Real Estate
Featured Posts
Markets are settling into holiday mode, with stock futures slightly down on the last full trading day before Christmas. Here’s where things stand today: * Nasdaq-100: +0.37% * S&P 500: +0.04% (flat) * Dow Jones: -0.22% On Friday, the S&P 500 rose 1.1%, recovering
Quantum computing stocks are taking off in 2024. Is this the start of something big? Let’s take a closer look Google’s Chip Changes the Game Google’s new Willow chip, a 105-qubit processor, hit a big milestone: * Fixed Errors: It solved a 30-year problem by cutting down error
Government surveys that track the economy are failing. Budgets are shrinking, people are skipping surveys, and economic data we rely on is becoming less trustworthy. This is a big deal—because when the numbers are wrong, decisions that affect markets, businesses, and everyday life go wrong, too. Here’s what’
The S&P 500 Value Index just dropped 3.7%, marking its longest losing streak on record. Meanwhile, Bitcoin smashed past the $100,000 mark, and the Nasdaq climbed to 20,000. To me, it seems that value stocks have been left in the dust, and investors chasing bigger
Almost $10 billion has poured into Bitcoin ETFs since the US election, pushing Bitcoin past the $100,000 mark for the first time. The momentum is crazy, with Bitcoin posting its best winning streak since 2021. With investors pouring in, knowing the risks are more important than ever. Bitcoin’s
Office buildings are emptier than ever, reaching the highest vacancy rates in a decade.
Looks like our offices are now just fancy storage units.. Anyways, I'll dive into the reasons behind the rising office vacancies, the impact of hybrid work, and cities leading in both high and low vacancy rates.
Rising Vacancy Rates: The office vacancy rate has reached a decade-high of 13.8%, up 0.8% from last year. Cities like San Francisco (22.4%) and Houston (18.7%) are leading the charge with the highest vacancy rates.
Impact of Hybrid Work: Since hybrid work has become the norm, it's reduced our need for office space. In the last quarter, if we look at the net absorption of office space, it's dropped by -48.9 million sq.ft.
Net absorption refers to the amount of office space leased versus the amount vacated, essentially showing that more office space was vacated than leased.
However, there is a silver lining. The rate of increasing losses in square footage seems to be bottoming out, as shown in the chart below 👇
Top Cities with High & Low Vacancy Rates: Looking at cities with the highest and lowest office vacancy rates reveals an interesting secret. Major tech hubs like San Francisco, Houston, and Dallas-Fort Worth have the highest vacancy rates, influenced by our shift to remote and hybrid work.
In contrast, cities like Hickory, NC (1.0%), and Savannah, GA (1.5%) have the lowest vacancy rates, likely because of smaller office markets.
San Francisco's vacancy rate skyrocketed to 22.4% in 2024 Q2 from 18.6% a year prior. Similarly, Houston's vacancy rate increased to 18.7% from 18.2%. The reasons are multifaceted but largely revolve around the tech industry's massive shift to remote work, making companies reassess the need for office space.
On the other end, Hickory, NC, saw its vacancy rate drop to an impressive 1.0%, down from 2.3% a year earlier. Savannah, GA, also saw a decline to 1.5% from 1.8%. These cities are attracting businesses looking for lower operational costs and smaller, more affordable office markets.
It's clear businesses are moving to areas with lower costs, contributing to the rise in vacancies in these major hubs.
All in all, office vacancy rates are at a decade-high, partly driven by hybrid work and shifting business locations. What do you think the future holds for office spaces in your city?