|Photo courtesy of therealdeal.com|
According to Cushman and Wakefield
’s latest global office
forecast 2013 will be a year of stabilization while 2014 is when rental growth
"Tenants are focused on achieving efficiencies, which
in many instances has translated into occupying less space, and at the same
time, we've seen an increasing flight to quality, resulting in pockets of
growth in top-quality properties and global gateway cities." said Glenn
Rufrano, President and Chief Executive Officer of Cushman & Wakefield.
That explains why San Francisco
is one of the cities that Is
forecasted to experience one of the highest office rental growth. Most of the
US cities will see limited new construction projects in 2013 and major growth
will happen in the major markets such as Boston
, Washington DC
, New York
course San Francisco. Canada had a record development this year and specially Toronto
where 3.5 million square feet in downtown are being built and will
be available for 2013.
“A late-2013 central market upturn will be driven by a
number of factors, including sustained low interest rates, the anticipated U.S.
economic recovery, a stabilized euro zone and a slow drop in value of the
Canadian dollar, which will help revitalize manufacturing and export growth,”
says Pierre Bergevin, President and CEO, C&W Canada
As the US economy continues showing signs of recovery, the
real estate industry will continue to recover slowly starting by important
cities as New York and smaller cities will follow in a butterfly effect.
The real estate industry will always be the leading push for
the rest of the economy, thus Americans can expect a stable year and prepare
for a prosperous 2014.
Labels: Office market forecast 2013