Portland Business Journal’s Post

Data from JLL suggests that while Portland still has some pain to work through, demand for office space in the urban core is starting to normalize to traditional patterns.

After a prolonged period of increased availability, Chicago's Class A office space has finally experienced a slight dip. This is the first time since the pandemic began that we're seeing a decrease, signaling a possible turnaround and a more positive outlook for the city's commercial real estate market. It's a hopeful sign that businesses are gradually returning to the office, reigniting demand for premium office space. However, it's important to note that we're not out of the woods yet. The dip is only marginal and there's still a long road ahead to full recovery. But this shift does represent an important step in the right direction. It's a testament to the resilience of Chicago's business community and the enduring appeal of its Class A office spaces. Let's keep the momentum going! #ChicagoRealEstate #OfficeSpace #MarketRecovery

Office markets across the nation are trending at record high percentage availabilities, with cities such as San Francisco now taking the lead at almost 33% availability. This is becoming a multi-billion square foot problem for US office real estate, but offers tenants at large an exceedingly advantageous opportunity to secure the ideal space for their teams. Learn more about what we’re seeing in the office market, in addition to how tenants can take advantage of the surplus of space and leverage rates that are reflective of the current availability in our spring office market report. #officemarket #marketreport #marketsurplus

Since the onset of Covid-19, there has been a significant decrease in the demand for office space, while industrial space has seen a marked increase in interest, leading to numerous suburban office buildings being transformed into industrial properties. These conversions, while challenging, are driven by clear economic incentives. Teresha Aird notes that this trend of suburban office-to-industrial conversions is picking up pace across the country, despite some regional challenges. https://hubs.li/Q02n2WFr0

Half of the leases in the United States have yet to expire, with companies that occupy 20% to 60% more office space than they’ll ever need in the future when they look to downsize or relocate. The US office markets are trending at record high percentage availabilities, on a base of US office space that is double what it was a quarter century ago. This is becoming a multi-billion square-foot problem for US office real estate, and the details of this analysis, along with the damage done and what is yet to come, are described in our latest national office market update. 

A substantial quantity of office space in major metros continues to go underutilized. This will impact tenants’ decisions when their leases expire, and likely will result in further downsizing as the opportunity to shed space comes up. Senior CRE Economist @XanderSnyder estimates how much office space remains underused in 10 major metros.

A substantial quantity of office space in major metros continues to go underutilized. This will impact tenants’ decisions when their leases expire, and likely will result in further downsizing as the opportunity to shed space comes up. Senior CRE Economist @XanderSnyder estimates how much office space remains underused in 10 major metros.

According to a recent Savills analysis, while office inventory is shrinking in several major cities across the U.S., the Seattle-Puget Sound area is bucking the trend with a robust 2.8% growth in office space. This expansion highlights the region's resilience and attractiveness to businesses, especially amidst broader market adjustments. Nationally, we're witnessing a nuanced shift with some markets facing reduced inventories due to conversions and a slowdown in new construction. Yet, places like Salt Lake City, Austin, and Dallas-Fort Worth are also on the rise, showcasing diverse regional dynamics. An intriguing takeaway is the dip in sublease inventory for the first time since 2021, signaling potential shifts in how companies approach office space post-pandemic. Especially in tech-centric cities, the evolving landscape of subleases and new developments points to a reimagining of workspace needs. For professionals eyeing the Pacific Northwest or other growing markets, these trends could signal new opportunities and a need to stay adaptive in our ever-evolving industry landscape. #smartcap #redmond #kirkland #bellevue #office #trends #officetrends #commercialrealestate #pugetsound #officemarket

A substantial quantity of office space in major metros continues to go underutilized. This will impact tenants’ decisions when their leases expire, and likely will result in further downsizing as the opportunity to shed space comes up. Senior CRE Economist @XanderSnyder estimates how much office space remains underused in 10 major metros.