Michael Lirtzman’s Post

To state the obvious, putting together office leases has been difficult in the face of uncertainties about employees’ appetite for in-office workdays and the high cost of fitting out attractive offices. Some brokers, however, are now seeing a little more optimism in the market and a little more willingness to lease new space. But they still have to clear big hurdles to get deals signed. In this story: KLNB, MacKenzie Companies Keep reading in our latest #NAIOPMD360: https://ow.ly/9zxy50QAnXP

Exploring the Dynamics of the Office Sector🏢 2023 left lingering questions amid record underperformance in vacancy and net absorption. Furthermore, the shift to smaller office footprints and a demand for higher quality assets continues. Gain valuable insights from this GlobeSt. article, where Michael Lirtzman, Colliers' US Head of Office Agency Leasing, discusses this further: https://ow.ly/QAY850R1vK0 #ColliersDC #Office

Heading into the second half of the year, office leasing activity across the country is on the rise while availability has stabilized over the last few months. As demand rises and supply remains stable, what opportunities do you see evolving for the office market for the rest of 2024? I am sure the election will have a big impact on what is next. Check out more insights in @Avison Young's recently released Q2 2024 office market report: https://lnkd.in/gtD98_f9  #CRE #AYdifference #realestate

Higher interest rates mean commercial property investments have to work harder, putting a burden of growth on the shoulders of occupiers and their ability to sustain rent increases that underpin office business models. https://ow.ly/GmAE50U6TxU Check out thesectorscope.com for news and analysis on the evolving office market.

And here we are: UK office market posts a positive (0.3%) 3-month total return in August 2024 for the first time since August 2022. Yet another sign that the real estate cycle in Europe has turned. And as per usual, it turns first in the UK where valuations are adjusted quicker to realities in transaction markets than in continental Europe. How robust the recovery will be is a different matter. It will, as one can judge immediately from this graph, e.g. depend on the sector. It will also depend on the assets within the same sector. There are e.g. multiple office assets out there that are struggling to attract tenants. They are generating the news headlines we see about the plight of the office sector. But there are assets within the sector that are generating healthy rental growth as they attract tenants looking for offices that are able to meet their preferences - and those assets are in short supply. Seldom, if ever, have asset selection and the right asset strategy been so important. (Data source: MSCI)

Our latest UK office analysis suggests that the limited amount of prime Grade A office space continues to drive record rental growth, driven by pre-letting activity. Prime office rents increased 7.6% year-on-year on average across the top ten regional markets in Q1 2024. Coverage in The Times here: https://lnkd.in/eDCYkTpY #offices #officeleasing #realestate BNP Paribas Real Estate

Canada's office real estate is at a turning point, facing changes and challenges due to hybrid work models, according to Colliers Canada's Adam Jacobs. Read more: https://lnkd.in/gysxTq2Y

U.S. office availability broke a decades-long record high of 1 billion square feet in the first quarter of the year, partially attributed to occupiers' hesitancy to commit to large block leases. However, there are some bright spots, particularly in the increase in term lengths for trophy properties. How do you anticipate this trend affecting your region's businesses and local economies? Stay ahead and read @Avison Young's Q1 2024 office market report: https://lnkd.in/gTv57f4y  #CRE #AYdifference

Since September 2020, office busyness across the U.S. has shown a remarkable year-over-year increase, as per Avison Young’s Office Busyness Index. Between 2020 and 2021, busyness grew by 75.2%, and an impressive 228.5% from 2020 to 2024. Key markets such as Los Angeles, Manhattan, Dallas–Fort Worth, Chicago, and Atlanta have outpaced the national average growth of 5.9% in September 2024, with each exceeding 7%. As we enter the fourth quarter, there's a notable rise in leasing commitments, reflecting a growing confidence among occupiers as office busyness stabilizes. Avison Young | US

Just dived into the latest Q3 2024 report on global prime office costs. We’re seeing a 3.1% increase year-on-year, driven by high demand for prime space. Densification strategies are shifting, reflecting changing workplace dynamics. Read more: