Industry News

Offshoring may cripple U.S. office markets

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The steady movement of knowledge-based jobs overseas has dire implications for America's office markets, virtually ensuring high vacancy rates and minimal rent increases for several years and affecting several types of office space, according to "The New Exports: Office Jobs," an analysis published jointly by the Urban Land Institute and the Columbia Business School's Paul Milstein Center for Real Estate. "Offshoring of knowledge-based jobs poses the greatest threat to America's office markets since the massive overbuilding of the 1980s," said report author M. Leanne Lachman, president of Lachman Associates LLC, ULI Foundation governor and executive-in-residence at the Columbia Business School. The report cites research predicting a cumulative loss of 3.3 million knowledge-based jobs in the United States by 2015, and notes that escalating cost cutting by firms could shorten that time span to 2010. "The current and potential loss of hundreds of thousands of office-oriented jobs to ...