Market Report
U.S. Office State of the Market
H1 2024
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Key Insights
1
The office vacancy rate is expected to increase into Q3 of 2024, where it could potentially break 20%.
2
Average office attendance across the country has seen minimal growth over the last 12 months, hovering around 60% of 2019 levels.
3
Office rents have experienced growth of 1.3% year over year, leading to an average rent per SF of $36.49.
Key Takeaways
- Adapt to New Space Requirements: With office attendance stabilizing at 65-75% on peak days, businesses should reassess their space needs. Consider optimizing your portfolio for a hybrid work environment, potentially reducing space by up to 20%.
- Focus on Quality and Flexibility: As the market segments, prioritize high-quality, flexible office spaces that enhance employee experience. Amenities and design that support well-being are becoming crucial differentiators.
- Leverage Market Conditions: With vacancy rates at 18.4% and rising, tenants are in a strong position to negotiate favorable terms. Consider renegotiating leases or exploring premium spaces that may now be more accessible.
18
%
Elevated Vacancy Rates
60
%
In Office Slowdown
1
%
Rent Growth
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