Major Office Markets Outlook (Q2 2020)

With the largest fall in occupier demand expected in New York City and San Francisco, and completions staying relatively strong in Los Angeles and SF, we expect these cities to see the largest rental declines and yield rises this year. On the other hand, demand should hold up better in Boston, Chicago and Washington D.C., limiting capital value falls in those cities to end-2021 to less than 2. At 4.5% p.a. and 3.5% p.a. respectively, we expect D.C. and Chicago to produce the best total returns in the next two years.