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IRVINE, CA-The US office market recovery has remained slow, tepid and lethargic for several years now, and unfortunately the same batch of adjectives is still apt. However, the general malaise in US office fundamentals continues to hide the significant divergences taking place in metros across the country.

Metros with strong local economies driving demand have seen the largest improvement, such as Fort Worth, Portland, Nashville and San Antonio.  Metros with weak economies are seeing availability rise as they fail to generate absorption, including Memphis and Cleveland.  Northern Virginia and Tampa are seeing rising vacancies due to large supply additions that have occurred in the last two quarters. Despite only modest improvement in national office fundamentals, the majority of markets are now seeing increases in office supply, limiting potential improvements in vacancies.  42 of the 51 major US office markets saw some supply addition over the last two quarters, a significant uptick.  The average metro saw 0.5% added to office stock, however nine metros saw more than 1% added to stock and Suburban Maryland, Salt Lake City and San Jose saw roughly 2% added to their office supply.

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