The majority of appraisers servicing commercial assets nationally say occupier demand for office space could take up to five years to push property values to pre-pandemic levels, according to a recent survey of the industry by Valcre.
In the study, Valcre questioned more than 75 appraisers, all of whom service commercial assets on a national scale, about the health and future recovery of the office market following 18 months of stay-at-home orders and increasingly liberal remote work policies. More than half of respondents say the state of the US office market is currently unclear, with another 30% deeming the market healthy.
Nearly three-quarters of respondents say they believe asking rents are too high when compared to the current market value of office properties. Research from Newmark currently lists national pricing at $30.29 per square foot.
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