The majority of appraisers servicing commercial assets nationally say occupier demand for office space could take up to five years to push property values to pre-pandemic levels, according to a recent survey of the industry by Valcre.

In the study, Valcre questioned more than 75 appraisers, all of whom service commercial assets on a national scale, about the health and future recovery of the office market following 18 months of stay-at-home orders and increasingly liberal remote work policies. More than half of respondents say the state of the US office market is currently unclear, with another 30% deeming the market healthy.

Nearly three-quarters of respondents say they believe asking rents are too high when compared to the current market value of office properties.  Research from Newmark currently lists national pricing at $30.29 per square foot.

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

  • 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
NOT FOR REPRINT

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