Advertisement
Back To Daily Digest
Tags: BUSINESS

The Office Sector Is Slowly Recovering

The most recent CommercialEdge Office National Report revealed that the commercial office industry is slowly recovering from the pandemic.

According to the report, the average national full-service equivalent listing rate grew 26 cents from December to $38.32 per square foot in January.

The report stated that office-using sectors have performed well in 2020 and office-using employment is on the path to recovery to pre-pandemic levels. However, the vacancy rate continues to climb.

This is particularly evident in cities with high lease rates like San Francisco, New York City, and even secondary cities like Nashville and Austin.

The Latest News
Delivered To Your Inbox

“While both are major beneficiaries of coastal outmigration, they are also dealing with major supply pressure. Nashville’s office stock increased 4.1% last year, while Austin’s rose 3.9%,” the report said. “Combining new stock with a heavy tech industry predominantly working from home has led to the uptick in vacancy.”

Despite the growth of office vacancies, the coworking sector has been a light within the industry as some commercial real estate firms adopt revenue-sharing agreements to bring tenants back in.

This is helpful as many businesses are still hesitant to sign onto long-term leases and look to flexible workspaces for an alternative workspace solution.

ABOUT Aayat Ali
Aayat Ali

Aayat is an editor for the Daily Digest based in Lexington, Kentucky. She has worked with local coworking spaces since August of 2017 and enjoys taking her firsthand knowledge to write about the fascinating, constantly evolving world of flexible workspaces. Feel free to reach out to her at [email protected] View all posts by Aayat Ali

Latest on Daily Digest

How AI Can Facilitate Innovation

What The Future Of Work Won’t Involve

Adam Neumann And SoftBank Approach Settlement Deal

Downtown Brooklyn Complex Ushers In New Leases

IWG Takes Over Third WeWork Hong Kong Location

HSBC To Move Forward With Office Reduction

Pacific Northwest Region Sees Bump In Leasing Activity

Brooklyn Coworking Firm Cuts Space In Half

Coworking Valuations Are Due For An Update

The Office Sector Is Slowly Recovering

Ad
Advertisement

FOLLOW US

  • Facebook
  • Twitter
  • LinkedIn
  • RSS
  • instagram
  • pinterest
Ad
Advertisement
Advertisement
Advertisement
Advertisement