Tenant's Guide

North America


  • Canada

    Office Market

    Job Growth
    .1% (YOY)
    111K SF
  • US

    Office Market

    Job Growth
    1.0% (YOY)
    9.7M SF
  • US

    Industrial Market

    Job Growth
    1.0% (YOY)
    55.8M SF

Business Drivers

The global economy is continuing to perform strongly, expanding 3.2% annually in Q3, matching the result in Q2. Growth is stabilizing at levels last seen Q3 2015, reflecting improving economic dynamics in emerging-markets, while developed nations continued expanding due to rising wages, low inflation and accommodative monetary policies.

In the United States, economic momentum persisted in Q3 despite hurricane-related setbacks. Retail sales rebounded in September, as reconstruction efforts boosted sales of vehicles and building supplies, while industrial production returned to growth following two months of contractions. Economic growth is expected to accelerate slightly next year as a tight labor market continues to support household spending and modest tax reform seems increasingly plausible, stimulating non-residential fixed investment and business sentiment.

Employment Situation

The unemployment rate decreased by 0.2 percentage point to 4.2 percent in September, and the number of unemployed persons declined by 331,000 to 6.8 million. Both measures were down over the year.

Unemployment Rate in Canada remained unchanged at 6.20 percent in September, matching the low of October 2008. Employment grew by 0.1 percent or 10,000 to 18,454 Million. Gains in full-time employment (+112,000) in September were mostly offset by declines in part time (-102,000).

US Office Market Overview

Vacancy has remained at 9.5% and net absorption totaled a positive 9,727,184 sf. Vacant sublease space increased in Q3 to 55,385,461 sf. Rental rates ended the quarter at $24.76, an increase over the previous quarter. A total of 375 buildings were delivered to the market, bringing 19,437,225 sf of new space. There is 154,003,196 sf of additional space currently under construction.

US Industrial Market Overview

Industrial vacancy remained at 5.1% in Q3, with net absorption totaling positive 55,817,008 sf. Vacant sublease space increased, ending the quarter at 40,468,787 sf. Rental rates rose to $6.31. In Q3, a total of 469 buildings were delivered, adding 67,406,530 sf of space. There is 276,628,751 sf of industrial space currently under construction.

US Employment Growth

Los Angeles: 149,061
Dallas: 106,536
Miami: 100,543
New York: 78,874
Seattle: 58,147
San Francisco: 26,855
Boston: 25,241
Detroit: 21,157
Philadelphia: -9,761
Chicago: -81,478
Bus. & Prof. Services: 528,000
Education & Health: 477,000
Leisure & Hospitality : 183,000
Construction: 173,000
Financial: 150,000
Manufacturing: 118,000
Trade, Tran. & Utilities: 91,000
Mining & Logging: 61,000
Government: 39,000
Information: -78,000

North America Office and

Industrial Fundamentals

The US industrial market finished Q3 with a positive absorption of 55,817,008 SF and vacancy of 5.1%. In the office market, vacancy remained at 9.5% with net absorption at a positive 9,727,184 SF. The Canadian office market finished Q3 with a positive absorption of 111,644 SF and vacancy of 12.2%.

US Office and Industrial Markets Absorption and Completions

Market Highlights


In the Class A sector, the vacancy rate for the office market decreased to 12.3% percent in Q3. The Class B vacancy decreased as well, down to 9.4% versus 9.5% in Q2 and 9.7% in Q1. Class C registered the lowest vacancy at 5.6%, which was down from Q2.

The quoted average asking rental rate for all classes in the office market increased to $24.76/sf in Q3 compared to $24.40 in Q2. The Class A sector increased to $30.94 in Q3 compared to $30.38 in Q2, while the Class B sector rose to $21.97 from $21.71 in Q2.

Delivery of buildings in the office market decreased in Q3 to 375 buildings, totaling over 19 million square feet. There was over 154 million sf of office space under construction at the end of Q3.


Although the Canadian office market recorded only 111,644 sf of positive net absorption in Q3, year-to-date a significant 2.59 million sf of office space has been absorbed across the key Canadian office markets, which is well above the five-year average of 820,000 sf of positive net absorption. The national office vacancy rate ended the third quarter at 12.2%, down 20 basis points from Q2 and 10 basis points year-over-year.

Top US Office and Industrial Markets Absorption YTD

Outlook and Opportunities

for Tenants

How can corporate tenants and occupiers use these statistics to their advantage?  Look at our local tenant guides to review the data that is specific to your market(s). By arming yourself with market data, you will have the knowledge you need to make smart decisions about your real estate portfolio, or to make the most of your next lease negotiation. Please contact us for more detailed market information, or with any additional inquiries.

With a continued demand for warehouse and distribution space, vacancy in the US industrial sector remained at 5.1% percent – the lowest it’s been since Q3 2001. This low availability caused the average asking rental rent to rise to $6.31 per square foot.

The overall vacancy rates for the US have remained steady, while the Canadian office market vacancy rate has decreased to 12.2%.