Office buildings were hit hard during the pandemic, leading to higher vacancy rates and reduced occupancy demand– trends that continue today. The 10% hit the very hardest between the first quarter of 2020 when the pandemic began and the fourth quarter in 2022 when it had greatly waned have been labeled the "hardest-hit buildings" or HHBs, by CBRE in a new report. On average these buildings had an average vacancy rate of 18% at the end of 2022. Key is that they shared several common denominators.
Age
The largest number or 70% was built between 1980 and 2009, with differences in the age a factor in less versus more mature markets. For example, in less mature markets such as Austin and Phoenix the HHBs were built after 2009 while in more mature markets like Chicago, the buildings are older.
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