Kelly Carlon’s Post

After five quarters of decline, office demand is stabilizing as tenants are holding onto more space, contributing to positive net absorption in over half of U.S. markets.

When the pandemic happened years ago and more people started working remotely, many companies decided they didn't need as much of their office space and put it on the market for sublease. And boy were there some incredible deals to be had over the last few years! But, it seems the tide is now turning. Nearly 80% of U.S. office markets have witnessed a decline in available sublease space over the past 12 months. Notably, Chicago (-19%), Dallas (-15%), and San Francisco (-14%). Much of the high-quality sublease options have already been absorbed with new tenants and as the expiration dates for the underlying leases came due. The overall availability of sublease office space is expected to continue declining through 2025. Check out how things look for your market! #databyAVANT #office #cre Avison Young

Office space is still slumping, but it isn’t the same everywhere. There’s geographic variation in the office sector, with some Southern metros like Miami and Dallas showing resilience, while traditionally strong technology hubs such as San Francisco and Seattle are facing the brunt of the blow because of shifting work patterns. In fact, the sector faces another two years of capital value falls, according to a report from Capital Economics’ chief commercial real estate economist this summer. Read more here: bit.ly/3SRSw3g

Navigating the Dichotomy: Modern Trends and Challenges in the U.S. Office Space Market Full Post: https://buff.ly/3VAIF2p #RealEstate #HousingMarket

The once flooded market of sublease spaces is beginning to right-size. Underlying leases are coming due, and tenants have a better idea of what the office means to their business, their culture, and their people. Subleasing will always be a tool for managing risk and increasing agility, but this may be a turning point as companies look with clear eyes to make longer term decisions their workspace. At Avison Young | US we help our clients build a defensible strategy for their workplace including the important step of defining the new role of the office so they no longer need to lean on the dwindling availability of sublease spaces. #AYDifference #workplacestrategy #workplacesolutions

The office sector has seen dramatic shifts since COVID-19, with 274 million square feet of office space vacated in the U.S.  In "I’m Flexible #3," Scott Homa and Ben Wright discuss how these disruptions are now beginning to stabilize, with leasing activity reaching 90% of pre-pandemic levels. What does this mean for the future of the office market? Find out in this insightful discussion. Looking to generate better returns from your assets? See how The Instant Group helps landlords succeed: https://lnkd.in/ezdxwfNs  

🔍 Managed vs. Leased Offices: What's Right for You? Finding the perfect office space is a critical decision for any business. Say goodbye to long commitments and complex setups—choose an office that adapts to your pace. 💼 Here's a quick comparison to help you decide: #OfficeSpaces #FlexWork #ManagedOffices #BusinessGrowth

Positive Shift in Office Markets: Nearly 80% of U.S. office markets have seen a decline in available sublease space over the past year. This overall 11% drop highlights a recovery from the pandemic, as high-quality subleases get absorbed and lease expirations approach. #cre #office

The great office divide: premium space thrives while B-grade dies Vanessa Rader Head of Research Ray White Group Many prime office buildings are undergoing a dramatic transformation as landlords race to combat the persistent work-from-home trend. With office investment volumes down as much as 70 per cent year-on-year and yields pushing beyond 6.50 per cent in some major submarkets, owners of prime assets are betting big on amenity offerings to drive occupancy and defend asset values. Read more: https://lnkd.in/gSb7bjWt #raywhitecommercialsydneycityfringe #raywhitecommercial #propertyupdate

It’s no secret that demand for office space is well below pre-pandemic levels. But just how much has it fallen? Check out the link in the first comment to find out how much office space demand has dropped and what this means for the future. #FirstAmEcon #CRE #RealEstate