More than 60% of office vacancy concentrated in 10% of buildings

June 21, 2023
  • Jacob Rowden
  • Elena Lanning
  • Despite record office vacancy rates nationally, disjointed performance since 2020 has driven the older-vintage “commodity” segment of the office market to bear an outsized proportion of impact—today, 30% of existing office buildings comprise more than 90% of total vacancy on the market.
  • Offices built in the 1980s and 1990s have been particularly impacted by the pandemic and cyclical headwinds of 2022, comprising more than 50% of the new vacancies that have emerged since 2020, despite comprising less than 40% of total office inventory.
  • With underperformance concentrated in a smaller subset of buildings, quality segments of the market have performed well despite broader challenges: vacant space in offices developed between 2010-2019 has declined by 5% since the end of 2019.
  • Even in older vintage segments of the office market, many buildings remain stable while a smaller subset has generated the majority of vacancy increases: even in 1990s-vintage offices, only 49% of assets have seen vacancy rates increase since 2019, with 29% seeing no change and 22% seeing vacancy rates decline.