Office market trends vary globally, effecting occupancy rates, rents, NOIs and valuations across geographic regions. The post-pandemic recovery in the United States is lagging behind Europe and Asia Pacific, according to LaSalle Investment Management’s recent report, Revisiting the future of office.
In many markets, but especially North America, work-from-home
(WFH) headwinds have hit leasing demand as leases roll, notes the report, which was authored by Rich Kleinman, LaSalle’s head of U.S. research and strategy and co-CIO of Americas. At the same time, the cyclical outlook for job growth has weakened with the macroeconomy. These factors have contributed to deepening worries about the prospects for office values in North America.
Currently, North America’s vacancy rate of 17.2 percent is 3.2 percentage points above its l