While trophy office assets continue to outperform, Class B office space is showing resilience when compared with commodity Class A properties in some cases.
Before the pandemic, Class A and Class B availability rates were nearly identical. However, a gap between the two has widened considerably as Class A office has underperformed, according to Newmark’s Q3 national office market overview.
New office construction initially had a sharp increase in availability as new supply met reduced demand. Now that new stock has leased up, occupancy rates are outperforming Class A properties and are approaching the Class B rate, said the report.
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