On Wednesday, VTS published a report on the state of the national office market. Across the country demand in March was just 29% lower than average pre-pandemic levels for that month, a rebound from a 60% year over year decline in January.
The report aggregates data nationally and breaks out seven cities: New York, Los Angeles, San Francisco, Seattle, Washington D.C., Chicago and Boston. Seattle is leading the pack, with demand for offices rising 1% compared to historical averages for the month of March, driven primarily by technology companies. In New York City, demand is down 24%, while San Francisco is down 26%, and Chicago 31%.
That is particularly true in New York, where there are 66 million square feet of unused office space in, according to Cushman & Wakefield. The borough’s vacancy rate for offices in the first quarter stood at 16.3%, almost double what it was six years ago. Subleasing activity is also up, as long-term leaseholders seek to offload unneeded overhead. Those figures illustrate that increased demand still has plenty of inventory to eat through.
Finance is leading New York’s office recovery, accounting for a third of new demand, followed by technology firms, which account for 13%. The city’s rebound is not impacting all buildings equally; upscale properties with prime locations are faring better than mid-block, Class B offices, whose tenants have struggled to make rent over the past year. “It’s really a tale of two cities,” Anton says.
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The Office Is Dead. Long Live The Office: Demand Is Back, But It’s Still A Tenant’s Market“Any which way that we look at the numbers, there is tremendous momentum coming back into the office market,” says Ryan Masiello, cofounder and chief strategy officer of VTS, a real estate software firm. thank you very much for your work
Source: Forbes - 🏆 394. / 53 Read more »
The Office Is Dead. Long Live The Office: Demand Is Back, But It’s Still A Tenant’s Market“Any which way that we look at the numbers, there is tremendous momentum coming back into the office market,” says Ryan Masiello, cofounder and chief strategy officer of VTS, a real estate software firm. I hate working from home. Office life sucks but I miss civilization a lot more than I hate having to regularly show up at a particular place. In our opinion and observation, this is a good thing, and if done efficiently, can help improve the climate and city atmosphere So wait... These numbers are based off of people 'touring' office spaces, not actually renting? (That's what the article sounds like) So people are interested in looking at them and that's it?
Source: Forbes - 🏆 394. / 53 Read more »
The Office Is Dead. Long Live The Office: Demand Is Back, But It’s Still A Tenant’s Market“Any which way that we look at the numbers, there is tremendous momentum coming back into the office market,” says Ryan Masiello, cofounder and chief strategy officer of VTS, a real estate software firm.
Source: Forbes - 🏆 394. / 53 Read more »
The Office Is Dead. Long Live The Office: Demand Is Back, But It’s Still A Tenant’s Market“Any which way that we look at the numbers, there is tremendous momentum coming back into the office market,” says Ryan Masiello, cofounder and chief strategy officer of VTS, a real estate software firm.
Source: Forbes - 🏆 394. / 53 Read more »