Office leases signed in the earliest part of the pandemic, those roughly with three-year terms, will be coming up this year, which could delay space attrition, according to a new report from Marcus & Millichap.
Meanwhile, given that many office spaces could remain empty for several years, the thought of converting those assets to other product "remains a niche option," the report said. Conversions of certain older assets into other uses will occur, it added.
Recent office leases have skewed toward smaller floorplans and shorter terms, Marcus & Millichap reported. And, despite flight-to-quality, Class A properties are still challenged.
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