoming increasingly negotiable.


Q3OfficeOutlookSearch1024x972

Q3 2020 Office Market Outlook Report

Download Report
Related Experts

Kevin Morgan

President, Northwest Region and Head of Agency Leasing | U.S

Reno

As President of the Northwest Region for Colliers International Kevin P. Morgan leads Colliers' operations and business strategy in the region with a focus on developing, recruiting and retaining top brokerage professionals and providing clients with the highest level of service.

With more than 20 years of international commercial real estate experience, Kevin is a strategic operator driving real estate deals, team development, transaction management and negotiations for global real estate portfolios. Prior to joining Colliers, Kevin was Executive Vice President and CEO for multinational corporation Crystal Lagoons, where he led offices spanning 15 countries and managed 55+ real estate partnerships valued at $364M+ in revenue with leading development and investment companies.

Kevin's role with Crystal Lagoons represents his unique skillset in building market leading corporations out of start-up cultures. This role saw Kevin lead a significant portfolio of transactions spanning multi-family, hospitality, retail, mixed-use, office and land in 17 countries across Central America, Latin America, Europe, Middle East, Asia, and Australia.

Prior to his role with Crystal Lagoons, for over a decade Kevin held national and international senior leadership positions with The John Buck Company (JBC), an international real estate development, investment and asset management firm, based in Chicago. JBC has delivered 44M SF of mixed-use real estate, raised $700M+ in private and institutional capital, representing $11B+ in project financing.

During his tenure Kevin launched and co-directed a joint venture real estate development company between JBC and Mubadala Investment Company (an Abu Dhabi sovereign wealth fund). While based in Abu Dhabi, he was a key member of the executive team that led a culturally diverse team of 250 professionals across three business units responsible for $7.5B+ of development projects.

Additional roles at JBC spanned ownership leasing for new office development projects and expanding relationships with new capital partners on a domestic and international scale.

Kevin brings to Colliers a commitment to service excellence and strategic partnership to drive success for its people and its clients.

View expert

Stephen Newbold

Director of National Office Research

Washington, DC

Stephen has over 30 years of Commercial Real Estate (CRE) Research experience gained in both the U.S. and U.K.  He has an expert knowledge of many CRE markets across the U.S. Having worked with brokerage firms, asset managers and data providers he has a broad spectrum of experience and is adept in forecasting, analysis and strategy. Prior to joining Colliers, Stephen was a Research Director with CoStar based in Washington D.C. His career history also includes eight years as Director of U.S. Office Research with Deutsche Asset Management and six years as Head of Research with Newmark Knight Frank in London, U.K.

At Colliers, Stephen is responsible for all aspects of U.S. National Office research including authoring quarterly reports, press interviews and multi-market analysis. He works closely with multiple Colliers' business lines including Office Services, Capital Markets, Healthcare, Law Firm Services, Life Sciences, Property Management and Occupier Services. He’s a frequent author of blogs and thought leadership pieces as well as giving presentations to clients and industry groups.

View expert