Market Reports
Industrial Sector Maintains Momentum Despite Uptick in Vacancy Rates  Â
Industrial vacancy rates rose 70 basis points from 3.9% in January 2023 to 4.6% in October but remained unchanged month-over-month.
Office Projects Face Delays, Cancelations as Uncertainties Linger
About 31 million square feet of new office space began construction in 2023, nearly half of the starts from the last two years.
Office Mortgage Maturities Signal Coming Distress
The volume of loan maturities is concerning as weaker demand, rising costs and lower property values squeeze office owners while banks and investors reduce exposure to offices.
Industrial Transactions Still Muted as Bid-Ask Gap Holds Firm Â
Sellers have yet to readjust price expectations, as buyers are unwilling to pay high prices amid expensive and limited financing options.
National Office Sales Volume at $25 Billion Through the First Three Quarters of 2023
The average sale price per square foot fell 21% Y-o-Y, with properties trading at an average of $198 per square foot through Q3 2023.Â
2023 Industrial Construction Starts Dip One-Third from Last Year
Competition for industrial space will increase in 2024 and 2025, but we anticipate construction starts to pick up again in 2026.
Office Vacancy Rates Continue to Rise Despite Return-to-Office MandatesÂ
The U.S. office vacancy rate reached 17.5% at the end of August, rising 260 basis points over year-ago figures.
Loans on Nearly 1 in 5 Class B Offices to Mature Soon. Where Are the Hotspots? Â
Loans on 18.1% of Class B assets — encompassing 594.2 million square feet — will reach maturity by the end of 2026.
Industrial Sector Pinched by Interest Rate HikesÂ
As capital has become scarcer and more expensive, industrial construction starts and sales have slowed down in 2023.
Life Science Sector Cools but Still Represents Nearly One Third of Under-Construction Office Space
As office construction continues to cool, a quarter of under-construction office space is now concentrated in just 6 life-science-heavy markets.
