Real Estate Recap

FLIGHT TO QUALITY Tenants on average are seeking more amenitized spaces, in an attempt to recruit and retain employees. As a result, Class A office is being leased and absorbed while Class B/C office buildings see a large amount of supply being vacated.

SUBLEASE SPACE CONTINUES TO CHURN

Sublease availability sits at 5.3 MSF giving tenants options for plug-and-play spaces.

BUILDING’S DEFAULTS TO WATCH FOR THE NEXT 12 MONTHS

With approximately $2 billion of office loans reaching maturity within the next 12 months, many office landlords are looking to refinance and integrate unique features into their buildings in order to reinvigorate leasing velocity.

NEW CONSTRUCTION CONTINUES WINDING DOWN

Construction pipeline remains limited with two for lease buildings currently under construction.