Office
Lower Sale Prices and Reduced Development Signal Continued Stress in the Office Sector Â
The strain in the office sector started in the pandemic persists with less development activity, more discounted sales and surging vacancies.
Office Continues to Struggle in Adapting to New Workplace DynamicsÂ
As shifting work trends drive demand for flexible office spaces, the coworking sector emerges as a bright spot in the office landscape.
Despite Return-to-Office Mandates, Downsizing and Vacancy Upticks PersistÂ
Despite back-to-office policies from high-profile companies, office utilization remained unchanged and vacancy rates continued to rise.
Life Science Grapples with Oversupply and Weakened DemandÂ
With 26.4 million square feet underway and reduced demand, the life science sector is experiencing a supply glut, leading to increased vacancies in major hubs.
Interest in Office Conversions Grows Amid Rising Vacancies and Discounted SalesÂ
Over 1.2 billion sq. ft. of U.S. office space (14.8% of stock) are solid candidates for residential conversions, according to our tool.
Office Market Distress Persists Amid Rising Defaults and Maturing LoansÂ
Distress in the office market persists with over $260 billion in office loans maturing and a growing delinquency rate.
Sales Activity Remains Slow as Discounted Office Sales Jump to 30%Â
As of May this year, there have been 600 office sales, an increasing number of which are being sold at discounts.
The Distressed Office Market Continues to Unfold Amid Stagnating Demand and Falling Property Values
In March, several markets had average DSCRs below 1.0, including Brooklyn (0.81), Chicago (0.90) and Cleveland (0.96), CommercialEdge shows.
Q1 2024 Office Sales Dip to $5.4 Billion, 17% Below Last Year’s Figure
Office sales continued to wane in Q1 2024 as companies embraced remote and hybrid work and re-examined their office footprints.
U.S. Office Market Continues to Navigate Demand Shifts
As the office market navigates trends shaping the sector in recent years, we anticipate an uptick in distress activity and discounted sales.
