CBDs Growing, But at Moderate Pace (Chart of the Week)
According to research by JLL, the central business districts (CBD) in primary office markets have recorded a 49.3M SF of net absorption, 20.6M SF (-29.5%) short of the expansion that occurred in the previous cycle.
With current growth rates, JLL believes that these CBDs will reach their previous rates of expansion by 2017. More interestingly, however, is the fact that these growth patterns have helped the CBDs fully recover from the losses during the recession.
But it's not all positive: JLL notes that the occupancy growth in these markets has been slower this cycle due to competition with lower-costs (especially in the Sun Belt), slower or average levels of job growth in markets outside the Bay Area and Seattle and main industry drivers--such as the law and finance--showing contractionary activity.