The hits keep on coming for the struggling office sector, beset by increasingly disrupted migration patterns and corporate location strategies in the wake of the COVID-19 pandemic. The latest piece of dismal news? Vacancies will likely show their largest increase this year, with marginal increases expected through 2023 as employers shore up return-to-work strategies, and the national vacancy rate matches the last historic high of 19.7% by 2022, according to Moody’s Analytics REIS.

The national office vacancy rate hit 17.7% in the fourth quarter of 2020, a 40 basis point increase over the third quarter and a 90 basis point increase year-over-year. The report notes that the “magnitude of deterioration in occupancy is relatively benign compared to the Great Recession,” when vacancies rose almost 200 basis points in 2008, but predicts that the true impact of the economic downturn is still yet to be seen.

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?


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.


GlobeSt Net Lease Spring 2024Event

This conference brings together the industry's most influential & knowledgeable real estate executives from the net lease sector.

Get More Information


Join GlobeSt

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

  • Free unlimited access to'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 and

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.