Data for the fourth quarter showed a widespread deterioration in occupier demand in all three sectors. This was worst in some of the big six and West coast metros, with markets like Phoenix, Portland and San Jose joining San Francisco and Chicago in reporting poor absorption numbers. On the other hand, Atlanta, Austin and Miami remain amongst the better performers in terms of occupier demand. Though, with yield rises now gathering pace, those rental differentials are likely to be outweighed by a severely negative yield impact, which will drive capital values lower across the board over the next few quarters, adding to the losses seen in Q4 2022.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services