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We are pleased to release the latest State of the U.S. Office Market. This quarterly presentation provides key metrics on office leasing and the current state of the capital markets in the office sector.
A few noteworthy facts from our research:
- Post-pandemic, the U.S. office market recovery remains sluggish amidst higher economic uncertainty and slowing office-using employment growth.
- Office availability now stands at 24.6%, up 20 basis points from last quarter with available sublease space of 176.4 million square feet (msf) a new all-time high.
- Overall leasing activity has slowed in the first three quarters of 2023 to 133.0 msf which is a 15% decrease from 156.7 msf reported in the same period of 2022.
- With an estimated $32.5 billion in office loans currently distressed, an estimated $50.3 billion in office loans identified as potentially addressed, and another $117.0 billion in office loans maturing in 2024, expect continued “flight-to-capital” by occupiers as owners in a stronger financial position are better able to win deals.