A recent report from commercial real estate platform Crexi has shown that investors had become more active in their search for office deals in the first quarter of 2021 than they were the previous quarter.
As vaccinations become available to a significant portion of the U.S. population, tenant activity has climbed 42.9% during the same period.
Additionally, asking prices for office assets on Crexi grew for the third consecutive quarter, a 5.13% gain over fourth quarter numbers. However, new inventory added jumped 55.5% compared to the fourth quarter of 2020.
“This number likely represents a significant amount of sublease space, particularly of mid-sized offices as organizations seek a middle ground, where less space is needed overall, but more square footage per employee is needed to keep workspaces distanced,” the report states.
The report saw a variation in growing listings across industries. For instance, medical offices accounted for a large portion (36.9%) of listings in the first quarter, while the amount of flex space for least increased by 29.7%.
