Office space constrained across global markets as co-working and knowledge economy continue to expand28 Aug 2019
Despite increasing headwinds and political uncertainty, the relative health of the economy and labour markets continues to provide a positive foundation for office space demand across major global markets. We continue to see significant development in urban areas of major metropolitan markets across all countries in which we operate.
The impact can be seen on city skylines, which are changing rapidly, and in the delivery of new forms of workspace driven by organizations that are constantly adapting to their changing workforces and new technologies.
The large development pipeline is being more than offset by robust demand. This situation is particularly true for good-quality class A space with pre-leasing levels at historic highs.
The most significant story now is the proliferation of co-working space. The ever-increasing demand for flexibility from occupiers, as well as the evolution of technology, has resulted in a co-working boom across the globe. This growth has led to new markets being opened for providers of shared workspace.
Office market fundamentals continue to be sound across both the U.S. and Canada, with robust demand continuing to drive down vacancy levels in most major markets. In the U.K., the looming Brexit deadline has done little to stymie demand, while in Germany, leasing activity continues to be above average.
Read more in my interview with Forbes.com this month as well as the full story in Avison Young’s Mid-Year 2019 Global Office Market Report, which covers 79 office markets in eight countries across the globe: Canada, the United States, Mexico, the United Kingdom, Germany, Poland, Romania and South Korea.
(Mark E. Rose is Chair and CEO of Avison Young.)
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