Office
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.
2024 to Witness Record Life Science Deliveries as Traditional Office Construction DeclinesÂ
Life science facilities are an attractive office subtype, representing 27% of total office projects slated for completion by the end of 2024.
Weak Demand, Still-Rising Vacancies Predict Downward Trend in Office Valuations  Â
The 2024 office market outlook suggests an increase in these discounted sales, driven by high rates and reduced demand.
U.S. Office Market Closes 2023 With $34 Billion in Sales, 60% Below the Volume Recorded in 2022
The U.S. office market has logged $33.8 billion in office sales for 2023, at a yearly average of $196 per square foot.
Office Utilization Plateaus at 50% to 60% of Pre-Pandemic Levels
Demand for office space is down, expenses are up and values have dropped, while maturing loans continue to pressure the sector.
Office Projects Face Delays, Cancelations as Uncertainties Linger
About 31 million square feet of new office space began construction in 2023, nearly half of the starts from the last two years.
Office Mortgage Maturities Signal Coming Distress
The volume of loan maturities is concerning as weaker demand, rising costs and lower property values squeeze office owners while banks and investors reduce exposure to offices.
