We are pleased to release the latest State of the U.S. Office Market. This quarterly presentation provides key metrics on office leasing and the current state of the capital markets within the sector.
A few noteworthy facts from our research:
- In Q1 2024, U.S. office market leasing activity was 45.7 million square feet (msf), up 7.5% over Q1 2023 but still below pre-pandemic levels.
- Office availability now stands at 25.1%, up 30 basis points from last quarter with available sublease space decreasing for the second consecutive quarter to 168.7 msf.
- Occupiers in a strong financial position remain in the driver's seat as landlords aggressively look to preserve occupancy and lock in cash flow.
With an estimated $38.2 billion in office loans now distressed and an estimated $50.3 billion in office loans identified as potentially distressed, it remains critical in understanding the debt situation of ownership as occupier flight-to-capital continues to be prevalent.