{"id":1004572969,"date":"2022-03-28T09:47:52","date_gmt":"2022-03-28T17:47:52","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004572969"},"modified":"2022-12-09T02:19:14","modified_gmt":"2022-12-09T10:19:14","slug":"flight-to-quality-phenomenon-continues-to-play-out","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/flight-to-quality-phenomenon-continues-to-play-out\/","title":{"rendered":"Flight to Quality\u00a0Phenomenon Continues to Play Out"},"content":{"rendered":"

\"commercialedge<\/a>Two years into the pandemic, businesses have started to open back up, while political and corporate leaders are urging people to move back to downtowns<\/a>. Despite this, office assets remain relatively empty, and it\u2019s unlikely that office-using levels will reach those from February 2020 again, according to the latest CommercialEdge office market report.<\/p>\n

Meanwhile, companies are trying to lure back workers to the office by betting on amenitized office buildings, further fueling the flight-to-quality trend<\/a> amplified by the pandemic. As a result, the average sale price for Class A assets in the last quarter of 2021 was 15 percent higher than in 2019. As a comparison, Class B buildings recorded a 6 percent increase during the same time frame. This translates into new opportunities\u2014and challenges\u2014for Class B and C assets, which will likely become targets for conversions<\/a> and redevelopments.<\/p>\n

Office transaction volume equaled $12 billion in the first two months of 2022. Office assets traded at an average $284 per square foot at the end of February, with lab space generating heightened investor activity. Sales were concentrated in the Bay Area, where $918 million worth of office assets changed hands year-to-date as of February.<\/p>\n

The national office vacancy rate clocked in at 15.7 percent in February, 70 basis points higher on a year-over-year basis and unchanged from the month prior. National average full-service equivalent listing rates averaged $38.62 per square foot at the end of February, up 120 basis points year-over-year. With new stock coming online, office listing rates reached new heights in markets such as Tampa, Fla., averaging $29.70 per square foot in February, or a 6.2 percent increase year-over-year.<\/p>\n

The office-using sector added 130,000 new jobs in February. Although there were 2 million fewer office jobs in February 2022 than in February 2020, all three office-using sectors have fully recovered from pre-pandemic levels. The strongest performance was recorded in the professional and business services sector, which grew between 5 percent and 6 percent year-over-year in recent months.<\/p>\n

Read the\u00a0full CommercialEdge office report<\/a>.<\/p>\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Growing investor interest in high-quality assets is changing the office landscape, the latest CommercialEdge report finds.<\/p>\n","protected":false},"author":741,"featured_media":1004573662,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[22251,23891,21742,21747,41267],"tags":[50674],"class_list":["post-1004572969","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-in-focus","category-national","category-latest","category-office","category-yardimatrix-reports","tag-commercialedge"],"acf":[],"yoast_head":"\nFlight to Quality\u00a0Phenomenon Continues to Play Out - Commercial Property Executive<\/title>\n<meta name=\"description\" content=\"Growing investor interest in high-quality assets is changing within the current office market, the latest CommercialEdge office report finds.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/flight-to-quality-phenomenon-continues-to-play-out\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Flight to Quality\u00a0Phenomenon Continues to Play Out\" \/>\n<meta property=\"og:description\" content=\"Growing investor interest in high-quality assets is changing within the current office market, the latest CommercialEdge office report finds.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/flight-to-quality-phenomenon-continues-to-play-out\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2022-03-28T17:47:52+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-12-09T10:19:14+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2022\/03\/Office-March-Report-iStock-1346227661.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"900\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Corina Stef\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/flight-to-quality-phenomenon-continues-to-play-out\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/flight-to-quality-phenomenon-continues-to-play-out\/\",\"name\":\"Flight to Quality\u00a0Phenomenon Continues to Play Out - 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