OFFICE LEASE RATES FALLING IN SOME MARKETS: I take this as a sign that the upheaval in the office market won’t end any time soon. At long last, in major markets office lease rates have begun to decline. The cities most affected seem to be those where people have the longest, most difficult commutes. Boston and Minneapolis have more employers who do life science or biotech research, which have higher return-to-office rates. Most companies have yet to redesign their office space needs to reflect the hybrid work model, so it seems like downward pressure on office rent rates is just getting started.
Uh-oh. Office rents are starting to fall.
By Thomas K. Brown,
OFFICE LEASE RATES FALLING IN SOME MARKETS: I take this as a sign that the upheaval in the office market won’t end any time soon. At long last, in major markets office lease rates have begun to decline. The cities most affected seem to be those where people have the longest, most difficult commutes. Boston and Minneapolis have more employers who do life science or biotech research, which have higher return-to-office rates. Most companies have yet to redesign their office space needs to reflect the hybrid work model, so it seems like downward pressure on office rent rates is just getting started.