{"id":1004661049,"date":"2023-04-28T02:49:23","date_gmt":"2023-04-28T10:49:23","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004661049"},"modified":"2023-05-05T05:12:45","modified_gmt":"2023-05-05T13:12:45","slug":"vacancies-continue-to-rise-amid-banking-turmoil-q1-office-analysis","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/vacancies-continue-to-rise-amid-banking-turmoil-q1-office-analysis\/","title":{"rendered":"Vacancies Continue to Rise Amid Banking Turmoil \u2013 Q1 Office Analysis"},"content":{"rendered":"<p>Future of office debates have reverberated in recent weeks as the stability of the banking system and their commercial real estate investments have come into question. First quarter data indicates the average office vacancy was trending up across regions as hybrid employment models prevail. The national office vacancy rate rose to 19.0 percent, above the peak vacancy observed during the early stages of the pandemic and close to its historic peak of 19.3 percent back in 1991. This represents the fourth straight quarter of office vacancy increases with few signs pointing towards a reversal in coming quarters.<\/p>\n<h2>Regional Vacancy Rates Q1 2020 &#8211; Q1 2023<\/h2>\n<div id=\"attachment_1004661058\" style=\"width: 810px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2023\/05\/0523_CPE_Moodys.jpg\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-1004661058\" data-attachment-id=\"1004661058\" data-permalink=\"https:\/\/www.commercialsearch.com\/news\/vacancies-continue-to-rise-amid-banking-turmoil-q1-office-analysis\/0523_cpe_moodys\/\" data-orig-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2023\/05\/0523_CPE_Moodys.jpg\" data-orig-size=\"800,620\" data-comments-opened=\"0\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}\" data-image-title=\"0523_CPE_Moodys\" data-image-description=\"&lt;p&gt;Source: Moody\u2019s Analytics CRE&lt;\/p&gt;\n\" data-image-caption=\"&lt;p&gt;Figure 1. Source: Moody\u2019s Analytics CRE&lt;\/p&gt;\n\" data-large-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2023\/05\/0523_CPE_Moodys.jpg?w=800\" class=\"size-full wp-image-1004661058\" src=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2023\/05\/0523_CPE_Moodys.jpg\" alt=\"Source: Moody\u2019s Analytics CRE\" width=\"800\" height=\"620\" srcset=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2023\/05\/0523_CPE_Moodys.jpg 800w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2023\/05\/0523_CPE_Moodys.jpg?resize=300,233 300w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2023\/05\/0523_CPE_Moodys.jpg?resize=768,595 768w\" sizes=\"auto, (max-width: 800px) 100vw, 800px\" \/><\/a><p id=\"caption-attachment-1004661058\" class=\"wp-caption-text\">Figure 1. Source: Moody\u2019s Analytics CRE<\/p><\/div>\n<p>Figure 2 highlights metro performance in our 12 largest office metros, revealing shared burdens with few standouts. Expensive markets such as New York, Boston, and San Francisco have been hit particularly hard given the financial incentives of downsizing or relocation. Metros in the Sunbelt fared better but maintained higher vacancy rates for longer periods, with Atlanta being a particular standout metro in the most recent quarter.<\/p>\n<p>While vacancy increases rose across the board, we see wide variation in rent price growth since the start of the pandemic in 2020. During this period, the national vacancy rate climbed from 17.0 percent to 19.0 percent. Effective rents, on the other hand, increased marginally from an average of $28.02\/sq ft. to $28.13\/sq ft despite significant inflationary pressures over the last year. Vacancies have risen in 92 percent (or 11 of the 12) largest office metros since Q1 2020, but effective rents are split evenly between increases and declines.<\/p>\n<h2>12 Largest Metros for Office, Q1 2020 \u2013 Q1 2023<\/h2>\n<div id=\"attachment_1004661060\" style=\"width: 810px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2023\/05\/0523_CPE_Moodys2.jpg\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-1004661060\" data-attachment-id=\"1004661060\" data-permalink=\"https:\/\/www.commercialsearch.com\/news\/vacancies-continue-to-rise-amid-banking-turmoil-q1-office-analysis\/0523_cpe_moodys2\/\" data-orig-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2023\/05\/0523_CPE_Moodys2.jpg\" data-orig-size=\"800,620\" data-comments-opened=\"0\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}\" data-image-title=\"0523_CPE_Moodys2\" data-image-description=\"&lt;p&gt;Source: Moody\u2019s Analytics CRE&lt;\/p&gt;\n\" data-image-caption=\"&lt;p&gt;Figure 2. Source: Moody\u2019s Analytics CRE&lt;\/p&gt;\n\" data-large-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2023\/05\/0523_CPE_Moodys2.jpg?w=800\" class=\"size-full wp-image-1004661060\" src=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2023\/05\/0523_CPE_Moodys2.jpg\" alt=\"Source: Moody\u2019s Analytics CRE\" width=\"800\" height=\"620\" srcset=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2023\/05\/0523_CPE_Moodys2.jpg 800w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2023\/05\/0523_CPE_Moodys2.jpg?resize=300,233 300w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2023\/05\/0523_CPE_Moodys2.jpg?resize=768,595 768w\" sizes=\"auto, (max-width: 800px) 100vw, 800px\" \/><\/a><p id=\"caption-attachment-1004661060\" class=\"wp-caption-text\">Figure 2. Source: Moody\u2019s Analytics CRE<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Future of office debates have reverberated in recent weeks as the stability of the banking system and their commercial real estate investments have come into question.<\/p>\n","protected":false},"author":3239,"featured_media":1004661058,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[37798],"tags":[],"class_list":["post-1004661049","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-rc-office-occupancy"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v23.4 (Yoast SEO v24.6) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Vacancies Continue to Rise Amid Banking Turmoil \u2013 Q1 Office Analysis - Commercial Property Executive<\/title>\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\/vacancies-continue-to-rise-amid-banking-turmoil-q1-office-analysis\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Vacancies Continue to Rise Amid Banking Turmoil \u2013 Q1 Office Analysis\" \/>\n<meta property=\"og:description\" content=\"Future of office debates have reverberated in recent weeks as the stability of the banking system and their commercial real estate investments have come into question.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/vacancies-continue-to-rise-amid-banking-turmoil-q1-office-analysis\/\" \/>\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=\"2023-04-28T10:49:23+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-05-05T13:12:45+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2023\/05\/0523_CPE_Moodys.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"800\" \/>\n\t<meta property=\"og:image:height\" content=\"620\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Nick Luettke\" \/>\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\/vacancies-continue-to-rise-amid-banking-turmoil-q1-office-analysis\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/vacancies-continue-to-rise-amid-banking-turmoil-q1-office-analysis\/\",\"name\":\"Vacancies Continue to Rise Amid Banking Turmoil \u2013 Q1 Office Analysis - Commercial Property Executive\",\"isPartOf\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/vacancies-continue-to-rise-amid-banking-turmoil-q1-office-analysis\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/vacancies-continue-to-rise-amid-banking-turmoil-q1-office-analysis\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2023\/05\/0523_CPE_Moodys.jpg\",\"datePublished\":\"2023-04-28T10:49:23+00:00\",\"dateModified\":\"2023-05-05T13:12:45+00:00\",\"author\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/56582b2734c608a2cae92a373014d3bf\"},\"breadcrumb\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/vacancies-continue-to-rise-amid-banking-turmoil-q1-office-analysis\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.commercialsearch.com\/news\/vacancies-continue-to-rise-amid-banking-turmoil-q1-office-analysis\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/vacancies-continue-to-rise-amid-banking-turmoil-q1-office-analysis\/#primaryimage\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2023\/05\/0523_CPE_Moodys.jpg\",\"contentUrl\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2023\/05\/0523_CPE_Moodys.jpg\",\"width\":800,\"height\":620,\"caption\":\"Figure 1. Source: Moody\u2019s Analytics CRE\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/vacancies-continue-to-rise-amid-banking-turmoil-q1-office-analysis\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.commercialsearch.com\/news\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Vacancies Continue to Rise Amid Banking Turmoil \u2013 Q1 Office Analysis\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#website\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/\",\"name\":\"Commercial Property Executive\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.commercialsearch.com\/news\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/56582b2734c608a2cae92a373014d3bf\",\"name\":\"Nick Luettke\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/00c2b1522c2012de27fd688207867dae82e57407d7ea4e8b654a0d805fadb101?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/00c2b1522c2012de27fd688207867dae82e57407d7ea4e8b654a0d805fadb101?s=96&d=mm&r=g\",\"caption\":\"Nick Luettke\"},\"url\":\"https:\/\/www.commercialsearch.com\/news\/author\/nickluettke\/\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Vacancies Continue to Rise Amid Banking Turmoil \u2013 Q1 Office Analysis - Commercial Property Executive","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.commercialsearch.com\/news\/vacancies-continue-to-rise-amid-banking-turmoil-q1-office-analysis\/","og_locale":"en_US","og_type":"article","og_title":"Vacancies Continue to Rise Amid Banking Turmoil \u2013 Q1 Office Analysis","og_description":"Future of office debates have reverberated in recent weeks as the stability of the banking system and their commercial real estate investments have come into question.","og_url":"https:\/\/www.commercialsearch.com\/news\/vacancies-continue-to-rise-amid-banking-turmoil-q1-office-analysis\/","og_site_name":"Commercial Property Executive","article_publisher":"https:\/\/www.facebook.com\/CPExecutive","article_published_time":"2023-04-28T10:49:23+00:00","article_modified_time":"2023-05-05T13:12:45+00:00","og_image":[{"width":800,"height":620,"url":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2023\/05\/0523_CPE_Moodys.jpg","type":"image\/jpeg"}],"author":"Nick Luettke","twitter_card":"summary_large_image","twitter_creator":"@cpexecutive","twitter_site":"@cpexecutive","schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.commercialsearch.com\/news\/vacancies-continue-to-rise-amid-banking-turmoil-q1-office-analysis\/","url":"https:\/\/www.commercialsearch.com\/news\/vacancies-continue-to-rise-amid-banking-turmoil-q1-office-analysis\/","name":"Vacancies Continue to Rise Amid Banking Turmoil \u2013 Q1 Office Analysis - Commercial Property Executive","isPartOf":{"@id":"https:\/\/www.commercialsearch.com\/news\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.commercialsearch.com\/news\/vacancies-continue-to-rise-amid-banking-turmoil-q1-office-analysis\/#primaryimage"},"image":{"@id":"https:\/\/www.commercialsearch.com\/news\/vacancies-continue-to-rise-amid-banking-turmoil-q1-office-analysis\/#primaryimage"},"thumbnailUrl":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2023\/05\/0523_CPE_Moodys.jpg","datePublished":"2023-04-28T10:49:23+00:00","dateModified":"2023-05-05T13:12:45+00:00","author":{"@id":"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/56582b2734c608a2cae92a373014d3bf"},"breadcrumb":{"@id":"https:\/\/www.commercialsearch.com\/news\/vacancies-continue-to-rise-amid-banking-turmoil-q1-office-analysis\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.commercialsearch.com\/news\/vacancies-continue-to-rise-amid-banking-turmoil-q1-office-analysis\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.commercialsearch.com\/news\/vacancies-continue-to-rise-amid-banking-turmoil-q1-office-analysis\/#primaryimage","url":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2023\/05\/0523_CPE_Moodys.jpg","contentUrl":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2023\/05\/0523_CPE_Moodys.jpg","width":800,"height":620,"caption":"Figure 1. Source: Moody\u2019s Analytics CRE"},{"@type":"BreadcrumbList","@id":"https:\/\/www.commercialsearch.com\/news\/vacancies-continue-to-rise-amid-banking-turmoil-q1-office-analysis\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.commercialsearch.com\/news\/"},{"@type":"ListItem","position":2,"name":"Vacancies Continue to Rise Amid Banking Turmoil \u2013 Q1 Office Analysis"}]},{"@type":"WebSite","@id":"https:\/\/www.commercialsearch.com\/news\/#website","url":"https:\/\/www.commercialsearch.com\/news\/","name":"Commercial Property Executive","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.commercialsearch.com\/news\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/56582b2734c608a2cae92a373014d3bf","name":"Nick Luettke","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/00c2b1522c2012de27fd688207867dae82e57407d7ea4e8b654a0d805fadb101?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/00c2b1522c2012de27fd688207867dae82e57407d7ea4e8b654a0d805fadb101?s=96&d=mm&r=g","caption":"Nick Luettke"},"url":"https:\/\/www.commercialsearch.com\/news\/author\/nickluettke\/"}]}},"jetpack_featured_media_url":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2023\/05\/0523_CPE_Moodys.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts\/1004661049","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/users\/3239"}],"replies":[{"embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/comments?post=1004661049"}],"version-history":[{"count":3,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts\/1004661049\/revisions"}],"predecessor-version":[{"id":1004661138,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts\/1004661049\/revisions\/1004661138"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/media\/1004661058"}],"wp:attachment":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/media?parent=1004661049"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/categories?post=1004661049"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/tags?post=1004661049"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}