All articles tagged with #office vacancy
Parts of downtown Denver are struggling with high office vacancy and economic decline, especially in upper downtown, but areas like LoDo near Union Station are thriving, suggesting a potential for future revitalization through creative redevelopment and investment. The city faces significant challenges but also opportunities for rebirth, amid broader economic uncertainties.
Downtown St. Louis faces a challenging office market as a 44-story tower, once valued at $205 million, recently sold for just $3.5 million. Meanwhile, downtown Dallas grapples with a 26.5% office vacancy rate, prompting corporate relocations to Uptown and a shift towards hybrid work models. The region's fastest-growing in-migration offers some hope, but large chunks of office space will require backfilling as major firms like Deloitte, Goldman Sachs, and Bank of America move to Uptown, leaving significant vacancies. Office conversions to hotel space and residential units are seen as a potential solution, but their success remains uncertain.
Office vacancies in major U.S. cities have reached a record high of 19.6%, the highest since at least 1979, due to overbuilding and shifting work habits accelerated by the pandemic. The surge in vacancies can be traced back to the office-market downturn of the ’80s and ’90s, with many older office buildings struggling to find tenants. The trend of remote work and the shift towards smaller offices have further contributed to the increase in vacancies, with analysts expecting offices to remain emptier for longer due to the growing popularity of working from home.
The vacancy rate for office space in major U.S. cities has reached a record high of 19.6%, the highest since at least 1979, as a result of overbuilding and changing work patterns accelerated by the pandemic.