On today’s show we’re taking another look at the prospects for the office segment. This is brought to you as a result of new report published by brokerage house Marcus and Millichap.
The report tells a tale of pain and opportunity.
Roughly 90 million square feet of new inventory is expected to be added to the market. These projects were started before the pandemic. As you know, once a project starts, you need to finish it. Markets that welcomed the most inventory were led by New York with 6 million square feet, followed by Chicago with 4.3 million square feet and Dallas-Fort Worth with 3.8 million square feet.
While the addition represents about 1% growth in the overall office square footage, the vacancy rate market wide is currently at 16% overall. But the hardest hit properties were those in the urban core. San Francisco had the biggest jump in vacancy to 18.4% as 14 million square feet were vacated.
To download the full report, here’s a link to get it.