Effective rents weighed down by growing office concession packages
Despite high office rents, elevated free rent and construction costs impair landlord cash flows
There are a lot of ways to analyze a lease transaction, and points of view vary depending on which region of the country and on which side of the negotiating table you're sitting.
Higher tenant improvement costs pin office rents to the ceiling
Office landlords cannot afford to lose money building out the type of new office suites tenants demand
For several years now, the office market has found itself in an unusual, if not unprecedented, situation. Despite record office vacancy, the price of leasing space has kept moving ...
A closer look at the office rent paradox
It is rare for office rent and vacancy to increase at the same time, but not unprecedented
Despite record-high office vacancy, asking rents for those properties have continued to climb, creating a paradox that can puzzle many in commercial real estate. How can office ren...
Despite increase in asking rents, 'real' office rents have declined
Inflation has far outstripped the slow rise in the sticker price for office space
That asking office rents have actually risen in an era of historically high vacancy rates presents something of a conundrum to commercial real estate observers. Several factors hel...
Why are office rents still climbing? It’s complicated.
Despite the laws of supply and demand, office rents keep floating higher
When office vacancy rates soar to record highs, and tenants scramble to return unwanted space to landlords in droves as they have recently, it would be natural to expect rental rat...
As office demand reconnects to jobs, slow-growth forecast weighs on outlook
A familiar demand driver comes back into focus as fallout from the pandemic subsides across the workplace
More than four years have now passed since the onset of the pandemic in the United States, and the havoc wreaked on demand for office space is finally tapering off. The outlook for...
As office construction levels wane, some of the right buildings are in the wrong location
Demand for space in new office buildings slows as availability in desired places recedes
Throughout the post-pandemic era, the resilience of new office construction has been one of the very few bright spots in the commercial office market. Now, with development at a hi...
Stagnant Job Growth in Knowledge Work Sectors Provides Little Solace to Boston’s Office Market
Despite Losses in Key Sectors, Boston Area has Added Just Over 30,000 Jobs Since July 2023 as Nonfarm Payrolls Inch Closer to Pre-Pandemic Mark
Preliminary employment data for Boston from the Bureau of Labor Statistics indicates hiring slowed slightly across the metropolitan area in July, with seasonal losses in the Govern...
Buzzing Office Leasing Market Reflects Recent Shifts in Players, Space Requirements
Transactions Increase, but Smaller Deal Sizes Weigh on Leasing Volume
The office leasing market has never been more active. A historically high number of tenants are seeking workplace space for their employees, keeping brokers busier than ever. Howev...
The Economy Begins To Show Signs of Exhaustion
Recession Fears Abound After Latest Jobs Report
Financial markets began tumbling last week and continued their fall early this week after the release of the July jobs report.
Cooling Labor Market Brings Soft Landing in Sight
Unemployment Ticks Higher Even As Employers Add Jobs
The June employment report from the Bureau of Labor Statistics confirmed what is widely expected — a slowing labor market after two years of pandemic-related disruption.
Once a Strong Bet, Renovating Offices Now Looks Riskier
Benefits of Overhauled Offices Often Fleeting As Tenant Space Needs Change
Renovating older office buildings is a time-honored strategy for maintaining occupancy. Despite this track record, however, recent history suggests that a future payoff for this ap...
Newly Built Office Buildings Hang Onto the Greatest Demand
Office Tenants Still Fill New Construction, but Leasing Pace May Be Slowing
The office market has become a less-than-zero-sum game since 2020, one in which only buildings not yet a decade old have managed to increase occupancy. But now it faces another unp...
Dwindling Pipeline for New Offices Has a Different Look
Recent Construction Starts Are Concentrated in a Few Markets and Target Specialty Uses
The rising cost of capital and uncertain future demand have resulted in a dramatic decline in office construction activity. Furthermore, the composition of the projects that remain...
Yet Another Surprisingly Robust Labor Market Update
Hiring Remains Strong Even As Unemployment Ticks Up
Employment growth was surprisingly strong in May, as employers added 272,000 jobs, according to the federal Bureau of Labor Statistics. This was far above consensus expectations of...
Cities With Higher Living Costs See Weaker Office Demand
More Expensive Markets Post Biggest Declines in Occupancy
The longer the post-pandemic turmoil in office demand continues, the more clues emerge about what separates the wheat from the chaff for this property type. The relative cost of li...
Office Lease Exposure Risk Ramps Up
For Some Building Owners in Major Cities, the Lease Expiration Wave Is Just Beginning
The long-term nature of office leasing has slowed the market’s adjustment to the shift in office utilization catalyzed by the COVID-19 pandemic, helping building owners preserve at...
Office Building Owners Look for Long-Term Leases
In Market Where Tenants Hold the Upper Hand, Duration Is One Card Some Landlords Can Afford To Play
With record-high space availability, office tenants looking for suitable space at a good price are in a strong negotiating position. But owners of market-leading office buildings a...
The Complex Relationship Between Office Attendance and Demand Keeps Evolving
Usage Patterns May Have Stabilized, but Footprints Are Still Adjusting
As a fifth consecutive year of declining office demand begins, it is clear enough that lower daily attendance has been a catalyst for shrinking space requirements. However, the var...
Retail Sector's Recovery After Great Recession Provides Playbook for Office Market
For Offices Facing a Structural Change in Demand, Retail Offers a Comparison — and a Path Forward
The Great Recession triggered massive upheaval across the commercial real estate industry, and no sector was hit harder than retail. Its travails and subsequent recovery over the p...