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Despite a softer quarter for leasing and absorption and risks abroad, the U.S. appears on track to continue its slow and steady economic recovery and landlord confidence across the office sector has improved as a result. Availability and tenant leverage in the highest quality space is dwindling, especially in hot energy and technology markets. Large markets including DC and New York have slowed, and many suburban and Class B segments are lagging and remain more tenant favorable. The majority of US markets we track will gradually trend toward more balanced and landlord favorable conditions (up the rising quadrant on our clock) over the next two years.
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