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 24.8%, up another 20 basis points from last quarter with available sublease space of 173.7 million square feet (msf), the first quarterly decrease in two years.
- Overall leasing activity slowed in 2023 to 181.9 msf which is an 11% decrease from 203.4 msf reported in 2022.
- With an estimated $25.5 billion in office loans now distressed and an estimated $54.7 billion in office loans identified as potentially distressed, expect occupiers with strong credit profiles to be in the driver’s seat as landlords remain aggressive at maintaining occupancy.