Lease Losses

While most office buildings have not experienced large increases in vacancies due to the long-term nature of leases, this year leases for 243 million square feet come due, 11% of all US office space; the most ever in a year. The current vacancy rate is a post-pandemic high of 12.2%, up from 9.6% in 2019. Inquiries by potential tenants are down 50% from pre-pandemic levels and rising rates don’t help.