It is no secret that the U.S. office market has been lagging behind in the broader commercial real estate recovery. The sector has struggled to regain its footing in a few key areas.
The biggest impediment to recovery continues to be tepid demand for space – primarily due to greater tenant emphasis on workplace efficiencies, corporate downsizing and lower levels of growth for office-using jobs specifically. “Tenants have gotten much more focused on space efficiency this cycle and packing more folks into a smaller number of seats,” said Jed Reagan, a senior analyst at Green Street Advisors. Green Street hosted a webinar on “US Office Real Estate: Fundamentals & Valuation” in early October that highlighted current conditions along with a look at what’s ahead for the market.