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www.dtz.com
2nd Quarter 2015
U.S. Offi ceTrends Report
2 | DTZ
Contents
U.S. Offi ce Sector Analysis...........................................................................................................3-4
Investment Sales.................................................................................................................................5
Net Absorption by Metro..............................................................................................................6-7
Vacancy Rates by Metro...............................................................................................................8-9
Asking Rents by Metro................................................................................................................10-11
Inventory by Metro.......................................................................................................................12-13
Methodology.......................................................................................................................................14
Jennifer EdwardsResearch Manager
2101 L Street, NW, Ste. 700
Washington, DC 20037
Kevin ThorpeChief Economist
2101 L Street, NW, Ste. 700
Washington, DC 20037
Rebecca RockeyEconomist
2101 L Street, NW, Ste. 700
Washington, DC 20037
Contacts:
www.dtz.com | 3
EconomyMidway through 2015, we see patterns quite similar to those we have seen before—weak
growth (or contraction) in the fi rst quarter followed by stronger growth in the remaining
quarters. This year, fi rst quarter real GDP contracted at a -0.2% annualized rate. That fi gure
was revised upwards from the earlier estimate of -0.7%. Real GDP in the second quarter of
2015 is already tracking much stronger, but will still likely fail to surpass the 2.5% mark.
After having contributed to that negative GDP growth in the fi rst quarter, the energy sector
is now showing signs of stabilization. A rebound in gas prices—from $2.05 per gallon in
January to $2.78 per gallon in late June—is helping ameliorate some of the pain felt by
major oil and gas fi rms that had to make signifi cant cuts in exploration and mining when
prices were dropping. Those cuts are certainly not over—job losses in energy-related
sectors continue to mount. But there is evidence that the worst of the oil price correction
is behind us. Still, there have been over 25,600 energy-related layoff s in Texas since prices
started to fall, most of which have happened in the last six months. The next several
months of data will be crucial in determining whether or not these trends are decelerating.
The labor markets continue to provide evidence of a solid economic foundation. After disappointing employment numbers in March and April,
job creation came back to life in May and June, registering a combined gain of 477,000 net new jobs. Exactly one-third of the 1.25 million
jobs created in 2015 have been in offi ce-using sectors, with administration, professional and technical services, and fi nance and insurance
accounting for nearly all of the offi ce-using job growth. We have many reasons to expect job growth to remain equally robust throughout the
rest of the year. For the fi rst time since 2000—when the Job Openings and Labor Turnover Survey (JOLTS) began—the number of job openings
currently exceeds the number of hires. The most recent data, released in May, revealed 5.4 million positions are waiting to be fi lled, compared
to 4.6 million in May 2014. In addition, nearly a quarter of those additional 750,000 jobs are business and professional positions. Given that
job openings are a harbinger of job creation, we expect job growth to average a monthly pace of 240,000 for the rest of the year.
Offi ce SectorAfter a weak start to the year, the U.S. offi ce sector was back on track in the second quarter of 2015. Demand for offi ce space was 20.9
million square feet (msf) in the second quarter, nearly double the 11.4 msf absorbed in the fi rst quarter of the year. Although the trend
towards space effi ciency continues to work against a full offi ce-sector recovery, the robust offi ce-using job growth numbers are now pushing
absorption back to pre-recession levels in most major markets. The vacancy rate declined 20 basis points (bps) to 14.2% in the second
quarter, down from 14.4% last quarter; vacancy is down 80 bps from a year ago.
While there is still room for vacancy rates to decline further—vacancy was 12.8% at the peak of the last cycle in the third quarter of 2007—they
are low enough to drive modest rental growth. Year-over-year growth in asking rents has exceeded 2% for six consecutive quarters; second-
quarter 2015 rent growth was 2.5%—with rents at a cyclical high of $22.92 per square foot, up from $22.32 in the second quarter of last year. Of
the 80 metros tracked, 57 reported rental rate increases in the second quarter compared to 53 that registered increases in the fi rst quarter.
Construction volume surged to 108.5 msf in the second quarter after hitting 98.5 msf in the fi rst quarter. Although new development is ramping
up, demand remains suffi cient. In fact, net absorption has exceeded deliveries in every single quarter since the third quarter of 2010. However,
the volume of deliveries relative to demand is rising—deliveries over the past four quarters were 61% of demand, up from 52% in the second
quarter of 2013. As this relationship between deliveries and demand inches upwards, we expect to see deceleration in rental rate growth and a
decline in building activity sometime in 2018.
U.S. Net Absorption vs. Vacancy
Source: DTZ ResearchSource: DTZ Research
Market Indicators
Net Absorption 20.9M
Asking Rents $22.92
Vacancy
Under
Construction 108.5M
Q122015
Trend (from previous Qtr)
Net Absorption, Selected Markets Q2 2015
U.S. Offi ce Sector Analysis
13.8%
14.2%
14.6%
15.0%
15.4%
0
4
8
12
16
20
24
28
Q2
13
Q3
13
Q4
13
Q1
14
Q2
14
Q3
14
Q4
14
Q1
15
Q2
15
Vaca
ncy
Rat
e
(msf
)
Absorption Vacancy Rate
-0.5
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
San
Jose
-Silic
onD
alla
sO
akla
nd-E
ast B
ayLo
s An
gele
sC
hica
goAt
lant
aPh
oeni
xR
alei
ghN
ew Y
ork
Den
ver
Nas
hville
Subu
rban
VA
Balti
mor
eM
iam
iTa
mpa
Was
hing
ton,
DC
Cen
tral N
JSt
. Lou
isSa
cram
ento
Cha
rlotte
Col
umbu
sSa
n D
iego
Min
neap
olis
Indi
anap
olis
Nor
ther
n N
JLo
uisv
illeC
inci
nnat
iSa
n Fr
anci
sco
Seat
tleD
ayto
nSa
n M
ateo
Cou
nty
Bost
onSu
burb
an M
DKa
nsas
City
(msf
)
14.2%
4 | DTZ
Asking RentsSelect Markets, Avg. Rent Q2 2015
Rents Yr/Yr % Chg.
New York, NY $70.09 3.0%
San Francisco, CA $66.77 14.5%
Washington, DC $51.36 1.9%
San Mateo County, CA $47.04 8.1%
San Jose-Silicon Valley, CA $34.24 4.5%
San Diego, CA $33.24 6.1%
Boston, MA $32.85 5.9%
Los Angeles, CA $31.92 3.9%
Suburban VA $31.64 -0.2%
Chicago, IL $28.86 2.6%
Houston, TX $28.55 1.3%
Northern NJ $27.65 2.0%
Suburban MD $26.12 -0.6%
Minneapolis, MN $25.99 4.5%
Central NJ $24.72 0.6%
Oakland-East Bay, CA $24.26 8.6%
Denver, CO $24.09 5.6%
Baltimore, MD $22.93 2.8%
Phoenix, AZ $22.76 4.5%
Dallas, TX $21.88 3.1%
Charlotte, NC $21.77 5.7%
Nashville, TN $21.49 7.6%
Raleigh, NC $21.18 3.3%
Sacramento, CA $20.64 1.2%
Tampa, FL $20.56 3.1%
Atlanta, GA $20.48 4.4%
Columbus, OH $20.33 2.7%
St. Louis, MO $19.06 1.0%
Kansas City, MO $18.63 3.6%
Indianapolis, IN $18.11 0.2%
Louisville, KY $17.65 1.7%
Milwaukee, WI $17.29 2.9%
Cincinnati, OH $17.09 -2.4%
Dayton, OH $14.56 -0.9%
Source: DTZ Research
Job GrowthMonth-over-month, 000s
Source: BLS
Another wide-ranging development is the dynamic between growth in CBDs and the
suburbs. We are now observing a transition to demand for Class B CBD space, and in some
instances, suburban space—enough to drive substantial diff erences in rent appreciation
rates. The general theme we are seeing is tenant demand has turned robust in almost
every CBD in the U.S. regardless of product type. Markets that have seen year-over-year
rent growth for Class B CBD exceed Class A CBD (as well as suburban space) include San
Francisco, New York City, Oakland and Northern New Jersey. There are some rare instances
where suburban rent growth is outpacing that of Class A CBD space; this is especially true
in the white-hot San Jose market.
Investment sales between January and May totaled $54.7 billion, up $15 billion from the
$39.7 billion during the same period a year ago. Cap rates declined 40 bps since the start
of the year, down from 6.8% in January to 6.4% in May. Cap rates compressed in both CBD
and suburban transactions—declining to 5.7% from 6.0% for CBD properties, and to 6.9%
from 7.3% for suburban ones. Global uncertainty has resulted in capital fl ows pouring into
the U.S. at a record pace: through July 8th of this year, year-to-date foreign investment
in U.S. commercial real estate is up 63% compared to the same period last year. This
aggressive infl ow of capital is pushing offi ce prices upward to new heights, particularly for
CBD assets. Average pricing is up 20.3% over its average from the same January through
May timeframe last year; pricing on suburban assets has grown three times faster than that
of CBD assets, 32.5% versus 10.3%.
OutlookAlthough we remain alert to changes in the underlying economic and fi nancial drivers,
the probability that any of these will sink the U.S. economic expansion is low. The Dow
Jones Industrial Average has risen almost 70% since the Greek crisis offi cially began in
2010. Puerto Rico debt totals $72 billion, just one-quarter of monthly tax revenue in the
U.S. These debt-related crises are not systemic in nature and will have fairly muted overall
impacts on the U.S. economy. China’s economy has been wobbling for two and a half years
but it has yet to derail the U.S. growth trajectory. Furthermore, in addition to the $5 trillion
that China has in its coff ers, which can be used to stimulate growth at any given time,
there is a cultural diff erence in the way Chinese individuals and corporations view equity
markets. Nevertheless, we anticipate extraordinary measures by the People’s Bank of China
to stabilize the Chinese stock markets. Also worth noting: whenever there is choppiness
overseas, investors fl ock to safe havens. That has a tendency to push U.S. Treasury rates
lower. If the global economic picture worsens, it is not out of the realm of possibility that the
10-year Treasury could dip below 2% again.
The U.S. economy is off and running. Barring a major exogenous shock or contagion, expect
GDP growth to average 2.5% in 2015—good enough to generate around 2.9 million jobs. The
U.S. offi ce sector will register 80 msf of absorption, vacancy rates will fall to 14%, and rent
growth will surpass 3%.
Source: BLS
1,097
983
967
737
550
511
347 149
Professional & Business Services
Trade, Transportation, Utilities
Education & Healthcare
Leisure & Hospitality
Retail
Government
Manufacturing
Construction
0
50
100
150
200
250
300
350
400
450
Jun
2014
Jul 2
014
Aug
2014
Sep
2014
Oct 2
014
Nov 2
014
Dec 2
014
Jan
2015
Feb
2015
Mar
201
5
Apr 2
015
May
201
5
Jun
2015
Total Nonfarm Office-Using
Job Openings(000s)
U.S. Offi ce Sector Analysis
Nonfarm Openings:5.4 million
www.dtz.com | 5
U.S. Offi ce Acquisitions by Buyer Type
Source: Real Capital Analytics
Source: Real Capital Analytics
U.S. Offi ce Sales Volume
U.S. Offi ce Cap Rates
Source: Real Capital Analytics
$0
$3
$6
$9
$12
$15
$18
$21
May
-10
Sep
-10
Jan-
11
May
-11
Sep
-11
Jan-
12
May
-12
Sep
-12
Jan-
13
May
-13
Sep
-13
Jan-
14
May
-14
Sep
-14
Jan-
15
May
-15
Bill
ions
Avg. = $7.6B
Source: Real Capital Analytics,
DTZ Research
Offi ce Sales VolumeSelect Markets, Jan - July 2015
$ Volume (Millions) Avg PSF
Manhattan, NY $12,780.3 $963
Chicago, IL $4,458.8 $259
San Jose, CA $4,284.5 $384
Boston, MA $3,729.9 $298
DC Metro $3,610.7 $437
San Francisco, CA $3,548.4 $524
Los Angeles, CA $2,917.9 $342
Seattle, WA $2,720.3 $353
Atlanta, GA $2,226.7 $161
Northern NJ $1,768.6 $209
Denver, CO $1,530.9 $197
Houston, TX $1,454.6 $299
Phoenix, AZ $1,389.7 $176
Dallas, TX $1,288.5 $157
San Diego, CA $1,193.6 $280
Raleigh/Durham, NC $923.2 $187
Minneapolis, MN $721.3 $108
Miami, FL $695.9 $246
St. Louis, MO $596.8 $63
Charlotte, NC $542.8 $182
East Bay, CA $406.6 $174
Nashville, TN $330.0 $178
Baltimore, MD $317.7 $168
Milwaukee, WI $265.9 $117
Indianapolis, IN $256.5 $91
Cincinnati, OH $226.0 $130
Louisville, KY $224.3 $141
Sacramento, CA $193.7 $147
Tampa, FL $126.6 $119
Columbus, OH $58.5 $74
Kansas City, MO $49.7 N/A
Investment Sales
4%
5%
6%
7%
8%
9%
May
-10
Sep-
10
Jan-
11
May
-11
Sep-
11
Jan-
12
May
-12
Sep-
12
Jan-
13
May
-13
Sep-
13
Jan-
14
May
-14
Sep-
14
Jan-
15
May
-15
CBD Suburban
$0
$40
$80
$120
$160
$200
$240
01' 02' 03' 04' 05' 06' 07' 08' 09' 10' 11' 12' 13' 14' Q114
Q115
Bill
ions
Cross-Border Inst'l/Eq Fund Listed/REITs Private User/other
6 | DTZ
2012 2013 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015r Q2 2015p
United States 46,869,000 51,023,000 74,549,000 17,236,000 21,771,000 24,334,000 11,371,000 20,904,000
Northeast 2,369,000 13,338,000 14,444,000 3,063,000 5,923,000 3,224,000 -1,348,000 1,460,000
Midwest 4,992,000 6,677,000 7,924,000 2,148,000 1,446,000 3,289,000 591,000 2,416,000
South 18,422,000 16,629,000 24,685,000 4,688,000 6,727,000 8,590,000 6,852,000 7,620,000
West 21,087,000 14,379,000 27,496,000 7,338,000 7,674,000 9,232,000 5,274,000 9,408,000
Albuquerque, NM 113,000 15,000 138,000 112,000 15,000 22,000 140,000 185,000
Atlanta-Sandy Springs-Marietta, GA 1,624,000 1,314,000 3,000,000 539,000 461,000 779,000 661,000 993,000
Austin-Round Rock, TX 1,408,000 631,000 676,000 221,000 189,000 52,000 312,000 509,000
Baltimore, MD 710,000 1,028,000 1,268,000 227,000 635,000 157,000 224,000 349,000
Birmingham-Hoover, AL 255,000 35,000 222,000 55,000 12,000 149,000 79,000 77,000
Boston-Cambridge, MA 691,000 1,749,000 2,300,000 569,000 871,000 786,000 846,000 -60,000
Buff alo-Niagara Falls, NY 195,000 -530,000 201,000 -39,000 219,000 66,000 37,000 89,000
Charleston-North Charleston, SC 255,000 72,000 192,000 -23,000 17,000 110,000 264,000 115,000
Charlotte-Gastonia-Concord, NC-SC 1,370,000 1,445,000 1,362,000 287,000 485,000 292,000 183,000 228,000
Chattanooga, TN-GA 53,000 -186,000 -65,000 -58,000 -19,000 26,000 46,000 71,000
Chicago-Joliet-Naperville, IL-IN-WI 2,191,000 1,488,000 3,600,000 644,000 794,000 1,530,000 120,000 1,078,000
Cincinnati-Middletown, OH-KY-IN 125,000 215,000 88,000 -104,000 118,000 167,000 132,000 69,000
Cleveland-Elyria-Mentor, OH 107,000 349,000 249,000 173,000 88,000 125,000 37,000 245,000
Colorado Springs, CO 249,000 426,000 -18,000 17,000 8,000 -40,000 96,000 -4,000
Columbia, SC -374,000 -34,000 181,000 66,000 84,000 105,000 114,000 72,000
Columbus, OH 290,000 246,000 300,000 150,000 143,000 -33,000 98,000 203,000
Dallas, TX 1,495,000 2,703,000 3,756,000 470,000 1,686,000 744,000 1,080,000 1,465,000
Dayton, OH 231,000 127,000 298,000 -11,000 142,000 155,000 40,000 38,000
Denver-Aurora, CO 1,341,000 1,892,000 2,437,000 484,000 955,000 572,000 192,000 622,000
Detroit-Warren-Livonia, MI 36,000 379,000 425,000 -4,000 24,000 267,000 34,000 133,000
Fairfi eld County, CT -416,000 452,000 -726,000 -388,000 369,000 -1,002,000 -283,000 -12,000
Ft. Lauderdale, FL 195,000 470,000 588,000 224,000 107,000 214,000 -72,000 215,000
Greensboro-Winston-Salem, NC 297,000 -104,000 318,000 -4,000 181,000 166,000 -132,000 23,000
Greenville, SC 324,000 156,000 -174,000 -42,000 121,000 20,000 74,000 6,000
Hartford-West Hartford-East Hartford, CT -47,000 176,000 623,000 206,000 130,000 49,000 164,000 -89,000
Honolulu, HI 197,000 145,000 -96,000 -50,000 -170,000 105,000 4,000 -88,000
Houston, TX 4,546,000 3,741,000 6,893,000 1,345,000 843,000 3,037,000 1,742,000 -220,000
Indianapolis, IN 454,000 493,000 245,000 62,000 78,000 40,000 10,000 119,000
Jacksonville, FL 89,000 115,000 267,000 -126,000 120,000 189,000 47,000 133,000
Kansas City, MO-KS 603,000 573,000 396,000 110,000 -132,000 292,000 105,000 -97,000
Knoxville, TN 157,000 -251,000 153,000 16,000 71,000 89,000 140,000 -85,000
Las Vegas-Paradise, NV 925,000 271,000 716,000 243,000 354,000 212,000 -75,000 253,000
Lexington-Fayette, KY 119,000 -111,000 -11,000 24,000 -33,000 -15,000 127,000 56,000
Little Rock-N. Little Rock, AR -12,000 5,000 150,000 0 2,000 152,000 6,000 107,000
Long Island, NY 190,000 308,000 -228,000 81,000 -278,000 -66,000 -145,000 300,000
Los Angeles-Long Beach-Glendale, CA 1,665,000 710,000 3,247,000 696,000 754,000 1,343,000 50,000 1,233,000
Louisville, KY-IN -77,000 606,000 392,000 112,000 110,000 22,000 111,000 106,000
Madison, WI 231,000 160,000 -113,000 81,000 -106,000 -10,000 130,000 152,000
Memphis, TN-MS-AR 72,000 -93,000 279,000 115,000 -29,000 81,000 353,000 22,000
Miami-Dade, FL 964,000 1,146,000 1,220,000 393,000 340,000 306,000 -6,000 301,000
Milwaukee-Waukesha-West Allis, WI 79,000 350,000 472,000 222,000 89,000 41,000 -110,000 -198,000
Minneapolis-St. Paul-Bloomington, MN-WI 438,000 724,000 1,329,000 317,000 394,000 434,000 160,000 133,000
Net Absorption
www.dtz.com | 7
2012 2013 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015r Q2 2015p
Nashville-Davidson-Murfreesboro, TN 1,102,000 36,000 767,000 299,000 121,000 294,000 280,000 453,000
New Haven-Milford, CT 100,000 -118,000 -13,000 -8,000 15,000 28,000 15,000 14,000
Northern New Jersey -812,000 514,000 603,000 285,000 627,000 -634,000 -89,000 110,000
Central New Jersey -433,000 2,108,000 690,000 110,000 332,000 -279,000 113,000 270,000
New Orleans-Metairie-Kenner, LA 227,000 -52,000 227,000 70,000 61,000 21,000 -47,000 54,000
New York, NY 2,602,000 7,116,000 9,301,000 1,454,000 2,743,000 3,561,000 -1,719,000 709,000
Oakland-East Bay, CA 2,224,000 458,000 1,124,000 276,000 429,000 245,000 996,000 1,396,000
Oklahoma City, OK 2,722,000 -2,000 287,000 -62,000 200,000 22,000 251,000 95,000
Omaha, NE-IA 45,000 702,000 278,000 211,000 4,000 -5,000 -101,000 76,000
Orange County, CA (Anaheim-Santa Ana) 1,306,000 819,000 2,254,000 1,084,000 471,000 1,318,000 147,000 406,000
Orlando, FL 414,000 832,000 316,000 -88,000 153,000 157,000 256,000 282,000
Philadelphia-Camden-Wilmington, PA-NJ-DE 222,000 1,037,000 1,431,000 870,000 362,000 562,000 -371,000 723,000
Phoenix-Mesa-Scottsdale, AZ 1,778,000 1,173,000 2,401,000 736,000 436,000 597,000 64,000 850,000
Pittsburgh, PA 467,000 264,000 423,000 -25,000 383,000 231,000 166,000 -40,000
Portland-South Portland-Biddeford, ME -120,000 295,000 -150,000 29,000 -27,000 -159,000 -61,000 9,000
Portland-Vancouver-Beaverton, OR-WA 774,000 54,000 1,085,000 244,000 41,000 418,000 131,000 96,000
Raleigh-Durham, NC 215,000 770,000 1,458,000 254,000 479,000 768,000 230,000 828,000
Rochester, NY -231,000 9,000 122,000 -5,000 23,000 18,000 102,000 36,000
Sacramento-Arden-Arcade-Roseville, CA 876,000 1,047,000 737,000 110,000 194,000 12,000 259,000 257,000
Saint Louis, MO-IL 133,000 784,000 367,000 370,000 -183,000 264,000 -190,000 265,000
Salt Lake City, UT 405,000 280,000 316,000 133,000 67,000 -16,000 78,000 69,000
San Antonio, TX 1,085,000 491,000 874,000 181,000 302,000 250,000 205,000 146,000
San Diego-Carlsbad-San Marcos, CA 1,192,000 887,000 1,412,000 -251,000 650,000 846,000 178,000 187,000
San Francisco, CA 2,328,000 779,000 3,235,000 539,000 566,000 1,040,000 437,000 66,000
San Jose-Silicon Valley, CA 3,588,000 2,755,000 3,567,000 1,809,000 1,448,000 1,099,000 1,445,000 3,754,000
San Mateo County, CA -357,000 653,000 2,270,000 342,000 982,000 392,000 981,000 2,000
Seattle-Tacoma-Bellevue, WA 2,429,000 1,961,000 2,529,000 759,000 507,000 979,000 279,000 64,000
Suburban MD 364,000 219,000 -1,146,000 334,000 -300,000 -213,000 116,000 -80,000
Suburban VA -2,015,000 -132,000 -380,000 142,000 -35,000 -426,000 -197,000 370,000
Syracuse, NY -155,000 121,000 -241,000 20,000 7,000 1,000 -14,000 132,000
Tampa-St. Petersburg-Clearwater, FL 70,000 922,000 790,000 4,000 215,000 436,000 284,000 297,000
Tucson, AZ -65,000 -92,000 -12,000 0 -30,000 68,000 -22,000 22,000
Tulsa, OK 383,000 85,000 163,000 -87,000 88,000 77,000 7,000 134,000
Ventura County, CA 121,000 147,000 154,000 55,000 -3,000 21,000 -105,000 39,000
Washington, DC -95,000 551,000 -490,000 -321,000 -256,000 198,000 -25,000 275,000
Westchester County, NY 115,000 -163,000 110,000 -97,000 147,000 63,000 -107,000 -730,000
West Palm Beach-Boca Raton, FL 483,000 218,000 1,151,000 121,000 316,000 331,000 139,000 223,000
Wichita, KS 30,000 87,000 -10,000 -72,000 -6,000 21,000 127,000 200,000
Methodology and data sources explained on page 14
p = preliminary
r = revision
Net Absorption
8 | DTZ
2012 2013 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015r Q2 2015p
(Quarterly Average)
United States 15.8% 15.3% 14.9% 15.0% 14.8% 14.5% 14.4% 14.2%
Northeast 16.0% 15.6% 15.7% 15.8% 15.5% 15.6% 15.8% 15.7%
Midwest 19.3% 19.0% 18.3% 18.4% 18.2% 18.1% 18.1% 17.9%
South 14.6% 14.2% 13.9% 14.1% 13.8% 13.5% 13.2% 12.9%
West 14.9% 14.2% 13.4% 13.6% 13.3% 12.8% 12.9% 12.6%
Albuquerque, NM 14.1% 13.5% 13.9% 13.8% 13.7% 13.6% 12.5% 11.2%
Atlanta-Sandy Springs-Marietta, GA 20.3% 19.6% 18.3% 18.3% 18.3% 18.0% 17.6% 17.0%
Austin-Round Rock, TX 10.6% 8.6% 8.1% 8.1% 7.8% 8.0% 8.1% 8.5%
Baltimore, MD 18.7% 17.0% 16.0% 16.2% 15.7% 15.7% 15.6% 15.4%
Birmingham-Hoover, AL 10.2% 9.0% 8.9% 8.9% 8.8% 8.5% 8.0% 7.6%
Boston-Cambridge, MA 13.5% 12.1% 11.5% 11.7% 11.4% 10.8% 10.4% 10.0%
Buff alo-Niagara Falls, NY 11.0% 11.4% 13.8% 14.2% 13.9% 13.6% 13.6% 13.1%
Charleston-North Charleston, SC 10.3% 10.7% 9.8% 10.2% 10.0% 8.9% 7.5% 7.8%
Charlotte-Gastonia-Concord, NC-SC 12.3% 11.6% 10.3% 10.3% 10.2% 9.8% 9.8% 9.3%
Chattanooga, TN-GA 13.6% 16.9% 18.6% 19.0% 19.1% 18.6% 18.9% 17.5%
Chicago-Joliet-Naperville, IL-IN-WI 17.1% 16.4% 15.7% 15.6% 15.9% 16.2% 15.8% 15.9%
Cincinnati-Middletown, OH-KY-IN 24.7% 23.9% 23.5% 23.8% 23.5% 23.3% 24.3% 24.2%
Cleveland-Elyria-Mentor, OH 21.3% 22.5% 22.0% 21.9% 21.8% 21.7% 21.6% 21.0%
Colorado Springs, CO 13.3% 11.9% 12.1% 12.0% 12.0% 12.2% 11.8% 11.6%
Columbia, SC 15.7% 16.9% 15.3% 15.7% 14.9% 14.4% 13.5% 12.8%
Columbus, OH 16.5% 16.2% 16.1% 16.1% 15.6% 16.2% 16.2% 15.8%
Dallas, TX 21.1% 20.3% 19.4% 19.7% 19.2% 19.2% 19.3% 18.7%
Dayton, OH 28.9% 29.3% 27.3% 27.9% 26.9% 26.4% 26.6% 25.7%
Denver-Aurora, CO 12.6% 12.0% 11.2% 11.3% 11.1% 10.9% 10.8% 10.4%
Detroit-Warren-Livonia, MI 23.8% 23.1% 22.6% 22.7% 22.7% 22.3% 22.3% 22.1%
Fairfi eld County, CT 21.8% 21.8% 21.6% 21.7% 20.9% 23.0% 23.5% 23.5%
Ft. Lauderdale, FL 17.1% 16.2% 14.3% 14.5% 14.1% 13.3% 13.7% 13.1%
Greensboro-Winston-Salem, NC 16.6% 16.5% 16.7% 17.2% 16.8% 15.8% 16.6% 16.6%
Greenville, SC 15.6% 13.0% 13.7% 14.5% 13.2% 12.9% 12.4% 12.3%
Hartford-West Hartford-East Hartford, CT 23.9% 23.2% 20.9% 20.9% 20.5% 20.3% 19.6% 20.1%
Honolulu, HI 6.2% 5.6% 5.7% 5.5% 6.2% 5.8% 5.8% 6.1%
Houston, TX 11.9% 11.5% 10.8% 10.7% 11.0% 10.7% 11.4% 12.5%
Indianapolis, IN 20.0% 19.5% 19.3% 19.3% 19.3% 19.2% 19.2% 19.1%
Jacksonville, FL 16.6% 16.5% 16.3% 16.8% 16.4% 15.6% 15.5% 15.0%
Kansas City, MO-KS 20.5% 18.8% 18.6% 19.0% 18.6% 17.8% 17.8% 18.0%
Knoxville, TN 13.1% 14.3% 16.3% 17.1% 16.1% 14.8% 12.9% 14.1%
Las Vegas-Paradise, NV 20.6% 17.8% 16.7% 17.2% 16.1% 15.6% 15.9% 15.9%
Lexington-Fayette, KY 19.1% 18.2% 19.3% 18.7% 19.5% 19.8% 17.0% 18.4%
Little Rock-N. Little Rock, AR 11.4% 11.8% 11.9% 12.5% 12.4% 11.0% 10.9% 10.0%
Long Island, NY 16.1% 14.7% 15.0% 14.7% 15.2% 15.3% 15.6% 15.0%
Los Angeles-Long Beach-Glendale, CA 15.7% 15.8% 15.0% 15.2% 15.0% 14.5% 14.6% 14.2%
Louisville, KY-IN 14.0% 13.2% 12.1% 12.0% 12.3% 11.8% 11.0% 10.8%
Madison, WI 9.7% 9.8% 10.4% 10.0% 10.5% 10.5% 10.0% 9.3%
Memphis, TN-MS-AR 18.0% 18.6% 17.7% 17.5% 17.7% 17.3% 17.1% 17.1%
Miami-Dade, FL 15.2% 14.2% 12.9% 13.1% 12.7% 12.4% 12.4% 12.0%
Milwaukee-Waukesha-West Allis, WI 20.8% 20.9% 19.5% 20.0% 19.0% 18.9% 19.2% 20.1%
Minneapolis-St. Paul-Bloomington, MN-WI 17.8% 16.3% 15.4% 15.6% 15.0% 15.0% 14.2% 14.4%
Offi ce Vacancy Rates
www.dtz.com | 9
2012 2013 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015r Q2 2015p
(Quarterly Average)
Nashville-Davidson-Murfreesboro, TN 9.9% 9.4% 9.6% 9.6% 9.3% 9.2% 8.8% 8.1%
New Haven-Milford, CT 15.8% 16.3% 16.9% 17.1% 16.9% 16.6% 16.6% 16.3%
Northern New Jersey 17.5% 17.9% 19.0% 19.1% 18.4% 19.0% 19.8% 19.7%
Central New Jersey 18.8% 17.6% 15.8% 16.0% 15.4% 15.8% 16.9% 16.5%
New Orleans-Metairie-Kenner, LA 9.6% 9.6% 9.3% 9.4% 9.2% 9.1% 9.3% 9.2%
New York, NY 12.7% 11.3% 9.8% 10.1% 9.5% 9.3% 9.8% 9.6%
Oakland-East Bay, CA 16.6% 15.1% 14.5% 14.6% 14.3% 14.2% 13.1% 12.0%
Oklahoma City, OK 13.2% 11.2% 10.6% 11.2% 10.2% 10.1% 9.5% 9.2%
Omaha, NE-IA 14.9% 15.6% 15.0% 14.8% 15.1% 15.1% 15.6% 15.2%
Orange County, CA (Anaheim-Santa Ana) 15.1% 14.0% 13.8% 13.9% 13.8% 12.8% 12.7% 12.5%
Orlando, FL 12.2% 11.1% 10.6% 11.1% 10.7% 10.2% 9.4% 8.7%
Philadelphia-Camden-Wilmington, PA-NJ-DE 11.4% 11.5% 11.3% 11.3% 11.2% 11.2% 11.3% 11.0%
Phoenix-Mesa-Scottsdale, AZ 23.5% 21.9% 19.7% 19.7% 19.6% 19.1% 19.4% 19.3%
Pittsburgh, PA 14.5% 14.4% 15.5% 15.7% 15.7% 15.2% 15.4% 15.5%
Portland-South Portland-Biddeford, ME 12.1% 11.5% 11.0% 10.6% 10.8% 11.7% 12.0% 11.9%
Portland-Vancouver-Beaverton, OR-WA 11.9% 11.1% 9.8% 9.9% 9.8% 8.8% 8.7% 8.6%
Raleigh-Durham, NC 14.8% 13.4% 12.5% 12.7% 12.2% 12.3% 11.8% 11.3%
Rochester, NY 15.4% 16.0% 15.8% 15.8% 15.7% 16.0% 15.4% 15.1%
Sacramento-Arden-Arcade-Roseville, CA 17.1% 15.7% 14.6% 14.7% 14.4% 14.4% 14.0% 13.7%
Saint Louis, MO-IL 16.6% 16.0% 14.6% 14.4% 14.3% 14.6% 14.7% 14.1%
Salt Lake City, UT 11.5% 11.4% 12.5% 12.8% 12.6% 12.7% 12.4% 13.2%
San Antonio, TX 16.9% 16.6% 15.7% 15.8% 15.6% 15.3% 15.1% 14.9%
San Diego-Carlsbad-San Marcos, CA 18.2% 17.9% 17.7% 18.6% 18.0% 16.0% 15.9% 15.9%
San Francisco, CA 9.3% 8.7% 7.3% 7.7% 7.1% 6.2% 5.7% 5.7%
San Jose-Silicon Valley, CA 13.4% 12.4% 10.9% 11.0% 10.5% 10.0% 10.1% 9.0%
San Mateo County, CA 13.6% 13.5% 10.9% 11.5% 10.3% 9.8% 9.6% 9.6%
Seattle-Tacoma-Bellevue, WA 11.1% 10.4% 9.5% 9.6% 9.4% 9.0% 9.0% 9.1%
Suburban MD 15.5% 15.9% 17.9% 17.6% 18.0% 18.5% 18.4% 18.5%
Suburban VA 15.9% 16.9% 18.3% 18.1% 18.4% 18.8% 19.0% 18.8%
Syracuse, NY 15.9% 15.2% 16.9% 16.9% 16.8% 16.8% 16.8% 16.1%
Tampa-St. Petersburg-Clearwater, FL 20.1% 19.0% 18.2% 18.6% 18.2% 17.5% 17.1% 16.6%
Tucson, AZ 14.8% 16.1% 17.5% 17.5% 18.1% 17.1% 17.8% 17.7%
Tulsa, OK 15.0% 14.3% 14.3% 14.7% 14.3% 14.0% 14.2% 13.6%
Ventura County, CA 23.7% 24.3% 21.6% 21.4% 21.5% 21.1% 24.4% 23.7%
Washington, DC 10.4% 10.4% 11.2% 11.2% 11.5% 11.2% 11.3% 11.0%
Westchester County, NY 19.8% 19.1% 20.2% 20.5% 20.1% 19.9% 20.1% 22.1%
West Palm Beach-Boca Raton, FL 13.8% 12.3% 9.5% 10.2% 8.9% 8.1% 7.6% 6.7%
Wichita, KS 17.4% 17.5% 16.3% 16.4% 16.5% 16.3% 15.4% 15.5%
Methodology and data sources explained on page 14
p = preliminary
r = revision
Offi ce Vacancy Rates
10 | DTZ
Asking Rents
2012 2013 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015r Q2 2015p
(Quarterly Average)
United States $21.72 $21.92 $22.40 $22.35 $22.45 $22.58 $22.73 $22.92
Northeast $24.38 $24.65 $25.19 $25.15 $25.23 $25.27 $25.35 $25.50
Midwest $18.26 $18.12 $18.21 $18.18 $18.24 $18.28 $18.34 $18.37
South $20.48 $20.50 $20.80 $20.74 $20.84 $20.90 $21.03 $21.17
West $24.27 $24.97 $26.00 $25.94 $26.06 $26.46 $26.77 $27.18
Albuquerque, NM $15.29 $15.03 $14.84 $14.81 $14.92 $14.96 $15.14 $14.27
Atlanta-Sandy Springs-Marietta, GA $19.37 $19.39 $19.81 $19.62 $19.92 $20.21 $20.48 $20.48
Austin-Round Rock, TX $25.11 $26.88 $28.01 $27.87 $28.40 $27.90 $28.07 $28.77
Baltimore, MD $21.88 $22.62 $22.40 $22.30 $22.23 $22.72 $22.53 $22.93
Birmingham-Hoover, AL $17.92 $17.52 $17.16 $17.20 $17.10 $17.15 $17.32 $17.27
Boston-Cambridge, MA $30.27 $29.90 $31.10 $31.03 $30.96 $31.52 $32.83 $32.85
Buff alo-Niagara Falls, NY $16.70 $16.56 $16.16 $16.41 $15.96 $16.00 $15.88 $15.77
Charleston-North Charleston, SC $18.30 $17.21 $17.72 $17.86 $17.81 $17.74 $17.62 $17.55
Charlotte-Gastonia-Concord, NC-SC $19.86 $19.99 $20.67 $20.60 $20.75 $20.90 $21.32 $21.77
Chattanooga, TN-GA $15.02 $15.06 $14.69 $14.66 $14.66 $14.67 $14.81 $14.90
Chicago-Joliet-Naperville, IL-IN-WI $26.05 $27.12 $28.41 $28.13 $28.75 $28.81 $28.56 $28.86
Cincinnati-Middletown, OH-KY-IN $17.78 $17.55 $17.47 $17.51 $17.49 $17.34 $17.22 $17.09
Cleveland-Elyria-Mentor, OH $18.07 $17.45 $17.41 $17.40 $17.47 $17.34 $17.34 $17.37
Colorado Springs, CO $16.47 $16.34 $16.26 $16.24 $16.35 $16.28 $16.24 $16.26
Columbia, SC $15.51 $15.73 $15.57 $15.53 $15.45 $15.48 $15.58 $15.62
Columbus, OH $18.25 $19.53 $19.88 $19.79 $19.91 $20.05 $20.10 $20.33
Dallas, TX $19.79 $20.27 $21.31 $21.23 $21.41 $21.50 $21.71 $21.88
Dayton, OH $14.47 $14.57 $14.67 $14.69 $14.66 $14.74 $14.55 $14.56
Denver-Aurora, CO $20.40 $21.74 $22.96 $22.82 $23.12 $23.48 $23.78 $24.09
Detroit-Warren-Livonia, MI $17.91 $16.27 $16.39 $16.40 $16.36 $16.45 $16.47 $16.60
Fairfi eld County, CT $32.61 $33.69 $33.38 $33.43 $34.23 $32.47 $32.89 $34.09
Ft. Lauderdale, FL $23.90 $23.18 $23.18 $23.18 $23.34 $23.43 $23.81 $23.81
Greensboro-Winston-Salem, NC $15.30 $15.47 $15.64 $15.65 $15.61 $15.69 $15.47 $15.71
Greenville, SC $15.61 $15.55 $16.31 $16.10 $16.27 $16.92 $16.98 $16.38
Hartford-West Hartford-East Hartford, CT $19.02 $19.18 $19.31 $19.30 $19.15 $19.10 $18.89 $19.06
Honolulu, HI $27.48 $25.08 $23.34 $23.50 $23.25 $22.82 $22.96 $22.71
Houston, TX $24.61 $25.37 $27.22 $27.07 $27.16 $27.31 $27.49 $28.55
Indianapolis, IN $18.08 $18.06 $18.08 $18.07 $18.08 $18.08 $18.07 $18.11
Jacksonville, FL $17.01 $17.02 $16.87 $16.70 $16.80 $16.96 $17.19 $17.29
Kansas City, MO-KS $17.91 $18.02 $18.07 $17.98 $18.13 $18.18 $18.51 $18.63
Knoxville, TN $15.71 $15.07 $15.23 $15.15 $15.49 $15.27 $15.30 $15.06
Las Vegas-Paradise, NV $20.63 $19.62 $19.32 $19.58 $19.08 $19.09 $19.17 $19.24
Lexington-Fayette, KY $15.61 $15.50 $15.67 $15.72 $15.66 $15.61 $15.54 $15.60
Little Rock-N. Little Rock, AR $15.28 $15.32 $15.50 $15.44 $15.61 $15.58 $15.29 $15.41
Long Island, NY $25.66 $25.70 $26.40 $26.60 $26.31 $26.29 $26.44 $27.06
Los Angeles-Long Beach-Glendale, CA $29.04 $29.58 $30.78 $30.72 $30.84 $31.20 $31.08 $31.92
Louisville, KY-IN $16.59 $16.96 $17.17 $17.35 $17.36 $17.03 $17.59 $17.65
Madison, WI $17.16 $16.47 $15.84 $15.88 $15.76 $15.77 $15.56 $15.44
Memphis, TN-MS-AR $18.79 $18.85 $18.94 $18.92 $19.05 $18.89 $18.88 $18.95
Miami-Dade, FL $27.16 $27.30 $27.95 $27.99 $28.01 $28.08 $28.13 $28.57
Milwaukee-Waukesha-West Allis, WI $17.96 $17.41 $16.90 $16.81 $16.80 $16.73 $17.36 $17.29
Minneapolis-St. Paul-Bloomington, MN-WI $24.63 $23.97 $24.96 $24.87 $24.96 $25.46 $26.08 $25.99
www.dtz.com | 11
Asking Rents
2012 2013 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015r Q2 2015p
(Quarterly Average)
Nashville-Davidson-Murfreesboro, TN $19.47 $20.19 $20.22 $19.98 $19.89 $20.66 $21.33 $21.49
New Haven-Milford, CT $20.44 $19.52 $18.69 $18.84 $18.64 $18.34 $18.17 $18.28
Northern New Jersey $27.43 $26.91 $27.47 $27.11 $27.48 $27.54 $27.83 $27.65
Central New Jersey $24.80 $24.47 $24.76 $24.80 $24.92 $24.73 $24.84 $24.72
New Orleans-Metairie-Kenner, LA $15.09 $15.10 $15.08 $15.03 $15.09 $15.16 $15.32 $15.09
New York, NY $57.70 $63.20 $68.59 $68.05 $68.82 $70.28 $69.73 $70.09
Oakland-East Bay, CA $21.27 $21.72 $22.46 $22.33 $22.55 $22.96 $23.39 $24.26
Oklahoma City, OK $13.16 $13.15 $13.37 $13.28 $13.35 $13.46 $13.35 $13.66
Omaha, NE-IA $16.82 $16.80 $16.59 $16.53 $16.62 $16.63 $16.42 $16.35
Orange County, CA (Anaheim-Santa Ana) $22.74 $23.16 $24.51 $24.24 $24.72 $25.20 $25.68 $26.28
Orlando, FL $19.47 $18.96 $18.91 $18.88 $18.88 $19.05 $19.41 $19.39
Philadelphia-Camden-Wilmington, PA-NJ-DE $23.24 $23.14 $23.43 $23.41 $23.52 $23.57 $23.65 $23.71
Phoenix-Mesa-Scottsdale, AZ $20.28 $20.40 $21.87 $21.77 $22.00 $22.13 $22.37 $22.76
Pittsburgh, PA $19.39 $19.30 $19.78 $19.60 $19.84 $20.00 $20.07 $20.25
Portland-South Portland-Biddeford, ME $13.63 $12.66 $12.67 $12.65 $12.63 $12.76 $12.68 $12.79
Portland-Vancouver-Beaverton, OR-WA $20.59 $21.03 $21.77 $21.79 $22.05 $22.07 $22.32 $22.50
Raleigh-Durham, NC $19.94 $19.61 $20.78 $20.51 $21.04 $21.07 $21.09 $21.18
Rochester, NY $13.91 $14.14 $14.43 $14.45 $14.32 $14.59 $14.76 $14.60
Sacramento-Arden-Arcade-Roseville, CA $20.37 $20.01 $20.31 $20.40 $20.40 $20.28 $20.52 $20.64
Saint Louis, MO-IL $18.82 $18.67 $18.84 $18.87 $18.89 $18.85 $18.91 $19.06
Salt Lake City, UT $18.43 $19.45 $19.19 $19.13 $19.07 $19.27 $19.39 $19.56
San Antonio, TX $19.61 $19.64 $19.73 $19.65 $19.87 $19.76 $19.93 $20.04
San Diego-Carlsbad-San Marcos, CA $28.73 $29.97 $31.26 $31.32 $31.20 $31.62 $32.04 $33.24
San Francisco, CA $43.56 $50.01 $59.00 $58.30 $59.35 $62.75 $63.22 $66.77
San Jose-Silicon Valley, CA $27.65 $30.81 $32.77 $32.75 $32.41 $33.63 $34.20 $34.24
San Mateo County, CA $39.11 $41.29 $43.70 $43.50 $43.91 $45.23 $46.88 $47.04
Seattle-Tacoma-Bellevue, WA $26.94 $27.31 $27.99 $27.97 $28.07 $28.11 $28.36 $28.77
Suburban MD $26.42 $26.65 $26.23 $26.29 $26.21 $26.08 $26.07 $26.12
Suburban VA $31.51 $31.64 $31.72 $31.69 $31.76 $31.82 $31.67 $31.64
Syracuse, NY $15.47 $15.35 $14.56 $14.48 $14.50 $14.58 $14.48 $14.49
Tampa-St. Petersburg-Clearwater, FL $19.91 $19.61 $20.00 $19.94 $20.16 $20.04 $20.36 $20.56
Tucson, AZ $19.02 $19.00 $18.74 $18.78 $18.82 $18.62 $18.73 $18.73
Tulsa, OK $15.76 $16.00 $15.98 $15.91 $16.03 $16.03 $15.97 $16.14
Ventura County, CA $23.22 $22.82 $22.90 $22.85 $22.99 $22.99 $23.08 $23.22
Washington, DC $49.80 $49.51 $50.45 $50.40 $50.29 $50.40 $51.13 $51.36
Westchester County, NY $25.47 $26.07 $27.13 $27.14 $27.20 $27.23 $27.11 $27.06
West Palm Beach-Boca Raton, FL $26.85 $25.58 $26.07 $25.97 $26.26 $26.33 $26.31 $26.65
Wichita, KS $11.78 $11.76 $11.50 $11.55 $11.43 $11.55 $11.61 $11.52
Methodology and data sources explained on page 14
p = preliminary
r = revision
12 | DTZ
Inventory
InventoryQ2 2015
Vacant StockQ2 2015
Inventory Change (YTD 2015)
U/C (as of Q2 2015)
National Total 5,466,397,000 740,220,000 26,845,000 108,521,000
Albuquerque, NM 13,637,000 1,523,000 0 0
Atlanta-Sandy Springs-Marietta, GA 172,911,000 29,395,000 0 702,000
Austin-Round Rock, TX 42,731,000 3,638,000 1,131,000 2,929,000
Baltimore, MD 78,101,000 12,043,000 125,000 2,075,000
Birmingham-Hoover, AL 18,653,000 1,424,000 0 33,000
Boston-Cambridge, MA 154,310,000 15,462,000 0 5,246,000
Buff alo-Niagara Falls, NY 21,318,000 2,801,000 31,000 547,000
Charleston-North Charleston, SC 8,517,000 667,000 319,000 213,000
Charlotte-Gastonia-Concord, NC-SC 85,640,000 7,965,000 225,000 1,446,000
Chattanooga, TN-GA 4,986,000 873,000 76,000 0
Chicago-Joliet-Naperville, IL-IN-WI 257,020,000 40,866,000 689,000 2,995,000
Cincinnati-Middletown, OH-KY-IN 33,169,000 8,020,000 250,000 437,000
Cleveland-Elyria-Mentor, OH 36,740,000 7,699,000 0 660,000
Colorado Springs, CO 28,376,000 3,292,000 0 0
Columbia, SC 10,937,000 1,400,000 20,000 151,000
Columbus, OH 27,685,000 4,369,000 343,000 315,000
Dallas, TX 209,781,000 39,183,000 1,897,000 6,079,000
Dayton, OH 14,229,000 3,660,000 0 51,000
Denver-Aurora, CO 171,724,000 17,859,000 293,000 3,750,000
Detroit-Warren-Livonia, MI 76,054,000 16,815,000 0 180,000
Fairfi eld County, CT 49,522,000 11,638,000 28,000 28,000
Ft. Lauderdale, FL 27,800,000 3,635,000 94,000 958,000
Greensboro-Winston-Salem, NC 18,133,000 3,019,000 43,000 74,000
Greenville, SC 9,082,000 1,116,000 26,000 138,000
Hartford-West Hartford-East Hartford, CT 24,803,000 4,978,000 27,000 64,000
Honolulu, HI 25,749,000 1,573,000 0 0
Houston, TX 304,034,000 38,004,000 7,732,000 13,859,000
Indianapolis, IN 31,862,000 6,086,000 0 0
Jacksonville, FL 25,095,000 3,758,000 24,000 24,000
Kansas City, MO-KS 49,584,000 8,925,000 77,000 468,000
Knoxville, TN 7,164,000 1,009,000 0 0
Las Vegas-Paradise, NV 27,142,000 4,327,000 309,000 234,000
Lexington-Fayette, KY 4,671,000 861,000 150,000 94,000
Little Rock-N. Little Rock, AR 10,836,000 1,078,000 0 73,000
Long Island, NY 55,738,000 8,361,000 0 0
Los Angeles-Long Beach-Glendale, CA 282,264,000 40,081,000 671,000 4,029,000
Louisville, KY-IN 21,704,000 2,344,000 0 150,000
Madison, WI 22,451,000 2,086,000 0 40,000
Memphis, TN-MS-AR 20,186,000 3,455,000 415,000 610,000
Miami-Dade, FL 85,198,000 10,253,000 107,000 941,000
Milwaukee-Waukesha-West Allis, WI 27,834,000 5,595,000 0 1,574,000
Minneapolis-St. Paul-Bloomington, MN-WI 64,890,000 9,344,000 0 170,000
Nashville-Davidson-Murfreesboro, TN 34,094,000 2,762,000 392,000 2,332,000
New Haven-Milford, CT 12,535,000 2,039,000 20,000 508,000
Northern New Jersey 93,943,000 18,507,000 0 1,008,000
Central New Jersey 56,951,000 9,397,000 0 677,000
New Orleans-Metairie-Kenner, LA 36,376,000 3,335,000 35,000 49,000
www.dtz.com | 13
Inventory
InventoryQ2 2015
Vacant StockQ2 2015
Inventory Change (YTD 2015)
U/C (as of Q2 2015)
New York, NY 435,098,000 41,769,000 0 6,653,000
Oakland-East Bay, CA 109,692,000 13,163,000 176,000 0
Oklahoma City, OK 20,457,000 1,875,000 170,000 885,000
Omaha, NE-IA 19,346,000 2,949,000 0 421,000
Orange County, CA (Anaheim-Santa Ana) 118,919,000 14,865,000 59,000 647,000
Orlando, FL 33,836,000 2,931,000 17,000 172,000
Philadelphia-Camden-Wilmington, PA-NJ-DE 242,644,000 26,691,000 137,000 1,986,000
Phoenix-Mesa-Scottsdale, AZ 96,618,000 18,647,000 1,041,000 4,366,000
Pittsburgh, PA 52,051,000 8,051,000 298,000 2,057,000
Portland-South Portland-Biddeford, ME 17,938,000 2,144,000 0 41,000
Portland-Vancouver-Beaverton, OR-WA 42,071,000 3,628,000 157,000 1,170,000
Raleigh-Durham, NC 49,757,000 5,623,000 1,204,000 1,017,000
Rochester, NY 15,953,000 2,415,000 0 295,000
Sacramento-Arden-Arcade-Roseville, CA 87,363,000 11,969,000 0 0
Saint Louis, MO-IL 48,505,000 6,839,000 0 116,000
Salt Lake City, UT 32,506,000 4,298,000 367,000 1,124,000
San Antonio, TX 31,400,000 4,672,000 276,000 884,000
San Diego-Carlsbad-San Marcos, CA 71,917,000 11,455,000 597,000 1,756,000
San Francisco, CA 89,016,000 5,074,000 0 5,095,000
San Jose-Silicon Valley, CA 205,940,000 18,535,000 3,948,000 6,276,000
San Mateo County, CA 52,395,000 5,030,000 929,000 753,000
Seattle-Tacoma-Bellevue, WA 157,828,000 14,362,000 662,000 11,011,000
Suburban MD 72,888,000 13,484,000 0 634,000
Suburban VA 162,377,000 30,527,000 203,000 1,931,000
Syracuse, NY 12,890,000 2,079,000 42,000 0
Tampa-St. Petersburg-Clearwater, FL 60,176,000 9,970,000 26,000 599,000
Tucson, AZ 6,463,000 1,145,000 49,000 0
Tulsa, OK 20,810,000 2,830,000 78,000 310,000
Ventura County, CA 5,598,000 1,327,000 103,000 121,000
Washington, DC 122,850,000 13,514,000 105,000 2,227,000
Westchester County, NY 36,217,000 8,004,000 382,000 0
West Palm Beach-Boca Raton, FL 24,507,000 1,633,000 15,000 32,000
Wichita, KS 14,214,000 2,209,000 256,000 35,000
Methodology and data sources explained on page 14
Under construction and inventory change fi gures are derived from DTZ’s proprietary
sample and taken directly from CoStar’s database for certain markets.
14 | DTZ
MethodologyDTZ’s quarterly estimates are derived from a variety of data sources, including its own
proprietary sample of market activity, historical inventory data from Reis LLC, Bureau of
Labor Statistics Employment data, CoStar and other third party data sources. The market
statistics are calculated from a base building inventory made up of offi ce properties deemed
to be competitive in the local offi ce markets. Generally, owner-occupied and federally-owned
buildings are not included. Single-tenant buildings and privately-owned buildings in which the
federal government leases space are included. Older buildings unfi t for occupancy or ones that
require substantial renovation before tenancy are generally not included in the competitive
inventory. The inventory is subject to revisions due to resampling. Vacant space is defi ned
as space that is available immediately or within three months (90 days) after the end of the
quarter. Sublet space still occupied by the tenant is not counted as available space.
The fi gures provided for the current quarter are preliminary, and all information contained in the
report is subject to correction of errors and revisions based on additional data received.
Explanation of TermsTotal Inventory: The total amount of offi ce space (in buildings greater than 10,000 square feet)
that can be rented by a third party.
Total Space Available: The sum of new, relet, and sublet space that is unoccupied and being
actively marketed.
Vacancy Rate: The amount of unoccupied space (new, relet, and sublet) expressed as a
percentage of total inventory.
Absorption: The net change in occupied space between two points in time. (Total occupied
space in the present quarter minus total occupied space from the previous quarter, quoted on a
net, not gross, basis.)
Asking Rents: Gross average asking rents.
Disclaimer
This report and other research materials may be
found on our website at www.dtz.com. This is a
research document of DTZ in Washington, DC.
Questions related to information herein should
be directed to the Research Department at 202-
463-2100. Information contained herein has been
obtained from sources deemed reliable and no
representation is made as to the accuracy thereof.
Regional Map
West
Midwest
South
Northeast
About DTZ
DTZ is a global leader in commercial real
estate services providing occupiers, tenants
and investors around the world with a full
spectrum of property solutions. The company’s
core capabilities include agency leasing,
tenant representation, corporate and global
occupier services, property management,
facilities management, facility services, capital
markets, investment and asset management,
valuation, research, consulting, and project
and development management. DTZ provides
property management for 1.9 billion square
feet, or 171 million square meters, and facilities
management for 1.3 billion square feet, or 124
million square meters. The company completed
$63 billion in transaction volume globally in 2014
on behalf of institutional, corporate, government
and private clients. Headquartered in Chicago,
DTZ has more than 28,000 employees who
operate across more than 260 offi ces in 50
countries and represent the company’s culture
of excellence, client advocacy, integrity and
collaboration.
DTZ announced an agreement to merge with
Cushman & Wakefi eld in a May 11 press release.
The new company, which will operate under the
Cushman & Wakefi eld brand, will have revenues
over $5.5 billion, over 43,000 employees and
will manage more than 4 billion square feet
globally on behalf of institutional, corporate
and private clients. The agreement is subject to
customary closing conditions and is expected
to close before the end of 2015. For further
information, visit: www.dtz.com or follow us on
Twitter @DTZ.
www.dtz.com