Nation`s largest office landlords say leasing is hitting post-pandemic highs

Major office landlords, after a cautious start to the year, are now shedding some of their wariness as leasing momentum across the country heads back to pre-pandemic levels.

Some of the nation`s largest owners, such as Piedmont Office Realty Trust and Highwoods Properties, are reporting an amount of leasing not seen since COVID-19 sent workers home and upended demand for the office sector.

Data backs this up. A CoStar analysis shows new leasing volume in the first three months of the year neared 2019 levels, providing "the clearest signal yet that the office market has at last entered the recovery phase." Construction starts are at historic lows, limiting the building supply and leading executives to expect that a national vacancy rate that remains at a record high of 14% will eventually head lower...

   ...more

RSK: It has been a slow steady increase and mainly class A and small single offices. The cost to rehab and bring up to date class B space with construction cost being so high makes it difficult for those spaces to be appealing.