The office vacancy rate in major US cities hit 19.6% in Q4 2023, a new record high according to Moody's Analytics data going back to 1979. Overbuilding of offices in the 1980s-1990s during a construction boom left a supply glut, weighing on the market for decades. The 1990-1991 recession exacerbated high vacancies, and recovery was quick until the next downturn. Remote work adoption has made excess space a longer-term problem.
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00:00 It's Benzinga and here's what's on the block. The office vacancy rate in major US cities hit 19.6%
00:06 in Q4 2023, a new record high according to Moody Analytics data going back to 1979.
00:13 Overbuilding of offices in the 1980s to 1990s during a construction boom left a supply glut
00:20 weighing on the market for decades. The 1990 to 1991 recession exuberated high vacancies
00:27 and recovery was quick until the next downturn. Remote work adoption has made access space a
00:32 longer-term problem. Cities like Houston, Dallas, Austin have highest vacancies now,
00:37 while San Francisco had lowest in 1991 before remote work. Companies need less space per
00:43 employee now with open floor plans and remote hybrid models. The impacts are more structural
00:48 this time compared to economic cycle driven vacancy swings in the past. For all things money,
00:52 visit Benzinga.com.