CommercialEdge's report on how the national office market fared in March 2024 contains little good news for landlords, but it does describe shifting trends that are influencing some locational decisions as well as the risks posed by AI.
The national office vacancy rate rose to 18.2% — up 120 basis points over the prior year. The average national listing rate dropped 1.3% to $37.74, construction plummeted, and properties changed hands at a national average of just $171 per SF.
The report notes that both coworking spaces and flexspace are becoming more suburban. The amount of flexspace – industrial space often used for both warehousing and office – grew in the year from113.5 million SF to 124.8 SF, almost all in suburban submarkets.
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