Office market performance in the Americas was mixed in the third quarter of 2016, with healthy office-using job growth in the U.S. offset by a summer slowdown in net absorption and heightened caution ahead of the November election.
In Canada, the energy slowdown coupled with high levels of new supply drove up the overall vacancy rate.
In Mexico, year-to-date net absorption in Mexico City increased significantly compared with the year-earlier period.
U.S. venture capital (VC) funding slowed from the robust pace of 2015 but remained strong, with the Q3 2016 year-to-date total reaching the second-highest level since 2001 and supporting continued tech-tenant demand.
In an increasingly competitive labor market, tenants are seeking high-quality space offering ample amenities and located in dynamic live-work-play environments, both in downtown and suburban markets.
Despite uncertainty amid political and economic risk factors, we expect solid U.S. office-using job growth to support continued demand for office space through year-end 2016.