Latest Office Stats Offer Little Reason for Hope

Even the Class A advantage appears to be eroding on the margins.

By Philippa Maister | September 06, 2023 at 08:10 AM

Yet another gloomy assessment of the state of the U.S. office property market has emerged, this time from Newmark. Even some once-hopeful signs of life in certain sectors now seem less hopeful, while overall leasing activity continues to slow and access to capital remains hard to come by.

The ray of light in the gloom has been the “office-using sector”, especially technology, advertising, media and information companies, which Newmark says drove much of the leasing activity over the past two years. National office-using employment is currently 6.3% above December 2019 figures, and continues to expand. “However, in the year-to-date, technology companies have accounted for just 8.7% of leasing activity, down from 37% in 2022,” Newmark reported.

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