Demand for high-quality office space is growing, office vacancy is falling and leasing activity is growing. Even available space to sublease is declining, according to a new report from CBRE for 4Q 2024.
“Demand for high-quality space in prime locations remained strong, while commodity buildings continue to draw limited tenant interest,” the report said. “The prime office vacancy rate fell by 10 bps quarter-over-quarter to 15.3%, while the non-prime vacancy rate stayed at 19.2%.... This reflects a strong preference for quality offices and building in well-connected, amenity-rich locations.”
However, some markets like Nashville, Raleigh and Seattle that had undergone recent delivery of speculative prime buildings did see a short-term increase in vacancy rates.
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