Office Market

Extracted Attributes

• Market Segments

  Retrofits, New Construction, Trophy Assets

• National Vacancy Rate

  20.0% (as of late 2024)

• Key Financial Strategy

  Pretend and Extend (used by banks to delay foreclosures)

• Primary Economic Drivers

  Remote work adoption, high interest rates, oversupply of dated space

• New York City Vacancy Rate

  13.3% (Q3 2024)

• San Francisco Vacancy Rate

  22.1% (Q3 2024)

Timeline

• Beginning of an 18-quarter period of major occupancy losses in the national office market following the pandemic outbreak. (Source: Newmark US Office Market Overview)

  2020-04-01

• Work-from-home trends generally stabilize, influencing long-term tenant evaluation of space needs. (Source: Newmark US Office Market Overview)

  2023-01-01

• District of Columbia reports a 2.8% unemployment rate and an uptick in institutional investors targeting distressed office assets. (Source: Newmark DC Office Market Report 2Q24)

  2024-06-30

• Conclusion of the 18-quarter loss streak; national vacancy rates peak at record highs near 20%. (Source: JPMorgan 2025 Trends)

  2024-09-30

• National office market growth pauses in the first quarter, with occupancy gains in Eastern markets offset by losses in the West. (Source: Newmark US Office Market Overview)

  2025-03-31

Marketplace

A marketplace, market place, or just market, is a location where people regularly gather for the purchase and sale of provisions, livestock, and other goods. In different parts of the world, a marketplace may be described as a souk (from Arabic), bazaar (from Persian), a fixed mercado (Spanish), itinerant tianguis (Mexico), or palengke (Philippines). Some markets operate daily and are said to be permanent markets while others are held once a week or on less frequent specified days such as festival days and are said to be periodic markets. The form that a market adopts depends on its locality's population, culture, ambient, and geographic conditions. The term market covers many types of trading, such as market squares, market halls, food halls, and their different varieties. Thus marketplaces can be both outdoors and indoors, and in the modern world, online marketplaces. Markets have existed for as long as humans have engaged in trade. The earliest bazaars are believed to have originated in Persia, from where they spread to the rest of the Middle East and Europe. Documentary sources suggest that zoning policies confined trading to particular parts of cities from around 3000 BCE, creating the conditions necessary for the emergence of a bazaar. Middle Eastern bazaars were typically long strips with stalls on either side and a covered roof designed to protect traders and purchasers from the fierce sun. In Europe, informal, unregulated markets gradually made way for a system of formal, chartered markets from the 12th century. Throughout the medieval period, increased regulation of marketplace practices, especially weights and measures, gave consumers confidence in the quality of market goods and the fairness of prices. Around the globe, markets have evolved in different ways depending on local ambient conditions, especially weather, tradition, and culture. In the Middle East, markets tend to be covered, to protect traders and shoppers from the sun. In milder climates, markets are often open air. In Asia, a system of morning markets trading in fresh produce and night markets trading in non-perishables is common. Today, markets can also be accessed electronically or on the internet through e-commerce or matching platforms. In many countries, shopping at a local market is a standard feature of daily life. Given the market's role in ensuring food supply for a population, markets are often highly regulated by a central authority. In many places, designated marketplaces have become listed sites of historic and architectural significance and represent part of a town's or nation's cultural assets. For these reasons, they are often popular tourist destinations.

Web Search Results

• District of Columbia Office Market Overview - Imgix

  NEWMARK District of Columbia Office Market Overview 2Q24 NEWMARK 2 Market Observations ‒ The region’s labor market remains strong amid shifting macroeconomic conditions. May’s 2.8% unemployment rate remains significantly lower than the region’s ten-year historical average of 3.9%. Furthermore, the Washington DC metro’s unemployment rate is 120 basis points lower than the national rate. [...] pervasive trend and is especially observed among Trophy assets. [...] ‒ 2024 year-to-date has seen a stark uptick in institutional investors coming back to the DC office market, while unconventional investors have begun to show interest as well. This coincides with an increase in transaction volume of distressed assets selling at a fraction of their last sale price. This presents the new owners the opportunity to acquire poor performing assets significantly lower than replacement cost with the intention of renovation/lease up or conversion.

• Office Space Market Size, Share, Growth & Analysis by 2032

  The market for office space market growth is driven by an increase in infrastructure projects for the commercial sector, such as the construction of new office buildings, business parks, or renovations of workplaces in urban areas. Additionally, this development brings in business, encourages the creation of jobs, and raises the need for office space in both developing and developed areas. Additionally, as more individuals move to urban regions in search of more opportunities and business [...] The office space market analysis is segmented into type, sale type, end user, and region. The types covered in the study include retrofits and new construction. Based on sale types, the market is divided into rent and sell. By end user, it is bifurcated into finance sector, retail and consumer goods, IT and telecommunication, co-working space, manufacturing industry, and others. By region, the office space market forecast is analyzed across North America (the U.S., Canada, and Mexico), Europe [...] The office space market is divided into retrofits and new construction. Retrofitting an office involves applying changes to an already operational space to enhance it. The goal is to boost production and enhance staff well-being while keeping standards and training in perspective. This comprises employing sustainable practices, updating systems such as lighting and HVAC, integrating technology, and optimizing space layout for flexibility. In addition, new construction office space is produced

• 2025 Commercial Real Estate Trends | JPMorganChase

  Some office markets may be normalizing: The office sector’s vacancy rate dropped to 20.0% following record-high levels for three straight quarters, according to Moody’s CRE. “There are some suburban office markets that are showing signs of cap rate flatness or even declines,” Calanog said. But office’s dynamics can vary significantly from one city to the next. For example, New York’s Q3 vacancy rate was 13.3%, while San Francisco’s was 22.1%, according to Moody’s CRE.

• United States Office Market Overview

  report explores the current state of the national office market and highlights trends to look out for in the future. [...] Growth in the national office market paused in the first quarter of 2025, with occupancy gains in Central and Eastern markets offset by losses in the South and West. Still, the momentum has shifted following 18 quarters of major losses from 2Q20 to 3Q24, with conditions pointing towards improvement in the coming quarters. Remote work continues to influence tenants’ evaluation of their space needs—though work from home trends have been generally stable since the first quarter of 2023. This [...] for 40% of the under-construction inventory, much of which is scheduled for delivery by year-end 2025.

• The Misunderstood U.S. Office Market

  Why now? The office market has been impacted by several converging factors: the pandemic accelerated the adoption of technologies that change the way we utilize offices and their core function, tenant preferences have shifted to buildings with modern amenities and functionality, and the recent rise in interest rates has exposed older office buildings as uneconomical. [...] ## Introduction Vacancy rates in the United States’ office market have dominated headlines since 2020 and the aftermath of the COVID pandemic. With the implementation of flexible and work-from-home policies, many attribute the weak occupancy rates in the market to diminished tenant demand. But we believe the real issue facing the sector is one of oversupply: dated, functionally obsolete office space is plentiful while office buildings that can meet modern tenant preferences are limited. [...] As a result, there will be a wide distribution of outcomes for owners, lenders, and local communities as a portion of the U.S. office market will need to be renovated or repurposed.