Office Markets Across The US Rebound
USA – Office property markets across the United States show signs of recovery as the sector picked up pace in Q3 2021, according to a report published by S&P Global Market Intelligence last week.
Thanks to a growing appetite for office space, overall net absorption rose to 8 million sq ft during the third quarter, based on data from Nareit, a group representing mortgage REITs (mREITs), equity real estate investment trusts (REITs), private REITs, public non-listed REITs, and REITs traded on major stock exchanges.
Another good sign is that office rents edged up by 0.1 percent in Q3 2021, the first positive growth since the onset of the COVID-19 pandemic, while leased office space rose for the first time since Q1 2020.
However, vacancy level slightly increased by 10 basis points, but this is the smallest gain since 2019.
Notable office transactions in the prior week (week ended 31 October 2021) include the US$103.0 million divestment of a 19-storey office building in 590 Fifth Avenue in Manhattan, New York. The commercial property, which was sold by SL Green Realty Corporation, comes with 103,000 sq ft of space, including prime retail space at the ground level.
Meanwhile, Brookfield Asset Management Inc is seeking a buyer for net-leased office buildings in Brooklyn, New York. And the commercial properties could collectively sell for up to US$300 million.
Sources also revealed that the Georgetown Co LLC and American investor Bill Ackman are also selling their office building at 787 11th Avenue in New York City. Bloomberg reported that the owners are asking for roughly US$630 million for the fully leased 10-storey office building.