...The sector outlook for U.S. office REITs for 2015 is positive. Credit metrics for Fitch's rated office REIT portfolio are generally stable and appropriate for existing ratings. Like most REITs, office companies have solid liquidity positions, underpinned by access to attractively priced capital. The pace of recovery in U.S. office fundamentals is accelerating, largely due to the improved employment during most of 2014 and a limited amount of new office supply. However, property market fundamentals remain uneven, with clear demarcation between the solid performance of most central business district (CBD) markets and weak fundamentals for many suburban office markets. However, even within these two categories, there is a bifurcation in market-level performance, generally defined by geography and the composition of office using employment by industry. The better performing CBD markets include those with heavy exposures to tech and energy-related employment. Weaker CBD markets tend to rely...
