South, Sun Belt office markets continue to outperform

The South and Sun Belt regions continue to outperform on the margin, though occupancy did see further declines in second quarter, according to Newmark in its second quarter 2023 office report.

Overall office investment activity decelerated once again in second quarter. While activity increased 4.8 percent quarter-over-quarter, it has declined 64.9 percent year-over-year in the first half of 2023. Office loan originations declined 60 percent quarter-over-quarter, while total originations so far in 2023 are down 55.4 percent compared with the first half of 2022. No market segment has been spared from the slowdown in transaction activity, though on the margin nonmajor markets, suburban assets, as well as Midwestern and Sun Belt markets, have been more resilient.

To read the full report, click here.