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> Vacancy rates for commercial real estate are what 20-30%? US doesn't look great: Office Vacancy Rates by City: 1. San Francisco: 31% 2. Los Angeles: 26%

by kmlx 3y ago

> Vacancy rates for commercial real estate are what 20-30%? US doesn't look great: Office Vacancy Rates by City: 1. San Francisco: 31% 2. Los Angeles: 26% 3. Chicago: 24% 4. Phoenix: 24% 5. Cleveland: 23% 6. Denver: 22% 7. Philadelphia: 19% 8. Boston: 19% 9. Houston: 19% 10. Austin: 19% 11. New York: 17% 12. Dallas: 17% 13. Miami: 16% 14. Detroit: 13% 15. Seattle: 11% from https://twitter.com/KobeissiLetter/status/1666089781951107076 https://twitter.com/KobeissiLetter/status/166608978195110707... but other places, like London UK, are getting back on track: > This reflected a total vacancy rate of 8.9% and remained above the 10-year average of 5.5% from https://www.jll.co.uk/en/trends-and-insights/research/q1-2023-central-london-office-market-report https://www.jll.co.uk/en/trends-and-insights/research/q1-202...

what-the-grump 3y ago
Also, in US, landlords outside of huge metro areas and non class A buildings in metro, are throwing out crazy TI credits and building offices for free for a lease. So if you are looking for an office because you have some portion of the workforce that prefers it. A great time to get a new office built out for free, on a very cheap lease. I have clients that are having entire floors redone for free because they just mentioned cancellation/renegotiation of a lease.
- wlesieutre 3y ago
  For anyone not in the real estate market, "TI" here is "tenant improvement" and basically means all the construction that the owner does to configure the space to the needs of whoever is leasing it
judge2020 3y ago
Slightly related, not sure why Atlanta is left out of many statistics like this. Atlanta's metro population is bigger than most of those cities.
- biztos 3y ago
  Maybe because the city of Atlanta itself is number 38 by population in the US? https://en.wikipedia.org/wiki/List_of_United_States_cities_by_population https://en.wikipedia.org/wiki/List_of_United_States_cities_b... But indeed, its metro area seems to be number 8 in the US: https://en.wikipedia.org/wiki/Metropolitan_statistical_area https://en.wikipedia.org/wiki/Metropolitan_statistical_area A quick search suggests it has a commercial vacancy rate of around 22-24%: https://atlanta.urbanize.city/post/report-late-2022-office-industrial-leasing-led-country https://atlanta.urbanize.city/post/report-late-2022-office-i...
ZeroCool2u 3y ago
Knowing how NYC real estate operates, I'm willing to bet that 17% wildly under estimates the true numbers of what we'd consider 'office space'.
- what-the-grump 3y ago
  Its not doing great. I know that people that are still holding offices are getting their pick of the litter right now. "The company below left, so we added their space to the lease and got all the furniture, for 10% of the rate" "Sub tenant left so we got a great deal on taking over their space as is" this and this "We have extra space because 70% are WFH would you like to sub lease it we have 3 other companies here and all the infra setup, plus our break room is nice" Buildings reporting the empty spaces as being turned / under construction to juke up occupancy rates. All matter of BS to pump numbers. I am not even in the industry and I've seen this stuff first hand.
p0pcult 3y ago
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by kmlx 3y ago

what-the-grump 3y ago

Also, in US, landlords outside of huge metro areas and non class A buildings in metro, are throwing out crazy TI credits and building offices for free for a lease. So if you are looking for an office because you have some portion of the workforce that prefers it. A great time to get a new office built out for free, on a very cheap lease. I have clients that are having entire floors redone for free because they just mentioned cancellation/renegotiation of a lease.

wlesieutre 3y ago
For anyone not in the real estate market, "TI" here is "tenant improvement" and basically means all the construction that the owner does to configure the space to the needs of whoever is leasing it

judge2020 3y ago

Slightly related, not sure why Atlanta is left out of many statistics like this. Atlanta's metro population is bigger than most of those cities.

biztos 3y ago
Maybe because the city of Atlanta itself is number 38 by population in the US? https://en.wikipedia.org/wiki/List_of_United_States_cities_by_population https://en.wikipedia.org/wiki/List_of_United_States_cities_b... But indeed, its metro area seems to be number 8 in the US: https://en.wikipedia.org/wiki/Metropolitan_statistical_area https://en.wikipedia.org/wiki/Metropolitan_statistical_area A quick search suggests it has a commercial vacancy rate of around 22-24%: https://atlanta.urbanize.city/post/report-late-2022-office-industrial-leasing-led-country https://atlanta.urbanize.city/post/report-late-2022-office-i...

ZeroCool2u 3y ago

Knowing how NYC real estate operates, I'm willing to bet that 17% wildly under estimates the true numbers of what we'd consider 'office space'.

what-the-grump 3y ago
Its not doing great. I know that people that are still holding offices are getting their pick of the litter right now. "The company below left, so we added their space to the lease and got all the furniture, for 10% of the rate" "Sub tenant left so we got a great deal on taking over their space as is" this and this "We have extra space because 70% are WFH would you like to sub lease it we have 3 other companies here and all the infra setup, plus our break room is nice" Buildings reporting the empty spaces as being turned / under construction to juke up occupancy rates. All matter of BS to pump numbers. I am not even in the industry and I've seen this stuff first hand.

p0pcult 3y ago

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