Office Reports
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.
National Office Sales Volume at $25 Billion Through the First Three Quarters of 2023
The average sale price per square foot fell 21% Y-o-Y, with properties trading at an average of $198 per square foot through Q3 2023.Â
Office Vacancy Rates Continue to Rise Despite Return-to-Office MandatesÂ
The U.S. office vacancy rate reached 17.5% at the end of August, rising 260 basis points over year-ago figures.
Loans on Nearly 1 in 5 Class B Offices to Mature Soon. Where Are the Hotspots? Â
Loans on 18.1% of Class B assets — encompassing 594.2 million square feet — will reach maturity by the end of 2026.
Life Science Sector Cools but Still Represents Nearly One Third of Under-Construction Office Space
As office construction continues to cool, a quarter of under-construction office space is now concentrated in just 6 life-science-heavy markets.
U.S. Office Sales Total $14.8B Halfway Through 2023Â
From January to June of this year, office properties have been trading at an average price of $199 per square foot.
Exposure to Remote Work Puts Uneven Strain on Tech Markets
Remote work is yet another challenge disproportionately impacting tech markets, pushing up office vacancy rates.
Tech Sector Woes Continue to Put Pressure on Major Office MarketsÂ
In a challenging economic environment, tech companies continue to trim their office footprint, pushing up vacancy rates.
