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.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
