The depressed state of the U.S. office market is well documented. So it may not be surprising that tenants in the market are asking for more detail about the loan health of prospective office buildings, as reported in Transwestern's office market report for 2Q 2023. "It's a trend that "will challenge select landlords," Transwestern commented.

In Q2, net absorption of office space shrank by 15.9 MSF, including both direct and sublet space. Only 19 of the 51 markets Transwestern tracks showed positive absorption, mostly in smaller metros. However, had it not been for the fully pre-leased delivery of Amazon's second headquarters, one of them — Northern Virginia – would have been in negative territory.

Markets seeing the least rise in availability since the pandemic began include Inland Empire, New Orleans, Las Vegas, Westchester, Miami, and Oklahoma City.