Office Reports

The U.S. office vacancy rate reached 17.5% at the end of August, rising 260 basis points over year-ago figures.

Loans on 18.1% of Class B assets — encompassing 594.2 million square feet — will reach maturity by the end of 2026.

As office construction continues to cool, a quarter of under-construction office space is now concentrated in just 6 life-science-heavy markets.

From January to June of this year, office properties have been trading at an average price of $199 per square foot.

Remote work is yet another challenge disproportionately impacting tech markets, pushing up office vacancy rates.

In a challenging economic environment, tech companies continue to trim their office footprint, pushing up vacancy rates.

With so many headwinds impacting the sector, office landlords are faced with tough decisions as the future of offices remains unclear.

With weak demand and high interest rates, refinancing offices will be challenging unless they include solid leases with high-quality tenants.

Amid economic uncertainties and vacancy woes, the sector is expected to record one of the smallest sales volumes since the Great Recession.

Higher interest rates will likely hamper new supply as well as sales activity in 2023, while tenants’ flight-to-quality expected to persist.