Following a promising 2011, the U.S. office market took a breather during the first three months of 2012, registering its lowest level of tenant expansion since the first quarter of 2010.

Despite the slowdown in overall demand and leasing volume, the market remained poised to continue on its road to recovery largely due to the dual support of the burgeoning technology and energy sectors.

Fortunately for landlords, these two growth industries have provided enough leasing and demand momentum and more importantly, confidence, that most market segments have now shifted to the bottom of the cycle, with the vast majority of geographies now posting rent increases, albeit minor.

Absorption was positive for the eighth consecutive quarter, but growth levels softened in the first quarter. After more than 52 million square feet of absorbed over the prior six
quarters, the pace of absorption nearly paused over the first three month of 2012.

From a regional perspective, the recovery remained highly segmented, and so do the forecasts for future growth expectations: