U.S. OFFICE MARKET CONDITIONS
Vacancy rates dropped slightly for office markets year-over-year in almost every region, with minor changes registered in the Midwest from 8.6 percent to 8.5 percent, and in the Northeast from 8.7 percent to 8.6 percent in the first quarter of 2018. Vacancy rates remained unchanged on a national level, compared to the first quarter in 2017, but recorded a 50-basis-point decline compared to the same period in 2016. Year-over-year, vacancy rates in the West remained unaltered. Vacancy rates for office markets are projected to increase in every region, growing by 30 basis points on a National level. Rates in the Midwest and the South are expected to increase by 20 basis points, while rates in the West are estimated to increase by 30 basis points, and by 40 basis points in the Northeast.