The U.S. office vacancy rate reached 17.5% at the end of August, rising 260 basis points over year-ago figures.
Loans on 18.1% of Class B assets — encompassing 594.2 million square feet — will reach maturity by the end of 2026.
As capital has become scarcer and more expensive, industrial construction starts and sales have slowed down in 2023.
As office construction continues to cool, a quarter of under-construction office space is now concentrated in just 6 life-science-heavy markets.
The sales volume dropped significantly compared to the $55 billion recorded during the same period last year.
From January to June of this year, office properties have been trading at an average price of $199 per square foot.
New starts continued to moderate across top industrial markets in the U.S., with few exceptions, such as Phoenix and Dallas.
Remote work is yet another challenge disproportionately impacting tech markets, pushing up office vacancy rates.
While the amount of space under construction remained high, new starts have started to slow, reflecting the current economic issues.
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