The office market is nuanced, presenting a tale of two cities. In commodity office space, we observe record high vacancy rates and declining rental rates. However, Trophy Class A space is thriving with low vacancy rates and increasing rental rates. For instance, in Morristown, New Jersey, the trophy market boasts an 8.6% vacancy rate with a 51.6% increase in rental rates since the pandemic's onset. Despite media attention on Kastle Systems’ Back to Work Barometer data, it does not fully capture the market's complexity. From June 1 to June 30, the Kastle's barometer data reported average occupancy at 52.1%. However, when Kastle excluded commodity office spaces, the average occupancy rate surged to 74.2%. Understanding the nuances of the office market is crucial for informed decision-making. Researching thoroughly enables a comprehensive grasp of the dynamics at play. #office #backtotheoffice #hybrid #remote #workplacestrategy #cbre
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https://lnkd.in/eTv4y37c office markets are seeing a surge in rent growth and a decline in vacancy rates, according to a recent analysis by @Moodys. This trend highlights the growing popularity of suburban office spaces, as businesses and employees look for more space and flexibility in the post-pandemic world. With a strong demand for suburban offices, now is the time for companies to consider expanding outside of the city. Don't miss out on this opportunity to secure a prime office location while it's still available. #SuburbanOfficeMarkets #RentGrowth #VacancyRates #MoodysAnalysis #OfficeSpaces #PostPandemic #Flexibility #BusinessExpansion 🌇🏙️📊
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London Flex Office Rates Rise 2% to £629/desk - Here's Why: The increase isn't demand-driven. Traditional landlords are transforming prime office space into flexible solutions, introducing higher-grade inventory with premium amenities. Key Evidence: - 40% of new inventory from converted traditional space - Enterprise rates (50+ desks) up 12% to £819 - Small office rates stable at £560 - Central London inventory +29% #CommercialRealEstate #FlexibleWorkspace #LondonOffices
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Smaller floorplates in the Phoenix office market show lower vacancy rates than pre-pandemic levels Read more: https://lnkd.in/dhQyAdEX Despite the pandemic driving overall office vacancy rates to historic highs due to the rise of remote work, a surprising trend has emerged in the #Phoenix market. Traditional #office spaces with smaller floorplates, specifically under 15,000 sf, are experiencing a revival with higher occupancy and lower vacancy rates than before the pandemic. #AVANTbyAY #AYdifference
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Flight to 🏆 High vacancy rates in the U.S. office market are often misunderstood. The aftermath of the COVID pandemic and the shift to remote work have led to a decrease in demand. However, the real challenge lies in the oversupply of outdated and functionally obsolete office buildings, coupled with an undersupply of modern offices that cater to the evolving needs of tenants. The top end of the market continues to benefit from flight to quality. #Trophy #CBRE #CRE https://lnkd.in/e_Bci9gp
The Misunderstood U.S. Office Market | Brookfield
brookfield.com
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News: SIGNIFICANT OFFICE SPACE REPURPOSING SEEN ACROSS THE UK A significant amount of office space repurposing is taking place in the UK, although tenant demand is rising in London, according to research from the Royal Institution of Chartered Surveyors (RICS). In the institution’s Q1 2024 survey, 89% of respondents reported seeing some level of office space repurposing. More than half (52%) had seen an increase in the amount of office tenants downsizing during the past 12 months. RICS concluded that a gap was emerging between rising office demand in London and subdued demand in rest of the country. Facilitate Magazine RobinsonsFM #robinsonsfm
Significant office space repurposing seen across the UK
facilitatemagazine.com
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Our latest office report highlights a two-step office market. Changes in working trends have shifted the focus of demand towards modern offices, with higher amenities. Higher rents are needed for new builds to stack up. The report also provides insights on how secondary properties need higher incentives to maintain their face rents amongst weaker demand. Click below to read the report: https://lnkd.in/eE8_G_2X #BayleysCommercial #BayleysInsights #OfficeUpdate #newzealand
New Zealand office market update 2024
bayleys.co.nz
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There are a lot of conflicting reports over the shape of central London's office space demands. This article from The National suggests reports of the capitals demise as a space for businesses to run busy offices have been greatly exaggerated: https://lnkd.in/e7bugtb9 In fact office leasing activity in London during 2023 was surprisingly robust, indicating continued demand for office space. But that doesn't mean businesses aren't also considering their options in cities further afield. #Brighton has direct trains to central London whilst providing a generally more serene and slower pace of life for its inhabitants. Would you and your business like to join them? Speak to us about getting set up on the south coast and we'll find the perfect serviced office solution for your needs. jetspace.work #officespace #futureofwork #officespacebrighton #officespacesussex
Is London office space a sleeping giant or a dead duck?
thenationalnews.com
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Miami Office Market Resilience Miami’s office market is experiencing a unique situation where there’s a notable increase in the amount of new office space being delivered (12-month deliveries), even though there’s also a negative net absorption, meaning more space is being vacated than leased. This has led to an increase in vacancy to 8.8 %, still better than most markets throughout the country. Despite these challenges, rent levels have remained stable, which suggests that the demand for high-quality office space is still there, reflecting resilience in this market. #MiamiRealEstate #OfficeMarketTrends #CommercialRealEstate
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A further shift towards Serviced Offices in 2025? In this blog, we discuss how the traditional office lease with its long commitment periods seems to be further becoming a thing of the past, as serviced offices continue to rise. "There was a 206% increase in UK enquiries for flexible office space compared to pre-pandemic levels, with a 14% rise year-on-year to the end of June 2024." (Office Space in Town). Access our blog here: https://lnkd.in/ea7UXBx7 #Hubflow #ServicedOffices #LondonOffices
Flexibility Guaranteed: A Shift to Serviced Offices in 2025
https://hubflow.com
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As Office Construction Slows, Availability Starts to Tighten according to CoStar As office construction slows down and leasing activity improves, the availability of premium office space is tightening across key markets. Nationally, this phenomenon has resulted in the office vacancy to availability gap shrinking below levels last seen near the end of 2019. Data shows that occupiers are still moving away from older office buildings as they search for premium, first-generation space. This dynamic is reshaping the office leasing landscape, making it more crucial than ever for tenants with top-tier taste to secure spaces before options dwindle further. With fewer options, many tenants may elect to stay where they are, a positive development for current landlords. To read more, click the link below: https://lnkd.in/eUTzitzg #CRE #CostarInsight #MarketTrends #RealEstateDevelopment #OfficeLeasing
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2moWe cannot paint all properties with one broad brush; excellent insight here.