Flight to Quality Ongoing, Even With Improving Economy

HOUSTON-During the Great Recession and its immediate financial aftermath, the concept often mentioned when it came to office space was “flight to quality.” This meant that tenants, taking advantage of lower lease rates, signed agreements for – and moved into – class A spaces.

According to Alexander (Sandy) Paul, executive vice president with Delta Associates, Transwestern’s research arm, class A space secured 91% of net new demand by 2008 (an increase from 68% in 2007). In the recent “Insights + Trends + Opportunities” published by Transwestern, Paul points out that, while US office absorption was negative in 2009, the top-tier space wasn’t as hard-hit as the class B and class C spaces were.