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The Office Market Is Flat Lining

For the third straight quarter, the office market has remained flat and major cities reported negative net absorption.

Jeff Rinkov Jeff Rinkov is the CEO of Lee & Associates.

The national office market is flat. According to the 2Q17 report from Lee & Associates, the national office market has remained flat for the last three quarters. The vacancy rate is only 10 basis points lower that is was the same time last year, at 9.6%, and the vacancy rate for class-A space has increased 30 basis points. Major markets are driving the rise in vacancy. New York, Los Angeles and San Francisco has posted negative absorptions rates through the midyear. Putting further pressure on the market, the sublease inventory is also increasing nationally. To find out more about the office market, why growth has stagnated and where things are heading, we sat down with Lee & Associates CEO Jeff Rinkov for an exclusive interview.

GlobeSt.com: Why do you think that office has entered this flat period for the last several quarters?

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Kelsi Maree Borland

Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on GlobeSt.com and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.

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