The office sector is finally looking up, after a few low years post-pandemic. As return-to-office policies are slowly but surely taking precedence, office demand is increasing alongside it. According to a recent analysis by Globest, there has been a rebound for class A and class A+ properties in top metro cities, as the market may have hit bottom.
As momentum builds, the second quarter of 2024 saw the first positive absorption rates since before the pandemic, followed by increase levels in the months after. About half of the top 100 office lease renewals were for equal amounts of space, one third of the renewals were for larger spaces. 2024 saw an increase in leased space to 28.9 million, compared to 2.1 million in the year before, according to Globest.
Lenders and investors are proceeding as if they are expecting the market to bottom. More than one third of office sales were purchase at a discount in 2024, showing an improvement from 2023. Prime office space is being
