Office market posts strongest first-quarter leasing in four years as vacancy rate falls
Updated
Updated · Bakersfield Now · Apr 24
Office market posts strongest first-quarter leasing in four years as vacancy rate falls
11 articles · Updated · Bakersfield Now · Apr 24
More than 56 million square feet was leased last quarter, with vacancy dipping to 18.6% and construction completions hitting a record low of 1.3 million square feet.
CBRE projects annual leasing will surpass 2019 levels, and office investment volume is expected to rise 20% in 2026, driven by tighter supply rather than surging demand.
Hybrid work remains prevalent, with employers and employees increasingly aligned on attendance goals, while some underused buildings are being converted or demolished to further balance the market.
With conflicting data from top firms, what is the office market's true state of health?
Will the coworking boom create a new generation of workspaces or just the next real estate bubble?
Is the office market's recovery a mirage, soon to be erased by AI's impact on jobs?
As landlords regain power, will the dream of flexible, hybrid work die for most employees?
Can turning 'zombie' offices into apartments truly save America's struggling downtowns?