CommercialEdge - Office Report, June 2023

This report focuses on the impact of remote and hybrid work on the office market. The report shows that remote work has changed the relationship between companies and workers, but the amount of remote workers varies widely from city to city. Some markets with a high concentration of tech firms have the highest share of remote workers, but they also have seen the highest spike in vacancies. Well-positioned assets in these markets will continue to perform well, but older and poorly located properties will face the most challenges. The report covers 10 of the largest markets, and publicly available key card swipe data from Kastle Systems supports the Census data on where people are going into the office and where they are working from home. The report also covers office buildings 25,000 square feet and above. CommercialEdge subscribers have access to more than 14,000,000 property records and 300,000 listings for a continually growing list of markets. CommercialEdge collects listing rate and occupancy data using proprietary methods. Listing Rates are full-service rates or “full-service equivalent” for spaces that were available as of the report period. CommercialEdge uses aggregated and anonymized expense data to create full-service equivalent rates from triple-net and modified gross listings. Expense data is available to CommercialEdge subscribers. National average listing rate is for the top 50 markets covered by CommercialEdge. Overall, the report suggests that remote work has had a significant impact on the office market, and that markets with a high concentration of tech firms are likely to continue to see high levels of remote work. However, well-positioned assets in these markets will continue to perform well, while older and poorly located properties will face the most challenges.