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In 2024, Philadelphia's office leasing market is adapting to new work habits. Many companies still want traditional office space, but there's a growing interest in flexible workspaces. With a net absorption of -250,000 square feet in the past year and a growing availability rate now at 14.8%, landlords are offering better deals to attract tenants. Despite these challenges, good locations and modern offices are still in demand, showing hope for the market. McCann Commercial Real Estate Ty Martin, MBA Steve Hanscom Colin Kuni Sajan Blum Devon Runk

New Office Development Still Awaiting Recovery Amid ongoing discussions about the redevelopment of underperforming office buildings, the office sector is not expected to fully recover until the end of 2026 as rental and occupancy rates weaken. As such, new development of office space continues to rapidly decline. As corporate tenants evaluate their real estate needs, the office leasing process is becoming more complex, with an increase in subleases and slow-walking of the office leasing process. Landlords that are more flexible and more willing to take on complex projects are best positioned to boost occupancies. Crystal Lofing, Partner at Allen Matkins, and Matt Field, Co-Chief Executive Officer at TMG Partners, dig deeper into the current state of the office sector as part of the Winter 2024 Allen Matkins/UCLA Anderson Forecast California Commercial Real Estate Survey. If you would like more information pertaining to the article and the current market please reach out to me.

Check out this article from #CoStar Analytics. The Indianapolis Office market has shown some resiliency over the last couple of years compared to national averages. While there is still uncertainty surrounding the Office sector given the work from home environment, we are seeing consistent absorption of office space along with moderate rent growth. The increasing availability of sublet square footage is something we will be keeping an eye at SVN | Northern Commercial and how that may impact the Office sector within the Indianapolis Market/SubMarkets. - Indianapolis office sector has shown resilience in leasing despite broader tenant demand faltering. - Diverse demand drivers around Indianapolis continue to attract businesses. - 1.4 million square feet of new office space underway, but 92% pre-leased, minimizing impact. - Tenants committed to 2.3 million square feet of office space last year. - Leasing spiked in July and August, adding 641,000 square feet. - Average deal size during the spike was 3,554 square feet. - Recent three-month leasing saw 546,684 square feet leased. - Central Business District (CBD) attracted the most interest in 2024, with nearly 169,000 square feet leased. - CBD's Stutz Business and Arts Center had significant leasing activity. - Indianapolis office market has displayed resilience, outperforming national averages. - Vacancy stands at 9.6%, up slightly from last year but below the national average. - Annual rent growth in Indianapolis is 1.2%, above the national average. - Potential headwind: Sublet square footage available is increasing, reaching 1.1 million square feet.

There has been lots of talk about office vacancy rates. But is it possible that we will not have enough office space for the market? Tenants are demanding A class buildings, but the market is currently not building new office space in most markets throughout North America. "The overall availability rate for U.S. office space sits at a historic high of 23.7%, made up of 20% direct availability and 3.7% sublease availability. But Class-A buildings delivered in the 2010s and beyond have a 15.5% availability rate, much lower than the 27.8% availability rate for buildings in the same class that opened just a decade earlier."

An intriguing shift is happening in office leasing. After a long period of uncertainty, companies are gaining confidence in making real estate decisions, leading to a notable increase in leasing activity across several markets nationally. Industries like law, finance, and tech are returning, securing longer-term leases rather than short-term extensions. This is fueling competition for high-quality office spaces. Limited new construction is balancing the market, enabling a more natural absorption of existing office spaces. It’s exciting to see signs of a more stable market on the horizon. #OfficeLeasing #CommercialRealEstate #CRE #OfficeSpace

Savills has announced strong office take-up volumes for the City of London, with 2.79m sq ft of office space leased during H1. This marks a significant 10% increase compared to H1 2023, and a notable 19% increase over the five-year average. Savills also confirms that there is over 2m sq ft of office space in the City under offer, surpassing the long-term average by 21%.

Recent findings from Savoy Stewart reveal a significant surge in the demand for office space in London, reaching a ten-year high and marking a 34% increase from the previous year, 2023. 🔥 Here are some of the key revelations… 🏢 Companies are looking for nearly 12 million square feet of office space in London 🏙️ London has seen the biggest rise in office occupancy levels in Europe 📈 37% of space under construction and expected to be completed in 2024 has already been secured by occupiers Read the article below for more details 👇 https://hubs.li/Q02B4JkL0

Ottawa’s office market is undergoing a shift as businesses adapt to hybrid work models and changing space demands. This new trajectory reflects broader trends in the commercial real estate sector, with increased focus on flexibility and collaboration. Learn more about Colliers report on how Ottawa’s office market is evolving: https://ow.ly/FlxP50Tx9hW #CommercialRealEstate #OttawaMarket #OfficeSpace