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U.S. office market fundamentals continued to tighten during Q4 2013, making the landscape more competitive for occupiers.

• U.S. office market fundamentals continued to tighten during Q4 2013, making the landscape more competitive for occupiers.
• The national office vacancy rate ended 2013 at 14.9%, down 20 basis points (bps) quarter-over-quarter and 50 bps year-over-year.
• Overall office market conditions are expected to continue tightening during 2014, with the U.S. vacancy rate forecasted to decrease to 14.5% by year-end 2014, according to CBRE Econometric Advisors (CBRE EA).
• Office rent growth accelerated during Q4 2013, with CBRE EA's Rent Index rising 1.4% during the quarter.  For the year, the Index was up 2.5%.
• A faster average annual office rent growth rate of 3.3% is expected over the next five years, according to CBRE EA, as vacancy rates continue to decline.
• As fast-growing tech and energy markets such as San Francisco Downtown, San Francisco Suburban and Houston reach maturation over the coming years, it will present opportunities for occupiers to negotiate more favorable lease terms with owners.
• There was a notable resurgence of activity from financial services occupiers during Q4 2013, particularly in Manhattan and Dallas/Ft. Worth.  In the Bay Area, technology occupiers shifted toward San Francisco instead of Silicon Valley.  Occupiers in creative industries were also active, particularly in Los Angeles.
• Heading into 2014, occupiers can expect an ample supply of existing large blocks of office space in most major markets.