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 office vacancies.

Since the beginning of 2020, office occupiers have given back over 150 million square  feet, nearly 2% of inventory, according to CoStar data through June. So far this year,  tenants have vacated nearly 40 million square feet more than they have occupied,  putting 2023 on pace for the largest amount of negative net absorption on record.

As a result, the national office vacancy rate is at a record 13.1% and still climbing,  according to CoStar data.

Of the 15 life insurance companies CoStar data shows as holding the largest volume by  square footage of direct investments in office properties, 11 of those portfolios have  vacancies that exceed the national average.

Notably though …

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By Mark Heschmeyer and Nicole Shih, CoStar News, June 19, 2023