Office market expected to grow in near future

The U.S. office market ended 2014 on a good note and should continue this upward trend through 2017, according to a recent report published by Cushman & Wakefield. Key growth drivers will be high levels of business and consumer confidence leading to increased hiring, higher incomes and faster spending growth. The report states that the period from 2015 to 2017 is expected to be the strongest three years of economic growth in the United States since 2004 to 2006.

As this economic growth continues, vacancy rates in most major markets are expected to drop while rents rise. Boston ranks first for projected asking rent growth, averaging 10.1 percent from 2015 to 2017. The area has seen a significant shift in tenant base from financial and legal tenants to technology tenants.

Orange County, Calif., and Miami top the charts in terms of vacancy rate declines, with expected decreases of 530 basis points and 510 basis points, respectively. Seattle is expected to hav