Office occupancy ended 2023 at 80%. Companies have pared back their office space to accommodate Covid work-from-home policies and are having trouble getting employees to report to company offices.
Vacancies are running from 20-25% and are expected to remain high.
Banks may have loans default
before the supply and demand of commercial real estate space are equalized.
https://www.cbsnews.com/news/empty-office-buildings-doom-loop-cities-60-minutes/
in 1980, office vacancies were 7%. Over-building rose and
peaked at 19% in 1987. It fell to 8% in 2001 and rose to 17% in 2004. It
dropped to 13% in 2008 and rose to 18% in 2011. It stood at 17% in 2019.
https://www.abi.org/newsroom/chart-of-the-day/office-vacancy-rate-since-1980-4
In 1980, office rent costs were $100/sq ft. By 2019, office rent costs rose to $127/sq ft.
Comments
Most of the commercial property problem resides in the big cities.
Norb Leahy, Dunwoody GA Tea Party Leader
No comments:
Post a Comment