Portra
But it may take a while before these federal lease terminations work their way into CRE delinquency rates.
Vacant office space in the US grew by an additional 8.06 million square feet (s.f.) in Q1, the 18th quarter of negative net
Office Vacancy Rate In The U.S. Worsens To Record 22.6% In Q1 Amid Federal Government Lease Terminations
Summary
- Vacant office space in the US grew by an additional 8.06 million square feet in Q1, the 18th quarter of negative net absorption over the past 20 quarters.
- The drivers behind the jump in vacancies were primarily lease terminations by the federal government and federal contractors putting leased office space on the sublease market.
- New office construction has fizzled obviously under these conditions, with groundbreakings in Q1 being under 1 million s.f.
Wolf Richter is the analyst at, and the publisher of, WOLF STREET, where he discusses business, finance, and money. Core focus: Federal Reserve, credits, equities, residential and commercial real estate, the auto industry, trade, consumers, and energy. He started this operation in 2011. Prior to that, he worked for 20 years in C-level positions, including 10 years in the auto industry. MBA from the University of Texas at Austin.