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.
Rising interest rates have pushed loan coupons higher, lenders are cutting back to varying degrees and property fundamentals are weakening.
In a challenging economic environment, tech companies continue to trim their office footprint, pushing up vacancy rates.
Although transaction activity slowed considerably in Q1, industrial remains among the most desirable asset classes.
With so many headwinds impacting the sector, office landlords are faced with tough decisions as the future of offices remains unclear.
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