X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

Nationally, the office market appears to be stagnant; however unique geographic trends are emerging. Data from JLL shows a concerning national trends in the office market, from a decline in occupancy to an increase in sublease space. However, recent data from REIS Moody’s Analytics has found that individual markets reveal emerging trends in market activity.

According to JLL, the dramatic decline in office activity during the second quarter sparked third quarter volatility. Many firms are choosing to stay in place and wait out the uncertainty, and firms with lease renewals are using three-to-five year lease extension options. As a result, 55% of national leasing came from renewals in the third quarter. An increase in givebacks have also led to a 28.9 million-square-foot decrease in occupancy. This is the largest single-drop in a quarter on record, and it brought the vacancy rate to 16%. Unsurprisingly, this has also led to an  excess of sublease space. The market is now larger than it was during the dot-com era, and JLL expects the market to reach 150 million square feet.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

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.

More from this author

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.