To Our Valued Clients:

The coming year holds the prospect of being particularly dynamic for offi ce investors. The combination of the new tax law, an increasingly competitive employment market and evolving millennial behavior patterns are converging to reshape companies’ offi ce needs, and the potential implications for investors are significant.

With the U.S. economy in its eighth year of growth, the stimulus created by the new tax law could accelerate economic growth, driving demand for additional staffi ng and sparking increased competition for talented employees. The windfall tax savings will reinforce already elevated confidence levels at companies large and small, boosting infrastructure spending and job creation in the midst of the tightest labor market in 17 years. Within that context, offi ce space will further distinguish itself as a competitive recruiting element, inspiring companies to rethink their space allocations and the amenities available near their offi ces. The coming year may be the turning point: A considerable number of companies will relocate offi ces to the suburbs to more effectively tap the workforce that resides there and to expand space allocations at a more affordable price point.