With employees still largely refusing to return to work full time, the office asset class continues to struggle. To be sure, there are months where attendance ratchets up a notch or two, but inevitably the slide back to remote work materializes, if not because of COVID-19 then because of high gas and transportation costs. To make matters worse for office landlords, the US economy seems to be heading into a downturn, if not a recession, which does not serve the office asset class well at all. To gauge exactly how the office asset class is performing, we turn to JLL's newly-released quarterly report. Its overarching theme is that the flight to quality continues amid a widening divergence in absorption and rent growth. Other details from the report intrigue, such as JLL's finding that the average lease term is beginning to stabilize. To read about this and other trends, check out the slideshow below.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
