U.S. Office Market Outlook Gloomy As Availability Hits New High

The U.S. office market turned in a dismal first quarter to start a year that many in commercial real estate see as one meant for treading water and waiting for calmer seas. Available space is at record levels, overall demand is tepid and formerly vigorous space takers, such as tech, are paring back their usage.

The outlook, especially following last week’s higher inflation numbers and the subsequent doubts that an interest rate cut is in the near future, is also bleak. Familiar beacons of hope, like return-to-office and conversion potential, are waning as debt bears down on landlords.

“There’s just no tenants right now....
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RSK: Ust not pretty out there right now, and office will take another hit soon when all the mortgage notes come due.