The basics:
CNBC indicates that 23.3 is slated for demolition or conversion to other uses while only 12.7 M SF of office space is projected to be completed.
Office vacancies currently at a record high of about 19%.
Markets starting to recover with 'back to work orders'.
Weitz - This is such a tough one. Classic example of how to turn bad news (offices are so worthless that they are being converted) into a 'good news' supply/ demand argument. At the end of the day, the best spaces will be taken and utilize. I love areas that are not within the large cities as those on the outskirts no long desire the commute to head into the big city. I think the B-C level office spaces (especially in big cities) face significant head winds. While the back to work orders are helpful, the reality is that we have changed the way we work and operate. Communal work spaces are now favored by many and part time office usage makes the 'footprint' businesses need shrink in terms of SF usage. Overall, I'm not sold that this supply/ demand shift will send the market soaring, but I do believe the shared work spaces will make a big comeback. Think a more reasonable 'WeWork' in the suburbs.
If you are looking at investment opportunities in Snohomish County Commercial Real Estate, feel free to reach out anytime.
Scott Weitz
Scott@WeitzCommercial.com
t: 206.306.4034.
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