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Office vacancies are near 20% as the ‘slow bleed’ continues


As offices remain empty, the property sector turmoil has continued to deepen

Thomas LaSalvia, head of commercial real estate (CRE) economics at Moody’s, told Quartz that the office sector is currently in a period of “tug-of-war” as the tight labor market gives workers more leverage amid companies’ return-to-office push. Prices in the sector have plunged nearly 11% since March 2022, when the Federal Reserve began hiking interest rates — wiping out gains from the preceding two years and deepening industry-wide woes. The opposite (albeit somewhat unlikely, depending on who you talk to) scenario, like a recession, would send office vacancies higher, as companies would look to trim costs without letting go of staff.

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