Office sector will continue 'to languish' in 2023, market watchers predict - Phoenix Business Journal

  • 📰 phxbizjournal
  • ⏱ Reading Time:
  • 32 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 16%
  • Publisher: 63%

United States Headlines News

United States Latest News,United States Headlines

The U.S. office market still hasn't recovered since the pandemic forced office employees into remote work, a trend that remains strong even as a growing number of companies become more aggressive about getting employees back to the office.

Preliminary data from U.S. markets tracked by Savills PLC indicates about 46 million square feet of office leasing activity occurred in Q4 2022, or about 20% below leasing activity observed in Q4 2019, before the Covid-19 pandemic, saidThat's also below office leasing activity observed a year prior, when 60 million square feet of office leasing activity took place in Q4 2021 across markets tracked by Savills.

And while a more pessimistic economy could mean employers will wrest some control away from employees that've had leverage amid a historically tight labor market, it's going to be hard to put the genie back in the bottle when it comes to remote work, Soto said., principal consultant at CoStar Group Inc.'s advisory services business, said she's expecting 2023 to be slow overall on the office leasing front, and vacancy rates will continue to rise across the U.S.

The remote work trend has continued to be sticky since the pandemic, even as concerns about the virus' spread waned, especially, in 2022.

Source: News Formal (newsformal.com)

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 254. in US

United States Latest News, United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

The ERC application window will start to close in 2023 - Phoenix Business JournalThe Employee Retention Credit could mean thousands of dollars for small businesses, but 2023 will be an important year for those looking to maximize the tax credit. Here's why.
Source: phxbizjournal - 🏆 254. / 63 Read more »

10 hottest concerts coming to Phoenix in 2023Some of the biggest touring acts in the world are headed to the Valley this year. Here are the hottest tickets on the market.
Source: axios - 🏆 302. / 63 Read more »

Office Owners Already Reeling From Remote Work Now Face Recession Risk in 2023Owners of office buildings stumbled through 2022, when their holdings underperformed most every other type of commercial real estate. Now, a possible recession is making the outlook for 2023 even gloomier.
Source: WSJ - 🏆 98. / 63 Read more »

The ERC application window will start to close in 2023 - San Francisco Business TimesThe Employee Retention Credit could mean thousands of dollars for small businesses, but 2023 will be an important year for those looking to maximize the tax credit. Here's why.
Source: SFBusinessTimes - 🏆 78. / 68 Read more »

The ERC application window will start to close in 2023 - Jacksonville Business JournalThe Employee Retention Credit could mean thousands of dollars for small businesses, but 2023 will be an important year for those looking to maximize the tax credit. Here's why.
Source: JaxBizJournal - 🏆 599. / 51 Read more »

The ERC application window will start to close in 2023 - Dallas Business JournalThe Employee Retention Credit could mean thousands of dollars for small businesses, but 2023 will be an important year for those looking to maximize the tax credit. Here's why.
Source: DallasBizNews - 🏆 525. / 51 Read more »