CoStar’s National Director of Office Analytics Phil Mobley joins Michael on America’s Commercial Real Estate Show to talk about the U.S. office property market. Discussions include current and forecasted occupancy rates, office rental rates, loan interest rates, cap rates and demand for space. He notes that we are post pandemic in the way we live and work. Vacancy in Q3 2022 ticked up to 12.4% nationally, up 30 bps year over year. Costar predicts vacancy to rise over the next 12 to 18 months to approach 13.5%, notable given that office vacancy has never previously exceeded 13%. Given all the changes driven and/or accelerated by COVID-19, this is a must watch for anyone active in the office property market.
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