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Landlords Remain Bullish On Asking Rents

Aayat AlibyAayat Ali
August 5, 2021
in News
Reading Time: 1 min read
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Landlords Remain Bullish On Asking Rents

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According to a new report from commercial real estate firm Transwestern, landlords are expected to remain bullish about current asking rents as demand for office space grows.

Although tour activity has spiked, the report finds that major markets have yet to see “notable deal volume.” At the moment, vacancy rates are at 12.6% nationwide, but asking rents are up 1.9% year-over-year.

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“We expect pent-up demand to emerge starting in Q3 with greater traction in Q4, as tenants come off the sidelines,” the report reads. “With the market in tenants’ favor, select companies will take advantage of favorable financial terms… The office is not dead but will evolve to meet new challenges and work patterns.”

Around 1.6 million jobs were added during the second quarter, which is a key factor in driving office demand. Although most jobs that have been added were within the hospitality and leisure industries, 77% of office-using positions that were lost at the beginning of the pandemic have recovered.

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Nashville, Raleigh-Durham and Tampa were among the three markets that saw significant recovery.

Moving forward, many real estate executives believe that Labor Day will signify the true era of office recovery.

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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.

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