Class A offices considered not safe havens anymore, urban office are
Safe havens are continuing to disappear for office sector investors, said Moody’s Analytics in its recent post.
For the first time in over a year, class A urban office performance has hit the skids. Occupied stock, which had been growing steadily in central business districts, sharply declined to end 2022.
The report illustrates an inflection point in relation to its free-falling Class BC counterparts. The net leasing activity is beginning to turn south even within those higher quality, urban assets. This is consistent with recent news of defaults of class A properties in Los Angeles and other major cities around the United States.
Moody’s Analytics forecasts is for the office vacancy rate to keep rising this year and into next, and unfortunately tempt the historic high of 19.3 percent last hit during the Savings and Loan Crisis.
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