Blog
‘I’ll Show You Mine, You Show Me Yours”: More Office Tenants Looking At Owners’ Books Before Signing Leases
It's traditional in lease negotiations for the owner of an office building to ask a prospective tenant to show proof that they are in good financial standing and can be expected to pay rent every month. But the public prognostications comparing office real estate to...
Some Life Insurers’ Office Portfolios Have Relatively High Vacancies
Rates Climb Above National Average for 11 of 15 Largest Property Holders of This Type. Life insurance companies, like some other investor groups, face deteriorating values in their U.S. office holdings. And some of those insurers are exposed to higher-than- average...
Key differences in which office markets are seeing growth in sublease inventory
Nationally, the amount of sublease space increased by almost 24% between Q1 2022 and Q1 2023 among 50 metro areas examined by Moody's Analytics Inc. Office sublease space is growing across the United States, but there are key trends that dictate which cities are...
Concessions offered to lure office tenants are eating away at landlords’ income
In New York, average work values (or tenant-improvement allowances) are up more than 46% since the third quarter of 2019, according to CompStak Inc. A growing spread between starting and effective rents illustrates how office landlords - even among coveted Class A...
Office Occupiers Continue to Review Their Space Needs
Colliers reported Q3 vacancy rates rose 30 bps; and 50 bps year-over-year. U.S. office vacancy rose at an increased pace in Q3 2022 and asking rents are mostly holding firm, but generous concessions remain on offer. Meanwhile, sublease space is at record levels,...
In the Office, ‘We’ Space Taking Over ‘Me’ Space
CBRE's office utilization survey finds increase in collaborative space design. Employees' workstyles have changed more in the past two years than in the previous 20, according to a new report about office space utilization by CBRE. Momentum was found with including...
First Remote Working. Now a Looming Recession. What’s Next for Troubled Office Buildings?
Although Current Distress Levels Are Low, Office Properties Backed by Nonperforming CMBS Loans May Signal Potential Defaults. The office sector is still reeling from the popularity of remote work, which means it will likely be more affected than other property types...
Office-demand indices continue to tumble at close of summer
Office demand continued to decline in August, the latest sign hybrid work and a more pessimistic economic outlook continue to weigh on the U.S. office market recovery. VTS lnc.'s monthly tracker of office space demand, the VTS Office Demand Index, found demand for...
Types of leases: An Overview
We all know what leases are–legal contracts by which the landlord conveys a property (real estate or equipment) to the tenant for a predetermined time frame. The tenant makes periodic payments to the landlord in exchange of right to use the property for the specified...
Big companies want their employees back in the office
We explain how workers are responding. The pandemic upended American offices like nothing in memory. But now many big companies are again starting to require employees to work in person. To understand how that’s going, I called my colleague Emma Goldberg, who covers...
A recession could be great for the Philadelphia office market, according to one local CEO
Would a recession be just the thing the office market, landlords and central business districts need to get things back to - or at least close to -pre-pandemic levels of occupancy? "If a recession were to occur, that balance between employee and employer could result...
